Rebel Capitalist News WARNING: New Labor Market Data Worst Since 2009
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Feb 6, 2026 They dig into a sharp surge in announced job cuts, comparing current totals to 2009 levels. Sector pain in transportation, tech and construction gets highlighted. The collapse in new hiring plans and contradictions between GDP growth and labor metrics are explored. Conversation centers on why firms overhired and the fallout for the labor market.
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January Job Cuts Hit 2009 Levels
- Challenger, Gray & Christmas reported 108,000 U.S. job cuts in January, the highest January total since 2009. This marks a 118% year-over-year increase and a 205% rise from December.
Transport Cuts Signal Falling Goods Demand
- Transportation led industry cuts, signaling weaker movement of goods across the economy. Fewer shipments imply demand softness inconsistent with strong GDP growth.
Amazon's Bullwhip Hiring And Layoffs
- George recounts Amazon's post-lockdown hiring boom and subsequent layoffs as a bullwhip effect example. Amazon cut 16,000 jobs in January after overhiring during the pandemic-driven surge.