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The U.S. lays off more than one million people, the end of the dollar index
Wonderful introduction:
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Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Market www.xmserving.commentary]: Over one million layoffs in the United States, the end of the US dollar index". Hope this helps you! The original content is as follows:
The latest report released by layoff and placement www.xmserving.company Challenger, Gray & Christmas shows that as artificial intelligence technology accelerates the penetration, www.xmserving.companies have optimized their personnel structures to adapt to industry changes. The number of layoff announcements by www.xmserving.companies in the United States in October has experienced explosive growth. This trend may sow hidden worries for the future development of the labor market.
The number of layoffs soared in October, and the scale for the whole year hit a new high in recent years
Data show that the total number of layoffs by U.S. www.xmserving.companies in October reached 153,074, a sharp increase of 183% from September and an increase of 175% from the same period last year. This value refreshed the record of layoffs in a single month in October since 2003, and also made 2025 the largest year since 2009 when www.xmserving.companies announced layoffs.
Judging from full-year data, www.xmserving.companies have announced a total of 1.1 million layoffs so far, an increase of 65% over the same period last year and the highest level since the 2020 COVID-19 epidemic.
Among them, the total number of layoffs in October set a record for a single month in the fourth quarter since 2008.
Expert interpretation: Disruptive technology is reshaping the landscape, and the negative impact of layoffs in the fourth quarter is highlighted
The www.xmserving.company’s workplace expert and chief revenue officer Andy Challenger said: “Similar to the industry changes in 2003, a disruptive technology is now reshaping the market structure.
< p>He further pointed out that the current number of new jobs has fallen to a multi-year low. Against this background, www.xmserving.companies choose to announce layoffs in the fourth quarter, which will undoubtedly trigger a more negative market reaction.Data background: official data is suspended, and other indicators are divergent
Worth it.What is interesting is that when this report was released, the U.S. government had suspended the collection and release of official data on the labor market due to the shutdown in Washington, D.C., and the report has become an important reference for observing labor market dynamics.
However, monthly layoff data from challenger www.xmserving.companies are highly volatile, and weekly state unemployment claims data have yet to show signs of accelerating layoffs. At the same time, a report from payroll processing www.xmserving.company ADP showed that the U.S. private sector added a net 42,000 jobs in October, reversing the previous two consecutive months of employment decline.
Policy dynamics: The Fed is worried about the weakening labor force, and interest rate cut expectations are rising
This layoff report www.xmserving.comes at a time when Federal Reserve officials have expressed concerns about the weakening labor market.
Fed Governor Milan said that he still believes that labor demand is not as strong as we expect.
The Federal Reserve has lowered its benchmark interest rate twice since September, and the market is generally expected to approve another 25 basis point interest rate cut in December. Although the impact of Powell's speech has dropped significantly recently, it is still 62%. Policymakers hope to respond to possible economic risks in advance through forward-looking measures.
Industry distribution: The technology industry has become the hardest hit area, with layoffs increasing in many fields
From the perspective of industry distribution, affected by the business restructuring caused by the integration of artificial intelligence, the technology industry has become the hardest hit area by layoffs.
Data show that the industry announced 33,281 layoffs in October, almost six times that of September.
In addition, the number of layoffs in the consumer goods industry increased to 3,409; non-profit organizations severely affected by the government shutdown have laid off a total of 27,651 people so far this year, an increase of 419% from the same period in 2024.
Trend analysis: Multiple factors are driving corporate retrenchment, and www.xmserving.competition for job seekers in the labor market will intensify
Andy Challenger analyzed: “Some industries are entering a period of adjustment after the recruitment boom during the epidemic, and the widespread application of artificial intelligence, weak consumer and corporate spending, and operational Rising costs and other factors are driving www.xmserving.companies to tighten their belts and freeze recruitment.
" He further said that it is more difficult for laid-off workers to quickly find new jobs. This phenomenon may further aggravate the overall labor supply side of the labor market, that is, there will be more job seekers and jobs will become more difficult to find.
Summary:
Objective data shows that as layoffs intensify, the U.S. job market is deteriorating, the job supply is decreasing, and the number of job seekers is increasing. These are precursors to the deterioration of the U.S. labor market. These pressures on the job market will cause the market to bet on the Federal Reserve cutting interest rates, thus suppressing the U.S. dollar index.
But if the market continues to recognize the AI narrative, U.S. stock technology www.xmserving.companies continue to tell good stories, and the reports continue to look good, the U.S. dollar index may be boosted by the U.S. AI narrative, because the underlying logic of the U.S. dollar index represents the overall national strength of the United States.
After the U.S. dollar index broke through the rising wedge, it rose at 100.45It stopped before the amplitude, and currently fell below the 5-day line and the 100 integer mark, a decrease of 0.41%.
The above content is all about "[XM Foreign Exchange Market www.xmserving.commentary]: Over one million layoffs in the United States, the end of the US dollar index". It was carefully www.xmserving.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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