Layoffs at Major Companies... Is the US economy in trouble?
- Marc Lowe
- Nov 21
- 3 min read
Lately, you may have seen a lot of scary headlines about big companies cutting jobs — UPS, Amazon, Target, even American Airlines. Some people think this means the U.S. economy is about to crash.
But here’s the thing: layoffs happen for many reasons, and they don’t always mean trouble.
Let me explain my thoughts about what’s really going on — and why I don't think it's time to panic.
1. The headlines sound bad — but they don’t tell the whole story
In October, U.S. companies announced over 150,000 layoffs, the highest for that month in 22 years. That number sounds big, but let’s take a step back.
Layoffs go up and down every year. In fact, they were even higher earlier this year, and the economy kept adding jobs overall. So, big layoff numbers don’t automatically mean people aren’t working.
2. People are still getting hired, despite layoffs
Even though some companies are cutting jobs, others are still hiring. A private-sector report showed about 42,000 new jobs were added in October. That’s not huge growth — but it’s still growth.
And if we look north to Canada (whose economy usually moves in the same direction as ours), their job numbers have been strong too.... That’s another hint that the U.S. job market is still standing strong.
3. Unemployment claims are still low
If a lot of people were losing jobs and couldn’t find work, we’d see a big jump in unemployment claims — people filing for government help. But we’re not seeing that.
Claims are still near historic lows. That tells us most people who lose a job are finding a new one pretty quickly.
4. Why are we seeing more layoffs, then?
A few reasons:
Technology and AI: Some companies are cutting jobs to use automation instead.
Cost cutting: Businesses are trimming expenses to protect profits.
Government cuts: Over 300,000 of this year’s layoffs came from government jobs, not private companies.
So, it’s not all bad news — it’s more about how businesses are adjusting to change.
5. What this means for you
If you’re a business owner or getting close to retirement, this is your reminder to stay calm and focused.
Here’s what I believe:
Don’t make emotional decisions. Headlines come and go, but your long-term plan matters more.
Check your systems. Are your savings, investments, and business all set up to handle short-term ups and downs?
Keep perspective. Job cuts don’t mean people can't find other jobs. As cold a it sounds, that's what matters in the end, in my opinion.
6. The bottom line
Layoffs are higher right now, but they don’t mean disaster. The job market is still strong, and many companies are hiring.
When you look at all the facts — not just the scary headlines — you see a normal part of the business cycle.
So next time you see another headline about layoffs, take a breath. Step back. The economy’s still moving.
About the Author
Marc Lowe, CFP® is a fee-only fiduciary advisor based in Waterford, CT, helping retirees & business owners make smarter financial decisions.
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