Pages

Showing posts with label Unemployment. Show all posts
Showing posts with label Unemployment. Show all posts

Monday, December 08, 2025

U.S. Layoffs Poised to Surpass Great Recession Levels: On Track for the Worst Since the Great Depression




U.S. Layoffs Poised to Surpass Great Recession Levels: On Track for the Worst Since the Great Depression

The United States may be approaching a historic inflection point in labor markets. Layoffs are accelerating across sectors at a pace that threatens to exceed even the darkest years of the 2008–09 Great Recession—placing today’s job losses on a trajectory not seen since the Great Depression of the 1930s.

This is not a normal cyclical slowdown. Nor is it a temporary post-pandemic correction. What is unfolding appears to be a structural reset of how work is priced, performed, and valued in the modern U.S. economy.


A Crisis Hiding in Plain Sight

Official unemployment figures often lag reality. They smooth out pain across months, masking mass terminations behind statistical averages. Layoff announcements, however—especially large, sudden, and concentrated ones—tell a more immediate story.

That story is grim.

Unlike the Great Recession, when layoffs were heavily concentrated in housing, construction, and finance, today’s job losses are broad-based:

  • Technology: Once seen as recession-proof, tech has shed hundreds of thousands of jobs through rolling “rightsizing” waves.

  • White-collar services: Consulting, media, marketing, legal services, and professional support roles are shrinking rapidly.

  • Retail and logistics: Slowing consumer demand and automation are hitting employment simultaneously.

  • Manufacturing: Even firms benefiting from reshoring trends are cutting labor through automation and productivity drives.

What makes this moment uniquely dangerous is not just the scale—but the irreversibility of many of these cuts.


Why This Is Different From 2008

The Great Recession was triggered by a financial system collapse. Credit froze. Demand evaporated. Once the system stabilized, many jobs came back.

Today’s layoffs are driven by deeper forces:

1. AI and Automation Are Permanent

Many eliminated roles are not coming back because machines now do the work:

  • Software replaces junior coders

  • AI tools replace analysts, researchers, copywriters, and support staff

  • Automation replaces middle managers and coordinators

This is not a downturn. It is technological displacement.

2. Overhiring Was Not the Real Problem

The popular narrative claims companies simply “overhired” during the pandemic. But that explanation fails to justify:

  • Multiple layoff rounds at the same firms

  • Layoffs continuing even as profits rise

  • Job cuts in sectors unrelated to pandemic demand

The truth is harsher: companies are relearning how few humans they actually need.

3. Globalization No Longer Absorbs the Shock

In past downturns, offshoring helped companies survive while preserving overall employment levels globally. Today, geopolitics, tariffs, friend-shoring, and supply-chain nationalism are reducing that safety valve.

The pressure lands directly on workers.


The Psychological Recession

Even beyond raw numbers, the labor market is experiencing something more corrosive: fear.

Workers are:

  • Staying in bad jobs to avoid risk

  • Accepting lower wages or worse conditions

  • Delaying life decisions—homes, children, businesses

This fear suppresses consumer demand, which leads to further layoffs, creating a self-reinforcing downward spiral reminiscent of pre-New Deal America.

In the Great Depression, unemployment peaked near 25%. But the damage wasn’t just unemployment—it was loss of confidence in the future. That same psychological fracture is now reappearing.


Why the Great Depression Comparison Is No Longer Hyperbole

Comparisons to the Great Depression were once taboo—viewed as alarmist or irresponsible. Increasingly, they are analytical.

Key similarities are emerging:

  • Structural job loss, not cyclical layoffs

  • Technological transformation outpacing social safety nets

  • Extreme inequality, where profits and productivity rise while labor collapses

  • Policy paralysis, as institutions designed for 20th-century economics struggle to respond

The U.S. entered the Great Depression with tractors replacing farm labor. Today, it enters a similar moment with AI replacing cognitive labor.

Different tools. Same outcome.


What Comes Next?

If current trends continue, the U.S. faces several possible paths:

1. A Slow-Motion Employment Collapse

Layoffs continue in waves, normalized as “efficiency,” until a permanently smaller workforce becomes the new baseline.

2. Social and Political Backlash

Historically, mass unemployment fuels extremism, populism, and institutional distrust. The risk is not theoretical—it is historical.

3. A Rethink of Work Itself

This crisis may finally force serious discussions about:

  • Universal basic income

  • Shorter workweeks

  • Decoupling survival from employment

  • New definitions of productivity and value

The Great Depression gave birth to Social Security, labor rights, and modern regulation. This crisis may demand an equally bold reinvention.


