The Jobs Report Shows a Labor Market in Big Trouble

"The US labor market lost 105,000 jobs in October and gained 64,000 jobs in November."

"Most likely they're going to be revised downward and most likely heavily. As a matter of fact, even Jerome Powell, who's the chair of the Federal Reserve, recently said that most likely these job figures are being drastically overstated. Powell said that he suspects that the job numbers are overstated by as much as 60,000 jobs per month."

"the rate of unemployment has now jumped up to 4.6%."

"Wages are growing at a rate of 3.5%. And currently, the rate of inflation is around 6%. That means that wages are not keeping up with inflation. This means that most Americans continue to see pay cuts in 2025."

"if you're not getting a 6% raise, then you are accepting a pay cut. So I just want you to keep this in mind because when it comes time to negotiate your compensation, anything over 6%, a 6% raise would technically be considered a true raise."

"However, the thing is that I expect the rate of inflation to sharply accelerate in 2026. Because you have to remember that the Federal Reserve has turned the money printers back on as of last Friday."

"So, the money supply has been growing at an annualized rate of approximately 5% recently. But now, I mean, we have the situation where the money printers are turned back on and interest rate cuts have been happening in Q4 and there's going to be more money loaned into existence and we're going to be closer to 6% as of right now."

"From January to November, job cuts are up by 54% year-over-year, which is stunning. From January 2025 through November of 2025, employers have announced 1,170,821 job cuts. Again, that's up by 54% compared to January through November of 2024."

"So AI which was cited for 6,280 job cuts in November. AI has been responsible for 54,694 job cuts this year in 2025."

"And at number one, the industry that's been hit the hardest in November has been telecommunications."

"Before the release of this jobs report, there was a 24.4% chance that the Federal Reserve would cut interest rates at that January meeting. Now, after the release of the jobs report, the odds did not change. They stayed exactly the same... as of now, the odds still stand at a 24.4% chance of rate cuts at the January meeting."

"at the last Federal Reserve meeting, they released their projections in their SEP. their summary of economic projections and they forecasted that they're only going to cut interest rates one time next year in 2026 by just 0.25%."

"But then again, as I mentioned in my previous video, the new Fed chair comes into power in May of 2026 and most likely they're going to cut interest rates by more than just 0.25% for the entirety of 2026."