Initial Jobless Claims Hit 8 Month Highs, Continuing Claims Jump Ahead Of Payrolls Print
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.
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...
This matches the decoupling seen between the establishment and household surveys...
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.