January Jobs Report “jumped off the page” with an impressive 517,000 new jobs created! Despite the layoffs from tech giants like Dell, PayPal, Salesforce, Microsoft, Amazon, and Meta, a new study by Goldman Sachs suggests these companies are not representative of the broader economy. The common characteristics of these companies include being in the tech sector, hiring aggressively during the pandemic, and seeing sharper declines in stock prices. Economic bears continue to voice concern about the layoffs as a sign of a slowing economy, but Chief Economist Jan Hatzius believes it's an overreach. Job gains for November and December 2022 were also revised higher, and the job finding rate among unemployed individuals has been high by historical standards .
Are these layoffs a sign of a weakening US economy or just a result of tech companies restructuring?
Leave a Reply