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๐Ÿ’ผ How Layoffs and Falling Consumer Spending Affect the Macro Economy Thumbnail

๐Ÿ’ผ How Layoffs and Falling Consumer Spending Affect the Macro Economy

๐Ÿ’ผ How Layoffs and Falling Consumer Spending Affect the Macro Economy

Layoff announcements are ramping up as companies adjust to slowing sales and profitability. So far, significant job cuts have been concentrated in technology and consumer-related industries due to overhiring during the pandemic recovery when demand was extreme. Whether this spills into the broader economy is the subject of debate among investors and economists. With markets already expecting a mild recession in 2023, how should long-term investors maintain perspective on this topic over the next year?

We discuss in this episode of The Wealth Effect Podcast:
๐Ÿ“Š  GDP Growth Components
๐Ÿ’ผ  Job Gains by Sector
๐Ÿ“ˆ  Household Debt Service Levels


Matt Faubion, CFPยฎ

Founder - Wealth Manager

Show notes and charts:

The economy has slowed over the past year

Job gains have slowed with sectors such as Info Tech experiencing layoffs

Household debt service is growing

The bottom line: While layoffs are challenging for individuals, investors should maintain balance as the effects of overexpansion within sectors and higher interest rates across the economy play out. History shows that these periods often set the stage for future business cycles.

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