Why Layoffs Are Still Happening & What Job Seekers Should Know

The job market remains tumultuous, and layoffs are still happening, leaving many job seekers frustrated, anxious, and uncertain about the future. It’s easy to internalize these setbacks and wonder if you’re doing something wrong in your job search, but in many cases, the reality is that these challenges are not a reflection of you at all. Instead, there are larger forces at play in the business world that are driving layoffs, delayed hiring processes, and even the dreaded “ghost jobs” (job postings that never seem to lead anywhere).

Let’s dive into some of the key reasons why layoffs are still happening and why job seekers are experiencing such a slow-moving hiring process.

1. Profit-Driven Pressures Post-COVID

Many companies saw significant increases in profits during the pandemic as demand for digital services, remote work solutions, and consumer goods soared. But now, in the post-COVID economy, those inflated profits are difficult to maintain, and companies are struggling to hit those high expectations set during the pandemic boom. Shareholders expect continuous growth, and when companies can’t meet those expectations, they often resort to layoffs as a way to quickly cut costs and satisfy investors, especially as quarters come to a close. Unfortunately, this can mean cutting talent even when the business itself isn’t in dire straits.

2. Economic Uncertainty and Inflation

Inflation, fluctuating supply chains, and global economic uncertainty are causing companies to be extra cautious with their financial planning. Rising operational costs mean many organizations are operating with thinner margins, and layoffs become a preemptive strategy to avoid deeper financial issues down the line. While these companies may appear stable on the outside, behind the scenes, they’re making tough decisions to protect their bottom line.

3. The Rise of Automation and AI

Automation and artificial intelligence are reshaping the workforce landscape. While these technologies improve efficiency, they also reduce the need for certain roles, particularly in sectors like customer service, administrative work, and even marketing. Companies are cutting jobs that can be automated, replacing human workers with technology to save on labor costs. This shift is happening rapidly across industries and is driving significant changes in how companies approach their workforce.

4. Overhiring During the Pandemic

During the pandemic, many companies overhired to keep up with the surge in demand for online services, healthcare, and e-commerce. Now that demand has normalized, some organizations are finding that they have more staff than they actually need. As a result, layoffs are happening as these businesses “rightsize” their workforce to better align with current needs.

5. Delayed Decision-Making and the “Ghost Jobs” Phenomenon

You’ve likely seen job postings that seem perfect for you, but when you apply, it feels like you’ve dropped your application into a black hole. In some cases, these are what we call “ghost jobs”—positions that are posted to gauge interest or prepare for future hiring but aren’t actively being filled right now. Why does this happen? Companies are often hesitant to hire immediately due to budget constraints, economic uncertainty, or internal restructuring. They’re playing it safe, building a talent pool but waiting for the right moment to make a move.

6. The Lengthy Hiring Process

Even when companies are hiring, the process can be slow and drawn out. Businesses want to be extra cautious to ensure they’re bringing in the right talent, especially when every hire feels more critical than ever before. What used to be a two-step interview process can now take weeks or even months as companies weigh their options. In some cases, it’s also a reflection of internal disorganization—many companies aren’t clear on what they truly need from a new hire, so the process stalls.

7. Layoffs as Restructuring Tools

Layoffs don’t always happen because a company is struggling financially. Sometimes, they’re part of a broader restructuring effort where the company is reorganizing its teams, merging departments, or pivoting to a new business strategy. While layoffs may reduce headcount, they can also be about positioning the company for future growth, shifting priorities, or adapting to new market realities.

A Message to Job Seekers: It’s Not You

If you’re feeling discouraged, know that you’re not alone. Many job seekers are finding themselves in a tough spot, not because they lack skills, experience, or the right attitude, but because of the larger economic forces at play. It’s easy to take rejection or the lack of responses personally, but it’s important to remember that these layoffs, slow hiring processes, and ghost jobs are often out of your control.

This is a challenging market, and it’s not a reflection of your abilities. Keep pushing forward, stay adaptable, and lean into your network. The right opportunity will come, and when it does, you’ll be ready.

Until then, take care of yourself. It’s okay to feel frustrated and even to take a break from the search if you need it. The job market may be rocky, but your career journey is uniquely yours—don't measure it against anyone else’s path or the current climate.

Hang in there, and remember, this storm will pass.