Conclusion: A Turning Point, Not a Temporary Slump

If U.S. layoffs do indeed surpass Great Recession levels—and remain on track toward Great Depression-scale disruption—this will mark the end of an era, not just a bad economic cycle.

The post-World War II assumption that each generation will have more jobs, better pay, and greater security than the last is breaking down.

What replaces it is still unclear.

But one thing is certain:
This is not a normal recession. It is a reckoning with the future of work itself.






अमेरिका में छंटनियाँ ग्रेट रिसेशन को भी पीछे छोड़ने की ओर

ग्रेट डिप्रेशन के बाद सबसे बुरा दौर बनने की आशंका

संयुक्त राज्य अमेरिका का श्रम बाज़ार संभवतः एक ऐतिहासिक मोड़ पर खड़ा है। विभिन्न क्षेत्रों में छंटनियाँ जिस तेज़ी से बढ़ रही हैं, वे 2008–09 के ग्रेट रिसेशन (महामंदी) के सबसे बुरे वर्षों को भी पार करने की ओर बढ़ रही हैं—और संकेत मिल रहे हैं कि यह स्थिति 1930 के दशक की ग्रेट डिप्रेशन (महामंदी) के बाद सबसे गंभीर हो सकती है।

यह कोई सामान्य आर्थिक मंदी नहीं है।
और न ही यह महामारी के बाद का अस्थायी सुधार है।
जो सामने आ रहा है, वह आधुनिक अमेरिकी अर्थव्यवस्था में काम की कीमत, प्रकृति और आवश्यकता का एक संरचनात्मक पुनर्गठन है।


सबकी नज़रों के सामने छिपा संकट

आधिकारिक बेरोज़गारी आँकड़े अक्सर वास्तविकता से पीछे रह जाते हैं। वे महीनों में औसत बनाकर दर्द को छिपा देते हैं। इसके विपरीत, अचानक और बड़े पैमाने पर घोषित की गई छंटनियाँ तुरंत सच्चाई उजागर कर देती हैं।

और वह सच्चाई चिंताजनक है।

ग्रेट रिसेशन के दौरान छंटनियाँ मुख्यतः रियल एस्टेट, निर्माण और वित्तीय क्षेत्रों तक सीमित थीं। लेकिन आज की स्थिति अलग है—आज की छंटनियाँ लगभग हर क्षेत्र में हो रही हैं:

  • टेक्नोलॉजी: जिसे कभी मंदी-प्रूफ माना जाता था, वहाँ लगातार “राइटसाइज़िंग” के नाम पर लाखों नौकरियाँ खत्म हो चुकी हैं।

  • व्हाइट-कॉलर सेवाएँ: कंसल्टिंग, मीडिया, मार्केटिंग, कानूनी सेवाएँ और प्रोफेशनल सपोर्ट रोल तेज़ी से घट रहे हैं।

  • रिटेल और लॉजिस्टिक्स: घटती उपभोक्ता मांग और ऑटोमेशन एक साथ चोट कर रहे हैं।

  • मैन्युफैक्चरिंग: रीशोरिंग से लाभ उठाने वाली कंपनियाँ भी उत्पादकता बढ़ाने के नाम पर कर्मचारियों की संख्या घटा रही हैं।

इस दौर को ख़तरनाक बनाने वाली बात सिर्फ़ छंटनियों की संख्या नहीं है—बल्कि यह तथ्य है कि इनमें से कई नौकरियाँ हमेशा के लिए खत्म हो रही हैं।


2008 से यह दौर अलग क्यों है

ग्रेट रिसेशन का कारण वित्तीय प्रणाली का ढहना था। कर्ज़ रुक गया, मांग गिर गई। हालात सुधरने पर कई नौकरियाँ वापस आईं।

लेकिन आज की छंटनियाँ कहीं गहरे कारणों से हो रही हैं:

1. AI और ऑटोमेशन स्थायी हैं

आज हटाई जा रही कई भूमिकाएँ इसलिए वापस नहीं आएँगी क्योंकि मशीनें अब वही काम कर रही हैं:

  • जूनियर कोडर्स की जगह सॉफ्टवेयर

  • एनालिस्ट, रिसर्चर, कॉपीराइटर और सपोर्ट स्टाफ की जगह AI टूल्स

  • मिडिल मैनेजमेंट की जगह ऑटोमेटेड सिस्टम

यह मंदी नहीं—तकनीकी विस्थापन है।

2. “ओवरहायरिंग” असली वजह नहीं

यह कहना कि कंपनियों ने महामारी के दौरान ज़्यादा लोगों को रख लिया था, अधूरा सच है। यह इस बात की व्याख्या नहीं करता कि:

