About 130,000 people have been dismissed from their jobs at large tech and media companies in the past 12 months. Why?

These layoff announcements have become depressingly common, even rote. But they’re also kind of mysterious. The overall unemployment rate in the U.S. is 3.5 percent, which ties the lowest mark of the 21st century.

In the 2010s, the labor market was weak, and the tech sector was growing. During the coronavirus pandemic, the U.S. economy experienced a flash-freeze depression, and the tech sector was booming. Today, the U.S. labor market seems, by some measures, quite strong, and yet the tech and media industries are bleeding. What’s going on? And what does this inversion of 21st-century norms tell us about the state of the economy?

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