LinkedIn, which is owned by Microsoft is a business and employment-focused social media platform. LinkedIn has revealed on Monday that it has laid off almost 700 workers, the majority of them were from the engineering department. According to a person familiar with the matter who wanted to remain anonymous because they were not authorized to discuss the changes, there were also cuts made in the company’s finance and human resources departments.
The cuts come as year-over-year revenue growth has slowed for eight straight quarters on the business-focused social network. Microsoft reported in July that it expanded by just 5% in the second quarter, despite membership growth having advanced each quarter for the previous two years. 10,000 job cuts were announced by Microsoft in January, with further cuts in July. The corporation is slimming down as a result of Microsoft’s total revenue growth slowing down, which has prompted CEO Satya Nadella to cut expenditures everywhere.
Unemployment Rate in Canada
In August 2023, Canada’s unemployment rate stayed constant for the third time in a row at 5.5%, just missing predictions of 5.6%. The finding indicated that the country’s labour market had cooled since the previous year, but the unemployment rate remained significantly below pre-pandemic standards. The number of unemployed people increased by 8.1 thousand to 1.189 million. For core-aged men, the unemployment rate climbed by 0.4%, whereas for core-aged women, it remained essentially unchanged.
The effects of rising interest rates and a faltering global economy are becoming more pronounced. In Q2 of this year, the Canadian GDP dipped by 0.2%, and preliminary estimates indicate that Q3 will see another fall. Other signs point to the possibility that the long-anticipated “mild” economic slowdown has already started. In fact, given the expanding population, economic growth already appears to be noticeably weaker. The Canadian GDP has now decreased for four consecutive quarters on a per-person basis. The unemployment rate in Canada increased by 0.5 percentage points over the past four months, which is the biggest increase since the 2008–2009 recession that wasn’t caused by a pandemic.
Demand for “excess” labour has also decreased. The ratio of job openings to the unemployment rate, sometimes known as the Beveridge curve, is currently at more “normal” levels, despite the fact that the unemployment rate barely changed over the past year. The number of job vacancies is steadily declining, and it is more likely that a further slowdown in labour demand would cause unemployment to rise.
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With retail sales volumes declining 3% annually at a rate in Q2, consumer spending on products has severely slowed. Although expenditure on services has increased, there are also indications that it may be slowing down.
According to the RBC economic calculation, this year, economic growth is slowing down in all but one province—Newfoundland and Labrador. Natural calamities and adverse growing circumstances have added to the already-significant expenditure and investment restrictions brought on by historically high borrowing rates.
Let’s hope, we can hear more about economy growth and not about unemployment growth in Canada in the future.