The US labor market’s post-pandemic penchant for holding on to employees is coming to an end, analysts say.
For years, many large businesses effectively hoarded workers, leading to a “no hire, no fire” environment; that’s now shifted to a “no hire, more fire” job market, a Reuters columnist wrote.
Amazon, UPS, Intel, Accenture, and Microsoft have announced layoffs recently, citing shrinking margins and the adoption of AI.
Investors have welcomed the job cuts this year; one economist likened the mood to the 1990s, when “we used to reward companies for letting people go.”
The trend carries risks for the broader economy — though experts don’t have the full picture without official data, which isn’t being released during the US government shutdown.
