November 4, 2022, 12:50 pm EDT
Hiring Stayed Strong. Really?
October non-farm payroll reported an increase of 261K jobs which is better than the forecasted 200K numbers. But, is this number really strong as other media commented?
It could be higher than the pre-pandemic average of a little below 200K. But, looking at the featured bar chart for the past 12 months we can see a consistent downtrend all the way. 261K is the new low of the jobs market.
In addition, massive layoffs of 50% cut in Twitter just happened this morning about 3,700 positions were to be eliminated. Moreover, Stripe, Lyft, Chime, and many other tech companies cut more people from the payrolls. Amazon, Google, Apple, and Meta Platform may begin their hiring freeze which is the signal before potential layoffs.
We anticipate the job market is going to deteriorate further in the bear markets. Consumers will tighten their belts for months to come.