The tech sector’s axing of thousands of employees isn’t a sign that the tide is turning for According to the American Workers Association, Morgan Stanley.

Massive amounts of layoffs These were done at tech companies like Lyft, Twitter and Stripe as well as Meta and Amazon in recent months, while some economists have argued that only higher unemployment can resolve America’s ongoing problem with inflation.

But in An analyst at Morgan Stanley They were doubtful the tech sector’s job cuts marked an impending “harbinger of changes” for the Expand labor market.

While the investment bank’s experts said they were expecting a decline in The increased interest rates that have triggered job cuts in the United States are credited with U.S. employment growth. They forecasted that there would be a larger decline in U.S. employment. the labor Because of this, market was unthinkable the The American economy is largely “remains short-staffed.”

Downsizing in the The tech field had experienced 187,000 job reductions since 2021, they said. “sizeable” Number for the industry, but accounted for “barely more than 0.1% of total U.S. payrolls.”

Tech layoffs These are not “the canary in the coal mine” Signaling the All industries are experiencing extensive downsizing. the note’s authors wrote, arguing that even if companies wanted to reduce their labor costs, “there appears to be little fat to cut.”

Morgan Stanley isn’t the Only an investment bank can allay fears about the massive amount of money that is being made layoffs in Technology might be a way to spell for the Rest of the American workforce. The lender’s note came days after analysts at Goldman Sachs published a note of their own that insisted “tech layoffs are not a sign of an impending recession.”

“The tech industry accounts for a small share of aggregate employment—for example, the unemployment rate would rise by less than 0.3pp even in the inconceivable event that all workers employed in the “internet publishing, broadcasting and web search portal” industry are immediately laid off—so any drag on the All in all labor market should be small,” Goldman’s analysts said.

“Second, tech job openings remain well above their pre-pandemic level, so laid-off tech workers should have good chances of finding new jobs. Third, tech worker layoffs have frequently spiked in the past without a corresponding increase in total layoffs and have not historically been a leading indicator of broader labor market deterioration, and layoffs in other industries still look limited.”

The U.S. labor Market has remained strong even in these difficult times in the face of the Federal Reserve’s rate hikes. American employers added 261,000 jobs last month despite the fact that they raised their rates. the Central bank raises core interest rate the Höchstes Niveau in 15 years.

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