Summary

• The Manufacturing, Transportation, and Healthcare sectors are experiencing elevated job loss levels from the first quarter of 2023, indicating continued performance degradation risks.
• The Administrative, Support, and Management sectors, along with Information and Retail Trade, have seen a significant reduction in layoffs, aligning with early 2022 levels.
• The Construction sector and Real Estate and Rental and Leasing sectors have shown correlated volatility over the past year, with current indicators suggesting a rise in risk

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Job losses within the Manufacturing, Transportation, and Healthcare sectors have persisted at the elevated levels observed in the first quarter of 2023, indicating an ongoing risk of performance degradation across these industries.

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In our previous job market and layoffs update, we noted an alarming 400% surge in layoffs within the Administrative, Support, and Management sectors. However, this trend has markedly decreased, and these sectors, along with Information and Retail Trade, have returned to the layoff levels observed at the start of 2022.

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The Construction sector, along with Real Estate and Rental and Leasing, have remained highly correlated and experienced fluctuations throughout the past year. Currently, both sectors appear to be facing an uptick in risk.

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Layoffs in Headlines

• Wells Fargo has announced another major layoff, with WARN notices filed in South Carolina indicating 525 job cuts following the closure of office space in Columbia.
• Transdev Services, a provider of transportation services, is laying off 829 employees in Arizona as indicated in the latest filings.
• Pfizer Inc. is reducing its workforce by 791 employees in New Jersey due to facility shutdowns. WARN notices have also been filed in Colorado, though the number of affected employees has not been disclosed.

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Other Notable Layoff Events

• Help at Home, a home healthcare service provider, has filed for layoffs of 785 employees in Alabama, attributing the decision to the state's failure to expand Medicaid.
• MV Transportation, the largest privately owned passenger transportation contracting firm in the U.S., has filed notices in Texas for the layoff of 778 employees.
• Stitch Fix is downsizing its workforce by 558 employees in Texas, as reported in recent filings, subsequent to the closure of its Dallas distribution center.

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Navigating the Economic Terrain

The economic landscape following Covid-19 remains a complex and ever-evolving puzzle, with trends and overall economic health that are often hard to interpret. Lenders and investors can utilize forward-looking data to forecast upcoming trends in unemployment and job markets, positioning themselves for success.

PortfolioPulse by Livesight offers an extensive analysis of shifting risks within various industries, geographies, and the broader business environment. Explore these insights with a free 30-day trial, available through our self-service dashboard, live API, or daily summary updates.

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