The news: Advertising and public relations lost 2,400 jobs in May despite an overall increase in US employment, per the US Bureau of Labor Statistics, a sign that the industry is beginning to wade through a period of uncertainty that will define the rest of 2022.
By the numbers: Ad agency employment is still at a high, but last month’s downturn comes as the industry faces an uncertain economic outlook and adtech issues.
What’s behind the reversal? By some metrics, digital advertising seems to be doing better than ever. Digital ad spending will reach record highs this year, consumers are still spending, and industries that suffered during the pandemic are seeing a return to advertising.
Indie agency feels the squeeze: Recent layoffs at independent advertising agency The Many are a preview of how advertising’s troubles will take form.
The big takeaway: The immediate future of the digital ad industry is unclear, and if a recession really is coming for the US economy, advertising is often one of the first industries to get cut.