Submitted by acneadjr t3_10of7z0 in wallstreetbets
BugTotal6212 t1_j6fo8wh wrote
The tech layoffs would have decent severance. So wouldn't that be a lagging indicator for jobless claims and unemployment rate which would lag more?
acneadjr OP t1_j6fpe70 wrote
Without a question, unemployment is a lagging indicator. I need to study how the data is collected, when unemployment is counted, and what other sources there are to check against the department of labor.
I also believe companies have shied away from layoffs in favor of cutting Cap Ex to meet earnings estimates. In Tech most labor is Cap Ex. When non-Tech starts to cut Op Ex we will see larger waves of layoffs.
If I am right about Cap Ex being the cost savings measure for companies in this Quarter, then it may make it harder for those companies to switch on growth again.
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