Layoffs in the technology and banking sectors will have an impact on other industries, says Jason Greer

Whether by choice or necessity, many workers will change jobs in the coming months.

Some companies, particularly tech giants, have announced sharp job cuts as they face ongoing challenges from rising interest rates and inflation.

Most recently, Google said it would lay off 12,000 employees, Amazon announced a new wave of job cuts affecting more than 18,000 people, and Microsoft said it plans to lay off 10,000 employees amid fears of an impending recession.

At the same time, government data shows that the US job market is still strong with a record low unemployment rate of 3.5%.

According to Barbara Safani, president of Career Solvers in New York, many industries continue to do very well. The tech layoffs “do not necessarily reflect the broader job market,” she said.

And the Federal Reserve has shown it can raise interest rates without jeopardizing what has been a resilient job market, Randy Frederick, Charles Schwab’s managing director of trading and derivatives, recently told CNBC.

“If you can bring inflation down without destroying the job market, that’s the ‘Goldilocks’ soft landing,” he said.

96% of workers will be looking for a new job in 2023

In general, “the first quarter of the year is always a good time to look because household budgets have been replenished,” Safani said.

Overall, 96% of workers will be looking for a new job in 2023, mainly in search of better pay, according to a recent job board report

“That’s phenomenally high,” even compared to the numbers at the peak of the “big retirement,” said Vicki Salemi, careers expert at Monster.

Almost half, or 40%, of job seekers said they need a higher income due to inflation and rising spending, Monster found. Others said they have no room to grow in their current roles or find themselves in a toxic workplace.

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Job switching is widely recognized as the best way to improve your career prospects and salary. In fact, the wage growth differential for job-changers versus those staying in their current jobs is at an all-time high.

The latest data shows job changers saw wage growth of 7.7% through November, while workers who stayed in their jobs saw 5.5%, according to Daniel Zhao, chief economist at Glassdoor, citing data from the Federal Reserve of Atlanta.

Important considerations when looking for a new job Despite the layoffs from Google, Amazon, and Microsoft, it’s a good time to get a job