Too early to call impact of layoffs on macro economy

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The article discusses the impact of recent layoffs on the macro economy. While there have been numerous news headlines about companies announcing layoffs, it is important to consider the broader context. Layoffs are a common occurrence in the economy, and the number of layoffs reported in the news may just reflect an ongoing phenomenon. The 1.6 million layoffs represent only 1.0% of total employment, and many people who are laid off return to work quickly. Additionally, the national layoff data is a bit stale, but the Labor Department's weekly tally of initial claims for unemployment insurance benefits shows that initial claims have been trending at levels historically associated with economic growth. While there is a case to be made that the economy may be closer to the end of the economic expansion, it is premature to conclude that the layoffs reported in the news are anything outside of what would be ordinary in an economic boom. The article also highlights that the stock market and the economy are not the same thing, and the metrics that define the U.S. economy may not always move hand-in-hand with the stock market. The article concludes by mentioning that Goldman Sachs has raised its year-end target for the S&P 500, reflecting an improved earnings outlook.

https://finance.yahoo.com/news/too-early-to-call-impact-of-layoffs-on-macro-economy-145756728.html