Historically, the last quarter of the year -- the fourth -- is the time of year when companies downsize. That has many employees bracing for a potential layoff, and FOX 9 News spoke with an expert to get a forecast.
On average, 30 percent of layoffs come in October, November or December.
"Years ago, employees who were worried that their jobs might be in jeopardy used to breathe a sigh of relief before the end of the year, because employers normally didn't lay off people around the holidays," Annie Stevens, managing partner for ClearRock, explained. "That has changed since it's no longer a stigma for employees to be laid off, or for companies to make cutbacks. For those organizations that need to, trimming their payrolls before the beginning of a new year to enable them to get a fresh start has become more commonplace"
Jennifer Carlson, metro market manager at Robert Half, spoke to FOX 9 News about what CFOs are saying in the Twin Cities when it comes to hiring and firing.
Watch the video for the full interview.
Q: What kind of picture are you getting as far as hiring and firing this year?
A: We're getting a different story with the Twin Cities metro market surveys we've done with our CFOs -- 13 percent said they are actually going to be hiring for new positions for this fourth quarter, and 63 percent said they would be replacing open positions. So, it's definitely a different story that we're hearing here.
Q: Are there areas of work where there's likely to be some downsizing?
A: In the manual labor section, there could be some or companies that over-hired, but in the professional services area that we focus on, this tends to be our busiest time of year. We have tax opportunities coming up as well as companies getting ready for year-end. There's a lot of benefits enrollment. Things like that cause increased work load, so we definitely see higher demand in the fourth quarter.
Q: Are there red flags for someone who might think they're vulnerable of being laid off?
A: If a company is being acquired, you should be more aware of what's going on around you. If there are a lot of closed-door meetings, it's good to be proactive and work with your boss to ask those questions -- and hopefully, they'll be transparent with you if things are looking like they are going to change.