๐Ÿ“ˆ TKer by Sam Ro

๐Ÿ“ˆ TKer by Sam Ro

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๐Ÿ“ˆ TKer by Sam Ro
๐Ÿ“ˆ TKer by Sam Ro
The layoff-less economic slump ๐Ÿ’ช
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The layoff-less economic slump ๐Ÿ’ช

'Employers may be reluctant to shed workers' ๐Ÿ˜€

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Sam Ro, CFA
Jul 06, 2022
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๐Ÿ“ˆ TKer by Sam Ro
๐Ÿ“ˆ TKer by Sam Ro
The layoff-less economic slump ๐Ÿ’ช
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Layoff activity is very low.

Outside a handful of announcements at some high-profile tech companies, layoff activity across the economy remains near record-low levels.

According to Bureau of Labor Statistics (BLS) data released Wednesday, the layoff rate (i.e., layoffs as a percentage of total employment) was just 0.9% in May.

โ€œPrior to the pandemic, the all-time low for the layoff rate was 1.1%,โ€1 Nick Bunker, economic research director at Indeed Hiring Lab, noted. โ€œMay was the 15th straight month the layoff rate was below that level.โ€œ

This might not be what youโ€™d expect with economic data slowing. In fact, the Bureau of Economic Analysis says GDP contracted at a 1.6% rate in Q1, and the Atlanta Fedโ€™s GDPNow model is pointing to a 2.1% contraction in Q2.

โ€œIf the labor market were quickly and suddenly taking a downturn, we would see employersโ€™ demand for new hires drop and their willingness to let workers go increase,โ€ Bunker said. โ€œFor now, we arenโ€™t seeing a sudden move in either direction.โ€œ

Employers want to hang on to workers

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