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Poll: American companies expect job cuts in 2023

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A survey of US national economists has shown that more US companies are now expecting job cuts and expansion spending cuts.

A survey by the National Business Economics Association found that business owners remain concerned that the US Federal Reserve’s decision-making process could push the US economy into recession in 2023.

It found that respondents, on average, rated the number of workers they plan to hire at their companies at -7, up from +8 in October when the league conducted the previous survey.

However, due to inflation, the study found that companies still expect to pay higher wages to those workers they retain.

“The results of the January 2023 Business Conditions Survey are indicative of widespread concern about the onset of a recession this year,” association president Giulia Coronado said in a statement.

To fight inflation, the Federal Reserve raised interest rates aggressively in an attempt to slow down the US economy without plunging it into a recession, known as a soft landing.

The Fed is expected to raise interest rates again this week, albeit at a slower pace than before, as inflation has eased in recent months.

Source: AP

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