A monthly report on the number of announced corporate layoffs. It is not adjusted for seasonal variations. The report indicates trends in the labor market. These statistics on layoffs help us gauge the strength of the job market.
Fewer layoffs suggests more people have jobs.
Every job comes with an income, which gives a household spending power. Spending greases the wheels of the economy and keeps it growing, so the stronger the job market, the healthier the economy. There's a downside to it, though, which is relevant these days. When few people are looking for jobs, businesses can have a tough time finding new workers. They might have to pay overtime to current staff, use higher wages to lure people from other jobs, and in general spend more on labor costs because of a shortage of workers.