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Magnit Contingent Workforce Employment Insights: Declining Layoff Rates in Q3

Magnit | October 24 2023

Average hourly pay decreased by 8% QoQ

October 24, 2023 – Magnit’s Q3 Contingent Workforce Employment Insights reveal layoffs rates have dropped significantly, returning to normal levels across the market, as wage growth continues to decline. Overall, average hourly pay declined 8% QoQ as the labor market rebalances against rising interest rates and declining hiring volumes.

The Contingent Workforce Employment Insights provide an independent measure of the contingent workforce labor market (e.g., freelance, gig economy, temp and/or short-term positions, etc.). Magnit uses proprietary algorithms that aggregate, cleanse, anonymize, and analyze data from a variety of internal and external sources, including hundreds of client programs. The company manages data on hundreds of thousands of contingent workers across over 51,000 unique roles, and categories such as tech, financial services, healthcare, manufacturing, life sciences, and consumer products and services.

“Though layoff rates have dropped significantly across industries, there remain pockets in sectors like health insurance where there was a brief uptick in layoffs, likely caused by the end of open enrollment season,” said Dustin Burgess, Senior Vice President of Strategic Advisory at Magnit. “As layoff rates decrease, we’re finding that workers are growing less risk averse as they adjust to a new labor market, with voluntary term rates rising 12.1% QoQ.”

QoQ Changes in U.S. Contingent Workforce Employment: -1% hiring volume

QoQ Changes by Industry (Sector):

  • Technology
    • Hiring volume: +23%
    • Layoff: -7%
    • Voluntary termination: +20%
  • Financial Services
    • Hiring volume: -8%
    • Layoff: +23%
    • Voluntary termination: +13%
  • Healthcare
    • Hiring volume: -4%
    • Layoff: -11%
    • Voluntary termination: +1%
  • Consumer Products & Services
    • Hiring volume: -7%
    • Layoff: -30%
    • Voluntary termination: -25%
  • Manufacturing
    • Hiring volume: +2%
    • Layoff: +45%
    • Voluntary termination: +230%
  • Life Sciences
    • Hiring volume: +17%
    • Layoff: -32%
    • Voluntary termination: +87%

QoQ Changes in U.S. Contingent Workforce Average Hourly Pay: -8%

QoQ Changes by Industry (Sector):

  • Technology: -2%
  • Financial Services: -7%
  • Healthcare: -10%
  • Consumer Products & Services: +4%
  • Manufacturing: -12%
  • Life Sciences: -8%

Other Timely Trends

Despite declining demand for IT/Technology roles overall, IT support roles such as IT support analysts and helpdesk technicians have experienced heightened demand, with hiring for these roles up 31% quarter over quarter and 91% year over year. This increase in demand has been accompanied by an average year-over-year rate growth of 10.4% YTD, higher than the 6.8% experienced in 2022.

To learn more about U.S. labor market trends, and the role contingent workers play within various industries, visit https://magnitglobal.com/us/en/resources/knowledge-center/blog.html.

About Magnit
Magnit™ is a global leader and pioneer in contingent workforce management. Our industry-leading Integrated Workforce Management (IWM) Platform is supported by 30+ years of innovation, modern software, proven expertise, and world-class data and intelligence. It enables companies to optimize talent and diversity goals while achieving operational and financial success. With Magnit, companies can adapt quickly to the evolution of work to grow their extended workforce with greater agility, transparency, and speed. magnitglobal.com  

“Magnit” is a trademark or registered trademark of Magnit, LLC. Any trade, product, or service name referenced in this document using the name “Magnit” is a trademark and/or property of Magnit, LLC. 

Contact
Claire Riedman, Senior Account Executive
Matter Communications
MagnitPR@matternow.com

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