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Title: Corporate Profits Surge as Companies Cut Nearly 1 Million Jobs

Link: https://slashdot.org/story/25/11/07/1725230/c...

U.S. corporate profits have risen to record levels this year as companies
eliminated nearly 1 million jobs. Chen Zhao of Alpine Macro calls the
disconnect a "jobless boom." Companies typically cut workers when profits
decline. Amazon laid off 30,000 employees despite strong earnings. Zhao
attributes the pattern to AI adoption boosting productivity across industries
while reducing demand for workers. Labor demand has fallen to zero growth or
mild contraction. The Federal Reserve lowered interest rates in September and
October after Jerome Powell noted concerns about layoff announcements from
large employers. The Department of Labor suspended monthly employment reports
when the government shutdown began October 1. ADP reported private employers
added 42,000 workers in October. The unemployment rate stood at 4.3% in
August. The rate has remained stable because the labor pool is contracting
due to baby boomer retirements and reduced immigration under Trump
administration policies. Art Papas of Bullhorn disputes the AI explanation
and argues companies are recalibrating after pandemic overhiring.

Read more of this story at Slashdot.

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