Why Low Layoff Numbers Don’t Mean the Labor Market Is Strong

Published On Sep 12, 2024, 5:04 AM

The article discusses the current job market, noting a paradox where layoffs are low despite a rising unemployment rate and slowing job growth. While some major companies have announced layoffs, overall, layoffs are below pre-pandemic levels. Historically, job cuts often occur later in an economic downturn, suggesting that rising unemployment might not immediately lead to widespread layoffs. This situation reflects past recessions, where job losses increased significantly only after economic conditions worsened.