The US economy keeps reporting adding jobs, but it seems like most companies are cutting workforce. What am I missing?

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Every month when the US jobs report comes out, they’re talking about an increase in jobs or a great jobs report. But when I read the news, I keep hearing about these companies cutting 5%, 8%, etc. of their workforce.

Most of them seem to be “white collar” jobs, and I understand why they’re doing it, but the reports feel disconnected from reality. I personally know people that have been laid off. I’m not trying to e political, I’m just trying to understand what I’m missing? Where is the disconnect?

In: Economics

10 Answers

Anonymous 0 Comments

One key factor is how they determine “employment” the easiest yet least accurate way is to look at the amount of people that file for unemployment. This is how they normally do this because it’s simple. Problem being is it doesn’t track underemployment nor does it factor in people that have exhausted their unemployment benefits and stopped filing.

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