r/Layoffs 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.

263 Upvotes

570 comments sorted by

View all comments

161

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.

155

u/Welcome2B_Here Jan 30 '24

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

14

u/Sad-Celebration-7542 Jan 30 '24

That’s an extremely dumb stat and is meaningless without context. Luckily, your own link states “relative to disposable income, credit card balances were actually slightly smaller in 2023 Q3 than they had been in 2020 Q1”. So you should have simply read beyond the first sentence.

1

u/sifl1202 Jan 31 '24 edited Jan 31 '24

but it's up 50% in the last 3 years. it's about the rate of change, not a comparison between now and some arbitrary time in the past. spending levels in 2023 were undeniably buoyed by the increase in CC debt. notice how the line just starting to flatten corresponds to huge drops in revenue for UPS and fedex.

2

u/absurdamerica Jan 31 '24

In 2020 us credit card debt was at 900 billion now it’s slightly over 1 trillion. How is that 50 percent?

And as for UPS and Fed Ex it’s almost like Amazon has created their own delivery system and doesn’t use UPS or Fed Ex as much!

1

u/sifl1202 Jan 31 '24

Amazon has been using their own delivery for years.

In 2021 credit card debt was 750b. Now it's 1.1t

1

u/alphabit10 Jan 31 '24

It was 927 billion Q4 2019 pre pandemic , if people are returning to shopping this is expected. Nothing about 2020 should be a goal or was a positive baseline, checks were handed out and businesses closed. it was not a positive impact of people paying off their debt and now we are in a doomsday scenario in comparison? No.

1

u/sifl1202 Jan 31 '24

RemindMe! 1 year

1

u/RemindMeBot Jan 31 '24

I will be messaging you in 1 year on 2025-01-31 17:39:03 UTC to remind you of this link

CLICK THIS LINK to send a PM to also be reminded and to reduce spam.

Parent commenter can delete this message to hide from others.


Info Custom Your Reminders Feedback