83% of U.S. employers cut costs as recession fears rise: survey
OKLAHOMA, UNITED STATES — As fears of a potential recession intensify, American employers have begun to streamline operations and retrain staff, with 83% already taking proactive cost-cutting steps.
A June 2-28 survey conducted by Express Employment Professionals-Harris Poll among 1,000 U.S. hiring decision-makers found that 80% of U.S. hiring managers are bracing for economic downturn, and nearly half expect one within the next year.
Among the measures adopted, cutting unnecessary expenses leads (45%), followed by streamlining processes (29%), cross-training employees (26%), holding off on refilling vacated positions (23%), and conducting layoffs (19%).
The sense of urgency is reflected in blue-collar sectors, where 57% of employers admitted their companies may not survive a recession this year, compared to 36% overall.
Recession planning diverts focus from long-term growth
The survey highlights that 94% of respondents believe a recession would impact their organization, with 60% anticipating a major or moderate effect. Despite these concerns, some optimism remains: 78% expect their company to be in a better economic position by the end of the year, and 58% see the downturn as a growth opportunity.
However, nearly two-thirds (61%) report that planning for economic turbulence has pulled focus from long-term initiatives. Over half (57%) have overhauled their organization’s strategic plans since the start of the year, with blue-collar employers (65%) most affected.
Hiring decisions are already being shaped by these anxieties. If a recession were to occur, 35% of companies say they would reduce staffing, up from 30% in spring 2022, and 17% would freeze hiring entirely. Projections from the Congressional Budget Office suggest that a moderate recession could boost unemployment from 4.2% to as high as 7.5%, risking up to 5 million job losses.
Upskilling and flexibility seen as keys to resilience
Company leaders are seeking solutions to navigate an uncertain future. Training and upskilling programs (60%), flexible staffing (39%), and clearer leadership communication (33%) were cited as vital resources.
Robert (Bob) Funk Jr., CEO of Express Employment International, emphasized, “The most resilient companies don’t just react to economic shifts; they use them as catalysts to become more efficient. By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”
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