I was duped into thinking that my college degree and dedicated work ethic would set me up for success. Of course, I’m incredibly grateful that I’m able to make money doing something I love, but I can’t deny that I’m exhausted by the increasing number of threats to my employment. First, it was AI coming for my job, but now, there’s another threat to contend with—a phenomenon dubbed the “Great Shrinking.” According to a recent Business Insider article, America’s corporate world is changing dramatically. The white-collar landscape is shrinking, effectively placing the entire workforce in a precarious position as a result.
Just when I thought the workforce (and the job market) couldn’t get any more complicated, I was wrong—but don’t worry, it’s not too late to figure out how to keep up. Ahead, we’re diving into what the Great Shrinking is, what’s causing it, and how it is impacting the workforce and the people in it. Plus, we’re sharing how to survive it and even use this shift to your advantage.
What is the Great Shrinking?
The “Great Shrinking” is the term being used to describe America’s shrinking workforce. Companies have been downsizing for years, slashing positions and subsequently decreasing the number of job openings across all industries. While this isn’t new news per se, what’s changing now is that mega-employers like Amazon and Ford have joined the quest to reduce their number of corporate employees.
Previously, making a move like this was unprecedented for a large company. After all, being able to employ thousands has always been a hallmark of success, and doing anything to the contrary, like cutting staff or shutting down and blending departments, implies otherwise. Needless to say, the fact that the tides have turned suggests a major shift is happening in corporate America.
What is causing the Great Shrinking?
While a myriad of factors are shrinking the workforce, the increasing use of AI at work is arguably the Great Shrinking’s biggest culprit. Thanks to AI, employers can cut staff in an effort to boost their monetary bottom line. Case in point: Amazon CEO Andy Jassy told his 350,000 corporate workers that cuts are coming, courtesy of anticipated “efficiency gains” from AI. Similarly, Ford’s CEO proclaimed AI will wipe out “literally half” of all white-collar jobs; meanwhile, JPMorgan is using AI to “resist headcount growth,” “boost efficiencies,” and eventually reduce employees in its operations division by 10 percent.
“The classic CEO line—‘I couldn’t do it without my team’—is on its way out, thanks to the technology that’s replacing those teams.”
These declarations and plans are a stark juxtaposition to the corporate landscape we’re all familiar with. The corporate world as we know it is filled with departments and ladders, and before AI, every professional had their respective lane and stayed in it. But now, this technology is blending roles, leading employers to slash jobs and nix entire departments. This, combined with ongoing layoffs and labor shortages from Baby Boomers and Gen Xers retiring, is only exacerbating the job market’s current imbalance. It’s increasing the disproportionate ratio of candidates to job openings and decreasing the size of the market as a whole.
All of this suggests that the classic CEO line—‘I couldn’t do it without my team’—is on its way out, thanks to technology that’s replacing those teams.
How the Great Shrinking will impact the workforce
Today’s workforce might offer more movement compared to previous years, but the Great Shrinking will undoubtedly lead to stagnation. The ratio of job seekers to job openings will remain disproportionate and consequently create fewer career opportunities for everyone. Worse, it might push those who are unemployed into a corner; they might take jobs they’re overqualified for out of necessity or have a harder time finding work. By the same token, having fewer job options will make it more difficult for young professionals to gain the necessary on-the-job experience that will help them succeed.
Furthermore, being able to scale the career ladder is one of the biggest allurements of the corporate world. Big companies offer ambitious professionals opportunities to move up, so if that landscape is erased, growth will become more difficult. And because smaller companies often offer less upward movement, professionals will have less certain career paths. Plus, they might be forced to switch jobs more often to avoid plateauing in their career. The bottom line is that with the Great Shrinking, career growth and job security will be less certain.
The Great Shrinking isn’t all bad, though. In fact, it might just level out the playing field between small businesses or start-ups and their larger counterparts. Plus, employee morale tends to be higher within smaller organizations, and there’s reportedly more room for creativity and innovation. Similarly, working alongside a smaller team could potentially broaden your skillset and experience, which is always a great resume booster.
How to survive the Great Shrinking
It’s impossible to determine exactly how the Great Shrinking will affect you, but know that change is coming— and it’s coming fast. To survive the Great Shrinking and even leverage these changes to work for you instead of against you, you can do these things:
“The Great Shrinking isn’t all bad, though… employee morale tends to be higher within smaller organizations, and there’s reportedly more room for creativity and innovation.”
Gain AI literacy
AI might be the driving force behind the Great Shrinking, but that doesn’t mean it’s guaranteed to take over your job. Rather, it means that gaining AI literacy is more important than ever. This is essentially a soft skill that refers to the ability to use AI tools effectively, responsibly, and thoughtfully through critical thinking, problem-solving, and digital communication. Moreover, LinkedIn’s Skills on the Rise report revealed that AI literacy is the fastest-growing and most in-demand skill, so having it will ensure you’re seen as a valuable employee.
Upskill and learn from colleagues
It’s safe to say that blending roles is a workplace trend that will only grow in popularity, which means now’s the time to upskill. This refers to acquiring new skills and honing your skillset and meta skills, like adaptability and creativity. You want to be ready for whatever comes your way at work, so upskilling now can help alleviate any risks of getting cut. Learning from your colleagues can also be beneficial in the same way. Get acquainted and build a rapport with employees from other departments, and find out how you both can support each other moving forward. This will give you an unprecedented view of what jobs within every department entail, and equip you with the tools and knowledge to tackle work in that division.
Start freelancing
Just because employers are downsizing doesn’t mean their workload is, too. This is why many are turning to freelancers or contract workers and using them to help offload some of the strain. Freelancing can be a pretty lucrative career path, and building your portfolio early while you have a steady income can help cushion the landing if you experience an unexpected job loss. More importantly, it’s a great opportunity to network and build relationships with others in your industry, gain experience, and hone your skills.
Expand your search into more industries
Lastly, if you’re job hunting, feel like your career has plateaued, or are worried about getting laid off, being open to working in any industry can bring more opportunity. According to Glassdoor, this is a strategy recent college graduates are currently using in their job search, with many applying to jobs in healthcare solely for its perceived job security. This particular sector is robust with employment opportunities in everything from research and administration to accounting and everything in between. Of course, this is just one example, but the key is to keep an open mind. You never know what you’ll stumble upon, and broadening your horizons and looking for roles that best match your skillset, no matter the industry, will give you more employment opportunities.
The truth is, life doesn’t always go according to plan. The job market is going through major changes because of AI, so it’s time to adapt and adjust accordingly. While the corporate landscape is shifting, the Great Shrinking isn’t something to fear. If anything, knowing what’s coming can give you the power to be proactive and successfully handle whatever comes next.
Arianna Reardon, Contributing Writer
Arianna is a freelance writer and journalist, and the self-proclaimed hot and dirty martini queen. At The Everygirl, Arianna uses her authenticity and relatability to empower, inspire, and motivate women everywhere. Whether she’s writing about sex and relationships, career and finance, beauty and fashion, wellness, or home and living, Arianna’s passion shines through in all her work.
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Source: Cosmo Politian
