Goldman Sachs has highlighted emerging "cracks" in the US labor market, with WARN filings for planned large-scale layoffs reaching their highest level since 2016, excluding the pandemic peak. October's layoff announcements, nearing recession levels, were predominantly from the technology, industrial goods, and food and beverage sectors. The bank noted that the combination of layoffs and low hiring rates is making it increasingly difficult for the unemployed to secure new positions.
Despite low initial jobless claims, which typically lag behind private sector layoff data by about two months, Goldman Sachs anticipates a potential rise in claims during the winter. Amazon's plan to cut approximately 14,000 corporate jobs this fall underscores the trend. However, Goldman Sachs stated that there is insufficient evidence to attribute these layoffs primarily to AI advancements.
Goldman Sachs Warns of Rising Layoff Signals in US Job Market
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