Layoffs are widespread, but some employers are unable to fill positions quickly enough

Some of the country’s largest corporations are cutting jobs, but others are still scrambling to fill positions as a result of wild swings in consumer priorities since the Covid pandemic began three years ago.

Tech titans Meta, Amazon, and Microsoft, as well as companies ranging from Disney to Zoom, have announced job cuts in recent weeks. Employers in the United States cut nearly 103,000 jobs in January, according to a report released earlier this month by outplacement firm Challenger, Gray & Christmas, the most since September 2020.

Meanwhile, employers added 517,000 jobs in February, nearly tripling the number predicted by analysts. This suggests that the labor market is still tight, particularly in service sectors that were hard hit earlier in the pandemic, such as restaurants and hotels.

Forecasting the path of the US economy is becoming even more difficult as a result of this dynamic. Consumer spending has remained robust despite headwinds such as higher interest rates and persistent inflation, surprising some economists.

In recent years, many employers have struggled to attract and retain employees due to issues such as workers’ child care needs and competing workplaces that may offer better schedules and pay.