From red-hot inflation to a strong jobs market, and all the negative gross domestic product in between, economists are divided on the health of the U.S. economy. A top concern for Americans: Are there layoffs on the horizon? Economists break down the data and economic indicator complexities brought upon by the Covid pandemic and the war in Europe. More corporate leaders are anticipating a recession, according to a survey from Stifel. 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 forces 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. "I think it's very important to look at the number of job openings," Julia Pollak, chief economist at ZipRecruiter, told CNBC. "The question is how steeply they will fall, how sharply they will fall, if they go back to 7 million [job openings], the level before the pandemic." Not to mention, the labor market is 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. Federal Reserve Chairman Jerome Powell said it will be a challenge "to return to an environment of stable prices without sacrificing the economic gains of the past two years" during a question-and-answer session at the Cato Institute, a Washington, D.C.-based think tank, earlier this month. 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. » Subscribe to CNBC: » Subscribe to CNBC TV: About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #cnbc Will This Recession See Massive Layoffs?...(read more)
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The ongoing COVID-19 pandemic has led to a global economic downturn, causing uncertainty about the future of businesses and jobs. The question that looms large in everyone's mind is whether this recession will see massive layoffs. The answer to this question is not straightforward. While many companies have already announced layoffs, others have resorted to cutting back on employee salaries and benefits. Moreover, some industries such as healthcare and technology have seen a surge in demand, leading to an increase in hiring. However, there are some industries that have been hit hard, such as travel, hospitality, and retail. Many companies in these sectors have been forced to shut down, leading to significant job losses. For example, airlines have seen a massive decline in demand, leading to thousands of layoffs, furloughs, and pay cuts. Similarly, hotels and restaurants have suffered due to the restrictions on travel and social distancing measures, leading to job losses. Even in other industries, small businesses have been disproportionately affected. Many of them have been unable to withstand the economic shock, leading to the closure of their businesses and job losses. The uncertainty surrounding the pandemic and its duration makes it difficult to forecast the extent of job losses. However, experts predict that unemployment rates could remain high for a while. Moreover, the impact of job losses is not just limited to the individuals who lose their jobs but also affects the economy as a whole. Reduced consumer spending due to unemployment can lead to a further decline in demand for goods and services, leading to more layoffs and a vicious cycle. The governments worldwide have introduced measures such as stimulus packages and loans to support businesses and individuals. However, it remains to be seen whether these measures will be enough to prevent massive layoffs. In conclusion, the COVID-19 pandemic has had a significant impact on the economy, leading to job losses in some sectors. While the extent of layoffs is uncertain, governments and businesses must work together to support those affected and prevent long-term damage to the economy. https://inflationprotection.org/can-we-expect-enormous-layoffs-during-this-recession/?feed_id=88019&_unique_id=643a9006bf98d #Inflation #Retirement #GoldIRA #Wealth #Investing #august2022 #business #careergrowth #CNBC #economic #economicreopening #economist #economy #employees #fed #federalreserve #financenews #financialnews #FOMC #gdp #greatresignation #Health #Hiring #hybridwork #indicator #inflation #interestrates #Janetyellen #job #jobopenings #jobs #labor #layoff #layoffs #market #Powell #quietquitting #quitting #ratehike #recession #remotework #Safety #shortage #thegreatresignation #turnover #unemployment #WorkFromHome #workoffice #workers #workforce #RecessionNews #august2022 #business #careergrowth #CNBC #economic #economicreopening #economist #economy #employees #fed #federalreserve #financenews #financialnews #FOMC #gdp #greatresignation #Health #Hiring #hybridwork #indicator #inflation #interestrates #Janetyellen #job #jobopenings #jobs #labor #layoff #layoffs #market #Powell #quietquitting #quitting #ratehike #recession #remotework #Safety #shortage #thegreatresignation #turnover #unemployment #WorkFromHome #workoffice #workers #workforce
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