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Layoffs mount as job market gets murky
Jobs report is very difficult to forecast: Chris Low
FHN Financial chief economist takes a closer look at consumer confidence falling for the second straight month on ‘Making Money.’
A growing number of businesses are laying off workers en masse as they brace for a potential recession triggered by high inflation and rising interest rates.
Despite still-solid job growth and record-high wages in many industries, dozens of businesses are battening down the hatches as they warn of an increasingly grim economic outlook.
Amazon, Apple, Meta, Lyft and Twitter are among the companies either implementing hiring freezes or letting workers go as the Federal Reserve moves to raise interest rates at the fastest pace in decades in order to combat inflation. Economists widely expect the Fed to trigger a recession with higher interest rates, which could force consumers and ultimately businesses to pull back on spending.
Still, despite the plethora of job cuts at notable companies, this has not yet translated into a demonstrably weaker labor picture, according to Brendan Murphy, the head of global fixed income at North America Insight Investment. That could change in coming months as companies continue to pull back amid higher interest rates.
DEMOCRATS SLAM 'DANGEROUS' FED RATE HIKES, WARNING OF WIDESPREAD JOB LOSSES