Want to switch jobs? Hurry up! The Great Resignation could slow down

The survey included leaders from 11 key markets – Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US – and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications. 

Once in a generation issues – a global pandemic, geopolitical tensions, inflationary pressures and financial difficulties – have come in short succession and taken a toll on optimism of global CEOs, said Bill Thomas is the Chairman and CEO of KPMG International.

However, not everything is bad on employment prospects. More than half of the business leaders expect the recession to be mild and short. And on a slightly longer term basis, the survey indicated rising confidence in longer-term growth of the global economy and their own companies’ prospects. The three-year view is more optimistic with only 9% expecting a further reduced headcount.

Several tech companies have been forced to cut back on hiring in recent months as businesses trim spending to prepare for a looming recession. Facebook-parent Meta Platforms will freeze hiring and further restructure amid an uncertain macroeconomic situation, Bloomberg News reported on Thursday, quoting Chief Executive Mark Zuckerberg’s communication with employees.

“I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively,” Zuckerberg told employees during a weekly Q&A session, Bloomberg News reported. The social media company had cut plans to hire engineers by at least 30% this year, Reuters reported in June.

Last month, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said she expects slowing growth from higher borrowing costs will make next year feel like a recession for millions of people across the globe, even if the global economy avoids a technical downturn.

Surging prices have forced central banks worldwide to tighten monetary policy, which is expected to cool inflation but risks tipping economies into recession. In the US, Federal Reserve officials pivoted to aggressively lifting rates to tame the fastest price increases in four decades.

Rate hikes in the US have also helped strengthen the dollar, which makes it harder for countries to service dollar-denominated debt and worsens their own inflation pain.

“Increased interest rates will bite and we will see the impact on growth,” Georgieva said in an interview.  “For hundreds of millions of people it will feel like a recession, so buckle up,” she said. “Hopefully, if we get inflation under control, then we can see a foundation for growth and recovery.”