The latest labor data from the Challenger report presents a bleak picture of the US jobs market. This morning on The Call @ Hedgeye, Hedgeye CEO Keith McCullough and Financials analyst Josh Steiner discussed the significant rise in layoffs and softening of the labor market.
“This August, excluding August of 2020, due to COVID, was the highest August for layoffs since 2009,” said Steiner. Moreover, year-to-date hiring has plummeted to a 19-year low.
Despite the clear data, mainstream media outlets like CNBC appear reluctant to report on the true state of the labor market (as they continue to push for rate cuts). “You can quite literally turn that on and listen to absolute unequivocal lies and bullshit,” said McCullough.
“The setup here is very interesting,” he continued. “When it gets to game time, I call it a coin toss on Powell cutting by 25 instead of 50. If he does that, after all this happens, that puts big blowup risk into the equity market.”
The numbers don’t lie. Layoffs are surging, hiring is at a historic low, and the implications for monetary policy and the equity markets are critical. Subscribe to The Call @ Hedgeye and stay ready for every outcome.
