- Online job marketplace ZipRecruiter laid off hundreds of employees on a 10-minute long Zoom call Friday afternoon.
- The US added more than 270,000 jobs in February, but within weeks the worsening coronavirus pandemic led to a one-week record 3.3 million unemployment claims being filed.
- Experts predicted layoffs hitting the recruitment industry, and ZipRecruiter may have been the first domino to fall.
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ZipRecruiter, the online job marketplace in the US, laid off hundreds of employees on a Zoom call Friday afternoon, as Business Insider previously reported. While CEO Ian Siegel hasn't confirmed that the layoffs were due to the coronavirus outbreak's impact on hiring during the 10-minute conversation, the pandemic has already caused widespread unemployment.
The virus, which first spread from China in late December, has infected more than 100,000 people so far and spread to every continent except Antarctica. The US added 273,000 new jobs in February, even with coronavirus fears rising, but as the virus began to spike in March, social distancing measures shut down whole sectors of the US economy. Jobless claims for the week of March 21 were 3.3 million, smashing the previous record.
In response, firms including United Airlines have announced a freeze in hiring until the virus stops spreading, and Google and Facebook have limited on-site job interviews.
Experts in the recruiting space told Business Insider that if the virus isn't controlled, there will be layoffs in their industry — causing a major shakeup among those who help others find work, just when they most need it. ZipRecruiter may have been the first domino to fall.
Coronavirus outbreak halted strong February jobs market
The US added 273,000 new jobs in February, even with coronavirus fears rising — but experts said the good times wouldn't last for long.
Job.com, which processes 2.5 million job postings a month, found no change in hiring or open positions in February from coronavirus. But Arran Stewart, co-founder of Job.com, told Business Insider in early March that he saw a slowdown occurring by mid-April. "There's an element of fear and safety and just economic slowdown that will all play [a role as] factors toward the way people hire."
Kevin Grossman, an HR industry veteran and president of Talent Board, said the virus' impact on hiring was initially moderate and concentrated in Asia. He predicted that as travel, hospitality, and retail continue to take hits from less consumer spending, hiring would slow and recruiting teams would get laid off.
Both Stewart and Grossman predicted layoffs in the recruiting space itself if the virus could not be contained, something which has already come to pass at ZipRecruiter.
ZipRecruiter did not respond to requests for comment on Monday.
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