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Layoffs are coming, but not for all sectors of the economy

CEOs are beginning to dust off their stash of pink slips after several years of almost non-stop hiring, save for a few months early in the pandemic.

  • According to a new survey of 400 US CEOs by consulting firm KPMG, about 9 in 10 are considering a recession in the next year and 51% are considering downsizing in the next six months.

Why it matters: There are increasing signs that the labor market is cooling off – at least in certain areas of the economy.

  • Job openings fell by more than 1 million from July to August, the Bureau of Labor Statistics reported Tuesday.

Game Status: Areas where it seemed like the good times would never end — think the mortgage industry and technology — will likely be hit the hardest, Paul Knopp, CEO of KPMG, tells Axios.

  • Layoffs in finance and insurance nearly doubled to 23,000 in August from 12,000 in July, the Bureau of Labor Statistics reported Tuesday.

Yes but: The overall job market is unlikely to fall off a cliff, says Knopp, as labor shortages continue to plague certain industries.

  • Layoffs are likely “more of an industry story,” he says, adding that he sees “even a 3-5 year period of pretty heavy employment.”

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