DOGE job cuts are appearing in some, but not all, labor market data
Published On Mar 6, 2025, 11:14 AM
Job cuts linked to Elon Musk's Department of Government Efficiency (DOGE) have spiked, with February seeing a surge to over 172,000 layoffs, the highest since July 2020. This represents a 245% month-over-month increase, indicating significant impact on the labor market, driven primarily by DOGE's actions and struggles within the retail sector. The current unemployment rate stands at 4%, but estimates suggest it could rise to 4.3% if layoffs continue at a high rate. Economic experts see the hiring environment as bleak, leading to worries about a potential rise in unemployment due to these government-related job cuts, although their immediate impact on jobs reports is yet to be seen.
Stock Forecasts
SPLV
Negative
The significant increase in layoffs could lead to concerning economic indicators, potentially impacting consumer confidence and spending. As people become unemployed, consumer spending may decline, which can negatively affect businesses and overall market performance.
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