Increased layoffs and hiring halts in the United States; Fear of stagnation

According to the latest data from the Bureau of Labor Statistics (BLS) announced this Thursday, the number of jobless claims in the United States fell last week to 231 thousand, two thousand less than the previous week, when the unemployment rate reached. It is still at 3.6 percent.

Cutbacks and fear of layoffs are already starting to emerge in other sectors, such as real estate or banking.

Streaming platform Netflix and real estate companies Redfin and Compass are among the US companies announcing layoffs this month, while tech companies such as Uber, Meta and Microsoft will cut their hiring as inflation rises and fears of a recession.

After a decade-long boom, most of the tech-related startups that went public in the past two years now see their shares heading into the red.

It is dealing with a second round of layoffs at Netflix, which in May laid off 150 more employees after its shares plunged after it admitted to investors that its growth had stalled.

For their part, banks traditionally tend to increase hiring in boom times and resort to layoffs when the market is down.

“When banks have a revenue problem, they have only one way to respond: by cutting costs,” said David McCormack, president of staffing firm DMC Partners.

Last month, JPMorgan Chase Chairman Daniel Pinto said bankers were facing a “very challenging environment” and their rates were headed for a 45 per cent drop in the second quarter.

Cryptocurrency exchange Coinbase announced this month that it will lay off about 1,100 people, 18% of its workforce, to coincide with the collapse of the cryptocurrency and warn of a possible recession that could lead to a “crypto winter.”

For his part, its boss, CEO Jamie Dimon, warned investors this month that an economic “hurricane” was brewing and said the bank was preparing for volatile markets.

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