Tech layoffs are not a bellwether for broader cuts in other industries, Morgan Stanley analysts say. Despite large-scale tech layoffs, the broader labor pool is not in true danger yet, given that staffing levels remained below pre-pandemic levels for some time, a Morgan Stanley research note said.

Even with a growth slowdown, the number of tech layoffs is minute compared with the larger employment pool, the research report stated.

Executives should expect further attention on operating expenses and hiring levels from investors in the coming quarters, analysts said, and should be scrupulous about expenses.

The analysts said the large market cap of tech firms and “idiosyncratic” hiring in tech relative to the rest of the labor market have resulted in tech layoffs having an outsized impact on perceptions.