Amid a growing wave of corporate layoff announcements, the number of Americans filing for first-time jobless benefits rose to 260k last week (moving its 4-week average to the highest in 8 months). More problematically, continuing claims is now starting to roll notably higher at 1.416mm – the highest since April.
Source: Bloomberg
Connecticut, Oklahoma, and California saw the biggest rise in jobless claims; while Massachusetts, Kentucky, and Ohio saw the biggest drop in claims…
Jobless claims are now completely decoupled from the headlines payrolls data…
Source: Bloomberg
This matches the decoupling seen between the establishment and household surveys…
Source: Bloomberg
Notably, Andrew Challenger, Challenger, Gray & Christmas’ senior vice president, said in statement that:
“the job market remains tight, and large-scale layoffs have not begun. There are some indicators that hiring is slowing after months of growth, however.“
However, a quick glance down headlines shows at least 12 big companies that have announced layoffs within the last 2 weeks…
#1 Ultratec Inc. says that it will be laying off more than 600 workers.
#2 Electric truck maker Rivian will be laying off approximately 840 workers.
#3 7-Eleven has announced that it will be eliminating 880 corporate jobs.
#4 Shopify is laying off about 1,000 people.
#5 Vimeo says that it will be eliminating 6 percent of its current workforce.
#6 Redfin will be reducing the size of its workforce by 8 percent.
#7 Compass will be reducing the size of its workforce by 10 percent.
#8 RE/MAX will be reducing the size of its workforce by 17 percent.
#9 Robinhood will be reducing the size of its workforce by 23 percent.
#10 It is being reported that Ford “is preparing to cut as many as 8,000 jobs in the coming weeks”.
#11 Geico has closed every single one of their offices in the state of California, and that will result in vast numbers of workers losing their jobs.
#12 Walmart is eliminating about 200 corporate jobs as it contends with rising costs, bloated inventories and weakening demand for general merchandise.
But it’s not a recession remember!
All eyes on tomorrow morning’s big jobs print.
