While recent layoffs at major companies like Amazon, UPS, and Paramount have drawn widespread attention, they don’t tell the full story of the U.S. job market. Amazon’s announcement of 14,000 job cuts, followed by thousands more at UPS and Paramount, has fueled concerns about a broader downturn. Yet experts caution that these events, while significant for the affected employees, remain outliers in a labor market that continues to show resilience. The U.S. economy is currently averaging about 1.7 million layoffs per month—well below the 2 million-plus seen during the Great Recession. Even with the recent wave of announcements, the overall job market remains relatively stable. There’s no official recession yet, and many sectors continue to face labor shortages. Companies are citing multiple reasons for cutting staff. AI automation is a major factor, with Amazon, IBM, and Microsoft all pointing to efficiency gains from artificial intelligence as a driver of workforce reductions. Other influences include economic uncertainty around tariffs, the need to correct for pandemic-era overhiring, and a shift toward leaner operations. Federal Reserve Chair Jerome Powell acknowledged the trend during a recent press conference, noting that many firms are either halting hiring or cutting jobs, often citing AI as a key reason. However, he stressed that official data—much of which is currently delayed due to the government shutdown—is still needed to fully assess the situation. “It takes some time for it to get in there,” he said, underscoring the Fed’s close monitoring of labor trends. Historically, large-scale layoffs have sometimes triggered broader waves. Meta’s 11,000 job cuts in late 2022 sparked a ripple effect across tech and corporate America, eventually impacting over 250,000 workers. But economists say this current wave hasn’t yet reached that tipping point. Guy Berger of Guild compared the repeated layoff announcements to “The Boy Who Cried Wolf,” arguing that these events are often isolated and don’t reflect the broader economy. He noted that it would take dozens of Amazon-sized cuts—around 20 such events per month—to truly signal a systemic crisis. Ernie Tedeschi of Yale’s Budget Lab echoed this, pointing out that while 2 million layoffs per month are concerning, the real alarm bells rang when numbers exceeded 2.5 million, as they did in early 2009. Dana Peterson, chief economist at The Conference Board, emphasized that tech sector churn doesn’t represent the entire labor market. While some industries are adjusting, others—especially healthcare, education, and skilled trades—still struggle to fill open positions, particularly as baby boomers retire. Claudia Sahm, chief economist at New Century Advisors, noted that layoff announcements reflect company-specific decisions, not the overall health of the job market. “Amazon is a very large company, but it is not the US labor market,” she said. In short, while the recent spate of cuts is notable, it’s not yet a sign of a broad economic collapse. The job market remains complex, with some sectors contracting and others still in need of workers. The true picture will become clearer as more data becomes available.