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

Hiring is done a few people at a time because a company needs to add more capacity in some function. Almost never are there media articles about it because the story that Dave’s Drycleaning added another pants presser doesn’t get much interest. Layoffs tend to be much larger and at all once when the company suddenly realizes it’s going to have trouble making payroll.

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