Happy New Year -- we're going to have to let you go. A lot of workers may be hearing this as 2023 begins.
"It's going to be tough going in 2023," predicts UNO professor Mark Rosa. Rosa says as the fed continues interest rates to cool inflation, more companies are likely to cut back on staff. The U.S. Bureau of Labor Statistics finds that December and January are second and first, respectively, for the months with the most job cuts.
"Human resources is usually the largest expense" on the company ledger, Rosa explains. "Usually when they have to cut, it's unavoidable that they would cut staff."
With rates going up, Rosa says consumers are likely to cut back on big ticket items -- think auto sales.
"If somebody is saying 'I'm worried about losing my job, I'm certainly not going to go make a $50,000 commitment on a new pickup truck,'" said Rosa.
Rosa says another area where consumers are likely to make the first cuts is something that will hit New Orleans: cutbacks in leisure travel.
"Going on cruises, taking trips," said Rosa. "Those are usually the ones that will get hit first."
