As the new economy has cooled, there has Been a steady drumbeat of layoff announcements. M

ore than 36,000 dotcom employees were cut in the second half of last year, including some 10,000 last month. But th6 firings went well beyond dotcomland. There were more than 480,000 layoffs through November. General Motors is laying off 15,000 workers with the closing of Oldsmobile. Whirlpool is trimming 6,300 workers; Aetna is letting go 5,000.

The remarkable thing is that US unemployment has so far stayed strikingly low. While the NASDAQ plunged and growth trailed off last year, the unemployment rate fluctuated between 3.9% and 4.1%. That pales compared with the unemployment rates during Old Economy dark years like 1992 (7.5%) and 1982 (9.7%).

And it gives the lie to an Old Economy article of faith--that there was a "natural rate of unemployment below which the economy could not operate without spurring inflation". The supposed natural rate: just under 6%.

How to account for the strong jobs picture？ In part it's because of the tight labor market of the New Economy. Employers fought hard during the expansion to recruit and retain skilled workers. They are not looking to slash their payrolls unless they think a major recession is coming--because they know how much time and effort went into building their work forces.

There is also more worker "churning" going on. Employees are losing their jobs for economic reasons, but they're generally finding new work quickly. The latest rite of the Internet world is the "pink-slip party" for those just let go. Dotcommers go to commiserate and often come away with new job offers. Job churning makes the economy more efficient: it directs workers to the positions where they are most useful. But it comes at some psychic cost to employees and weakens the social fabric. Workers who shift from job to job do not have the security, or form. the same workplace bonds, which corporate long-timers did in the Old Economy.

Why does GM cut down 15,000 employees？

A．Because the labor conflicts with the management.

B．Because the other companies lay off their employees.

C．Because it has lost its credits in the world.

D．Because the global economy declines.