Everyday news of shocking layoffs is haunting the media. Mass layoffs are becoming common majorly in tech companies like Twitter, Meta, Amazon, Google, and more. According to Layoffs.fyi data, 50,000+ workers in the tech industry lost their jobs in November, up from 12,600 in October.

However, the general layoffs percentage remains historically low. 2022 roundoff, the monthly layoff rate has hovered around 1 percent of the workforce, which compared to the pre-pandemic era, is even lower.

If the layoff numbers are so low compared to the previous layoff percentage then why does the impact feel much higher? Because it’s the household name companies that are covered by the mainstream media. The reason, why these layoffs are so highlighted, is that it is not about the people affected but rather about the industry and companies. These companies are market giants, they are loud and public, which is why their news is loud and public.

Jobs Layoffs are in every headline, but no one is focusing on the fact that it does not represent the overall job market.

Companies like Google, Meta, and Twitter got a lot of attention not because of their customer reach but because of their abrupt and out-of-blue announcements.

It is important to understand that tech layoffs do not account for the overall job market. According to Labor Department data, statistically, there are 1.7 job openings for every unemployed person. Then why do tech layoffs are giving the market and employment sector a chill?

Even with a small percentage, tech layoffs have an inflated effect on worker sentiment. According to ZipRecruiter’s latest job-seeker confidence index, only 4% of job seekers recently worked in the technology sector, yet, about 20% of job-seekers want to work in the tech sector.

Tech layoffs have an oversized influence because even workers from other industries are looking for a way to find a job in the tech sector for a better and higher pay scale and benefits. And after looking as the opportunities shrink in the industry is enough to give the public a chill.

However, looking at the continued resilience of the job market, consumer demand, and economic headwinds, business and finance experts agree that mass layoffs will not hit the labor market anytime soon.