ANALYSIS: US Firms Start Cutting Pay, Laying Off Staff as Labor Market Cools

Goldman Sachs lays off workers and Walmart cuts pay in changing U.S. labor market.

Cashiers process purchases at a Walmart Supercenter in North Bergen, N.J., on Feb. 9, 2023. Eduardo Munoz Alvarez/AP Photo/File

In recent months, the red-hot U.S. labor market has shown signs of cooling down as rising interest rates and easing economic conditions weigh on the jobs arena.

While it’s a positive development for the Federal Reserve and its inflation-fighting campaign, it isn’t a suitable development for workers facing an elevated cost of living—from ballooning prices to soaring costs of borrowing.