Why layoffs may be on the horizon in the U.S.

From red-hot inflation to a strong jobs market, and all the negative GDP in between, economists are divided on the health of the U.S. economy. A top concern for Americans: Are there layoffs on the horizon?

"There are going to be more layoffs. So, you need to be wary of that," Mark Zandi, chief economist at Moody's Analytics, told CNBC.

Big companies are already announcing layoffs, including Best Buy, Ford Motor, HBO Max, Peloton, Shopify, Walmart and Wayfair.

Meanwhile, a survey from PwC shows 50% of firms expect to reduce their labor force in the next six to 12 months.

This comes at a time when the labor market could hardly appear stronger. In July 2022, there were 11.2 million job openings, revealing a shortage of workers for available positions.

Not to mention, the labor market is still facing off against the "Great Resignation." In July, 6.4 million people got new jobs while another 4.2 million quit jobs.

"The Federal Reserve is raising interest rates at this point in an effort to slow down the job market, and that's going to mean more layoffs," Zandi said.

Watch the video above to learn more about how the U.S. defines a recessionary period in the economy, what common economic indicators are revealing and what may happen next in the labor market.