The advertising industry experiences the worst job loss in 19 months


According to the monthly figures shared by the US Bureau of Labor Statistics, advertising and related industries have lost 8,700 jobs in September 2022 alone. The last largest seen job loss was back in January 2021, where the industry lost abut 6,000 jobs. It is surprising that the industry experienced such a loss in September when things were looking positive for the sector during the summer.

The overall jobs increased by 263,000 in the previous month. This makes the large job loss in advertising look even more pronounced. In May 2022, we observed a similar behavior in the job market where advertising lost 2,400 jobs while the overall jobs was rising. However, the industry recovered those losses during the summer and even climbed to an all-time high in the month of August.

Looking back, we can observe how these losses in September may have been due to the effects of non-relenting ad revenue declines, staff layoffs, and cutbacks from related industries. Even big players like Warner Bros. Discovery, and LinkedIn have made moves to downsize their marketing teams recently. Geico decided to do a huge marketing staff cutback last week. This tells us that further layoffs are on the horizon.

Although consumer spending has been stable despite the rapidly rising inflation, industries are anticipating a different turn of events for the coming months. The Fed’s decisions to increase interest rates in response to inflation has affected corporate spending. This is one of the major reasons that contributed to loosen up the tight labor market.

At a time where even the big firms are announcing layoffs and hiring freezes, employers in general have less money to dedicate for advertising. They fear whether consumers may not be willing to spend as much, causing them to lose ROI for ad investments. Although the economy may have affected things largely, the advertising industry could also be finally feeling effects of its own actions.

One such issue is privacy. The data collection practices of the advertising industry is under scrutiny of the federal government. Ad agencies are being sued for their actions which were considered to be normal industry practice until recent. One recent example is how advertising data was used by law enforcement after the turn of Roe vs. Wade to charge women who sought out abortion care.

Things are not looking all gloomy for the advertising industry either. Even though the sector experience big losses in September, the employment is still residing higher on the chart than it did back in 2021 or 2020.

By Resume Mansion



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