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Companies Are Gritting Their Teeth and Hiring

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Heard on the Street: A lot of businesses are worried about where the economy is headed. And yet they still are looking to hire more workers.

There were a seasonally adjusted 1.4 million layoffs and discharges in November. That was about even with October and up just a bit from November 2021’s 1.3 million. In the year before the pandemic, when the job market was plenty strong, there was an average of about 1.8 million layoffs a month. Moreover, Wednesday’s report showed that the number of workers quitting their jobs in November remained elevated—an indication that people are finding job opportunities elsewhere.

The recent headlines about tech layoffs don’t seem to match broader economic indicators, which show a strong job market and a historically low unemployment rate. WSJ’s Gunjan Banerji explains the disconnect. Illustration: Ali Larkinmonthly manufacturing report , which also came out Wednesday. The ISM’s index of manufacturing activity came in at 48.4 for December, down from November’s 49. Anything below 50 indicates factory output is contracting. But an employment subindex within the report rose to 51.4 last month from 48.4—an indication that even as manufacturers became gloomier, they stepped up hiring.

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