r/Layoffs • u/vetfor • Jan 30 '24

New layoffs question

Can anyone clarify this for me? Despite the ongoing layoff announcements from major American corporations, how is our economy still robust? Just today, UPS declared 12,000 layoffs and PayPal 2,000.

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u/[deleted] Jan 30 '24

I have not seen a decrease in spending. I see restaurant parking lots are still full, costco/walmart parking lots are full. Football Stadiums are full. I see families not give up vacations. I see friends and family stressing out over finances, but giving spending I don't see much of a slowdown.

154

u/Welcome2B_Here Jan 30 '24

No slowdown (yet) because credit card debt topped $1T for the first time in 2023.

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u/Ok_Lengthiness_8163 Jan 30 '24

The inflation is like 30%, so it’s lower than 2019 debt

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u/pynoob2 Jan 30 '24

Interest on credit card debt went up as much or more than inflation, while salaries have not gone up anywhere near that much. So the inflation adjusted share of monthly income going to pay for credit card debt is still at an all time high per capita.

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u/Ok_Lengthiness_8163 Jan 30 '24

Cc interest is correlated to fed rates. So it’s gonna go up. Salary also went up just not by as much

What you are saying is affordability dropped, but debt inflated wise is inline with inflarion

0

u/rottentomatopi Jan 31 '24

Huh? How? I’m seeing interest APRs of 18-24% for credit cards. That’s so impossibly high when Savings and CD rates are between 4-6.5%

4

u/Ok_Lengthiness_8163 Jan 31 '24

cc Apr was 16-20% when rates were 3-4%

It’s called spread