Goldman Sachs Warns of Cracks in U.S. Labor Market Amid Rising Layoffs

According to PANews, Goldman Sachs has issued a warning about emerging issues in the U.S. labor market. The number of WARN filings, which are associated with large-scale layoffs across various states, has reached its highest level since 2016, excluding the peak during the pandemic. Data from Challenger indicates that layoff announcements in October have approached recessionary levels, primarily affecting sectors such as technology, industrial goods, and food and beverage. Goldman Sachs notes that the combination of layoffs and low hiring rates is making it increasingly difficult for unemployed individuals to find new jobs. Although initial unemployment claims remain low, they typically lag behind private sector layoff data by approximately two months, suggesting a potential rise during the winter season. Amazon plans to cut around 14,000 corporate positions this fall. Goldman Sachs also mentioned that there is currently insufficient evidence to identify artificial intelligence as a major driver of these layoffs.