Education industry at highest risk of layoffs over next 6 months: survey

While the layoffs technologies And mass media make headlines, chief financial officers warn of job cuts in education in 2023.

A survey of 600 financial directors carried out in a number of industries through Kupacloud-based spending management platform, found that 100% of CFOs in the education sector responded “Reduce workforce” to the question “What actions will your organization take in the next six to twelve months to spur growth in the event of a recession?” “

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In an interview with FOX Business, Coupa CFO Tony Tiskornia said the education industry’s unanimous announcement of workforce cuts in the next half of the year offset potential problems in the event of a recession.

E-learning company Udemy cut 10% of his workforce and Seattle Public Schools are preparing for layoffs due to a $131 million budget deficit.

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Unemployment rate in educational services in January was 3.2%, according to the Bureau of Labor Statistics, compared with 3.5% a year ago. This is below the overall US unemployment rate of 3.9%.

Unlike manufacturers or skilled labor in accounting, health care and construction, the education sector does not produce a good or service that can be bought, making it especially vulnerable to layoffs during an economic downturn.

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Data collected by Zippia showed that education services already lost 136,000 employees from June 2021 to June 2022.

Government data shows that 3.88 million people worked in education in January, a broad category that includes teachers from elementary schools to college professors, workers in business, technical and other schools, and support workers.

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Other industries most affected by the looming recession include Communications, where 60% of the sector’s CFOs point to layoffs as a solution, while Utilities, Law and Science round out the top five, where 50% of CFOs from each industry said that they will cut their workforce this year. .

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Which sectors have the safest jobs?

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According to the survey, only 20% of CFOs in the healthcare and accounting industries believe layoffs are expected within the next six to twelve months, while only 17% of CFOs in the entertainment industry said they think job cuts will affect the business.

With 86% of CFOs saying layoffs are a last resort, Tiskornia believes talent and people remain a company’s biggest asset and should be treated accordingly.

“However, in many cases, CFOs do not have the data and visibility needed to truly consider alternatives to layoffs where possible,” he added.

Are there exit options?

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Alternative cost-cutting measures are currently being explored, CFOs surveyed said: 38% are in favor of higher prices for products and services they sell, 33% say stricter spending rules will help, and 32% are pushing for contract renegotiations with suppliers.

In essence, “Proper planning, digitization and optimization will minimize or completely eliminate the consequences of layoffs,” Tiskornia concluded.

Over the next six to twelve months, 33% of finance executives across all sectors said they were most concerned about supply and demand, 32% said they were considering cutting costs, and 27% said they expected layoffs.

Get the latest on this story at FOXBusiness.com.

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