January 12, 2023
A news-based Layoff Index based on layoff events captured by RavenPack illustrates how to track US companies which have cut their workforce.
Human capital is one of the most critical drivers of economic performance. As mass layoffs at large companies make headlines, RavenPack allows analysts to track these events from global news feeds in real time. To illustrate this, we created a news-based Layoff Index tracking US companies reporting cuts in their workforce.
We observed that reports of layoffs were more than twice their historical average during the early months of the Covid-19 pandemic, and steadily fell from 2020H2 to the end of 2021 to reach a historical low. Layoff reports have been slowly increasing throughout 2022 and are currently slightly above their pre-pandemic levels.
Zooming-in on the Technology sector, we found that Technology companies have comparatively reported more workforce cuts in 2022, with current levels close to their historical peak.
Overlaying news-based layoff reports with insights from
RavenPack Job Analytics
, we tracked changes in hiring patterns. We found that in March 2020, reports of job cuts increased and hiring growth plummeted, as pandemic-induced lockdowns started to take their toll on the economy.
The Covid-19 pandemic created a sudden socioeconomic stress, which explains why both signals moved in sync in 2020 and 2021. Under calmer market conditions, the economic stress on employment reflects on hirings before it translates into layoffs.
By combining insights from news, job postings, and other relevant datasets, RavenPack enables investors and analysts to detect patterns ahead of the economic news cycle, and capture opportunities.
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