From Fortune:

Amid job cuts and layoffs in tech, finance, and media, a robust economy is still hiring. Companies that over-hired during the pandemic are now cutting jobs due to changes in economic trends. The U.S. added 353,000 jobs in January and evidence suggests economic confidence. Many big names like Google, Amazon, and Meta have announced layoffs.

Different sectors are experiencing job gains and cuts, with most industries adding workers while layoffs are more concentrated in certain sectors. Professional and business services and health care have seen job gains, while the information sector, including media and tech, is struggling with job loss.

Companies are still cutting jobs as the economy grows and consumers spend. These layoffs come from shifts in business strategies and efforts to reduce costs. Job cuts don’t necessarily mean the economy is weakening, and many high-tech companies are adjusting to long-term demand for their products and services.

Job cuts by high-profile companies are often spread over time, with layoffs not reflected immediately. While layoffs are disruptive, overall, it won’t significantly impact the large U.S. economy. Each month, roughly 5 million people leave their jobs or are laid off, while more than 5 million are hired.

Overall, the job market is healthy, with unemployment benefits at a low level. Additional data also shows that private-sector companies remain in a hiring mode. The effects of job cuts, while concerning, are still not indicative of a weakened economy.



Read more: Why are there big tech and media layoffs as economy keeps growing?