Survey: Firms expect job cuts in ’23 amid recession fears

Jan 22, 2023, 7:01 AM | Updated: 9:06 pm

NEW YORK (AP) — A survey of national economists found that more businesses now expect job reductions at their firms and to spend less on expansions for the first time since the pandemic, a sign that the Federal Reserve’s push to raise interest rates is doing its job to slow the economy.

But the survey shows that business owners are still concerned that the Fed’s decision-making could push too hard on the economy and potentially put the U.S. into a recession this year.

The January survey by the National Association for Business Economics found that its respondents put on average a reading of -7 on how much they plan to hire at their firms, down from previous reading of +8 in October, when NABE did its previous survey.

However, due to inflation, the survey shows that businesses still expect to pay higher wages for the workers they are holding onto.

“The results of the January 2023 NABE Business Conditions Survey indicate widespread concern about entering a recession this year,” said NABE President Julia Coronado, in a statement.

In order to combat inflation, the Fed has been raising interest rates aggressively in an effort to slow down the U.S. economy without putting it into a recession, known as a “soft landing.” The Fed is expected to raise interest rates again this week, albeit at a slow pace than they have in the past as indicators of inflation have been cooling down in recent months.

One sign of inflation easing is the survey’s materials costs section. Respondents to the NABE survey showed material costs were at a reading of 47, down 5 points from October and well below the July reading of 76. More respondents now expect material costs to fall than rise this year.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Signage outside PayPal headquarters in San Jose, Calif., is pictured on March 10, 2015. PayP...
Associated Press

PayPal to cut 2,000 jobs in latest tech company cost-cutting

PayPal said Tuesday it will trim about 7% of its total workforce, or about 2,000 full-time workers
13 hours ago
California Gov. Gavin Newsom speaks Tuesday, Jan. 24, 2023, at the I.D.E.S. Portuguese Hall in Half...
Associated Press

California seeks new gun restrictions following shootings

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom wants to limit where people can carry concealed guns after multiple mass shootings left dozens dead across the state in January, calling for more restrictions in a state that already has some of the nation’s toughest gun laws. He endorsed legislation Wednesday that would ban people from […]
2 days ago
FILE- Adani group Chairman Gautam Adani speaks during the inauguration of the 9th Vibrant Gujarat G...
Associated Press

Adani scraps $2.5B share sale after fraud claims hit stock

NEW DELHI (AP) — Embattled Indian billionaire Gautam Adani called off his flagship company’s $2.5 billion share share late Wednesday after a tumultuous week saw his conglomerate shed tens of billions of dollars in market value after claims of fraud from a U.S.-based short-selling firm. Citing a volatile market and an unprecedented situation, the Adani […]
2 days ago
FILE - President Joe Biden, right, at the top of a meeting with congressional leaders to discuss le...
Associated Press

Biden, McCarthy to meet, discuss debt ceiling at White House

WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy prepared Wednesday for a face-to-face meeting at the White House, the new Republican leader hoping to negotiate significant federal spending cuts in a broader deal to prevent a debt limit crisis. Biden has refused to engage in direct negotiations over raising the nation’s legal […]
2 days ago
Associated Press

Mexico zoo director killed, cooked 4 pygmy goats for party

MEXICO CITY (AP) — The former director of a zoo in southern Mexico killed four of the zoo’s pygmy goats and served them up at a Christmas-season party, authorities said. José Rubén Nava was replaced as director of the local zoo in the city of Chilpancingo on Jan. 12 following the death of a deer […]
2 days ago
Maryland Gov. Wes Moore delivers his first state of the state address, two weeks after being sworn ...
Associated Press

Maryland Gov. Wes Moore emphasizes public service in speech

ANNAPOLIS, Md. (AP) — Maryland Gov. Wes Moore emphasized commitment to public service in his first State of the State speech Wednesday, highlighting his proposal to create a service year program for high school graduates that he said will be the first of its kind in the nation. Moore, who is the state’s first Black […]
2 days ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Survey: Firms expect job cuts in ’23 amid recession fears