  • एक ही कंपनी में कई दौर की छंटनियाँ क्यों हो रही हैं

  • मुनाफ़ा बढ़ने के बावजूद नौकरियाँ क्यों कट रही हैं

  • गैर-कोविड सेक्टरों में भी छंटनियाँ क्यों हैं

कठोर सच्चाई यह है: कंपनियाँ फिर से सीख रही हैं कि उन्हें वास्तव में कितने कम इंसानों की ज़रूरत है।

3. वैश्वीकरण अब झटका नहीं संभाल पा रहा

पिछली मंदियों में आउटसोर्सिंग ने कंपनियों को बचाया। आज भू-राजनीति, टैरिफ, फ्रेंड-शोरिंग और सप्लाई-चेन राष्ट्रवाद ने उस रास्ते को भी सीमित कर दिया है।

नतीजा—सीधा बोझ मज़दूरों पर।


मनोवैज्ञानिक मंदी

आँकड़ों से आगे एक और ख़तरनाक चीज़ पनप रही है: डर

कर्मचारी:

  • खराब नौकरियों में फँसे रह रहे हैं

  • कम वेतन और खराब शर्तें स्वीकार कर रहे हैं

  • घर, परिवार और व्यवसाय जैसे फैसले टाल रहे हैं

यह डर उपभोक्ता मांग को दबाता है, जिससे और छंटनियाँ होती हैं—और एक आत्म-विनाशकारी चक्र बनता है, ठीक वैसा ही जैसा न्यू डील से पहले अमेरिका में था।

ग्रेट डिप्रेशन में समस्या सिर्फ़ बेरोज़गारी नहीं थी—भविष्य में भरोसे का टूटना था। वही दरार आज फिर दिख रही है।


ग्रेट डिप्रेशन की तुलना अब अतिशयोक्ति क्यों नहीं रही

पहले इस तरह की तुलना को डर फैलाने वाला माना जाता था। अब यह विश्लेषण बनती जा रही है।

कुछ समानताएँ स्पष्ट हैं:

  • चक्रीय नहीं, संरचनात्मक नौकरी का नुकसान

  • तकनीक की रफ्तार से पीछे रह गए सामाजिक सुरक्षा तंत्र

  • बढ़ती असमानता—जहाँ उत्पादकता और मुनाफ़ा बढ़ते हैं, लेकिन श्रम सिकुड़ता है

  • नीतिगत जड़ता, जहाँ 20वीं सदी के लिए बने संस्थान 21वीं सदी की अर्थव्यवस्था से निपट नहीं पा रहे

1930 के दशक में ट्रैक्टरों ने खेतों की नौकरियाँ छीनीं।
आज AI दिमाग़ी काम की नौकरियाँ छीन रहा है।

औज़ार अलग हैं। परिणाम समान।


आगे क्या होगा?

अगर मौजूदा रुझान जारी रहते हैं, तो अमेरिका के सामने कुछ संभावित रास्ते हैं:

1. धीमी गति से रोजगार का पतन

छंटनियाँ “एफ़िशिएंसी” के नाम पर सामान्य होती जाएँगी, और एक छोटा स्थायी कार्यबल नया मानक बन जाएगा।

2. सामाजिक और राजनीतिक प्रतिक्रिया

इतिहास बताता है कि बड़े पैमाने पर बेरोज़गारी कट्टरवाद, उग्र राजनीति और संस्थानों पर अविश्वास को जन्म देती है।

3. काम की परिभाषा पर पुनर्विचार

यह संकट शायद मजबूर करेगा गंभीर बहसों के लिए:

  • यूनिवर्सल बेसिक इनकम

  • कम कार्यघंटे

  • जीविका को नौकरी से अलग करना

  • उत्पादकता और मूल्य की नई परिभाषाएँ

ग्रेट डिप्रेशन ने सोशल सिक्योरिटी, श्रम अधिकार और आधुनिक नियमन को जन्म दिया था। यह संकट भी उतने ही साहसिक बदलाव की माँग कर सकता है।


निष्कर्ष: अस्थायी मंदी नहीं, युगांत

अगर अमेरिकी छंटनियाँ सचमुच ग्रेट रिसेशन से आगे निकलती हैं और ग्रेट डिप्रेशन-स्तरीय व्यवधान की ओर बढ़ती हैं, तो यह सिर्फ़ एक बुरा दौर नहीं होगा—यह एक युग का अंत होगा।

द्वितीय विश्व युद्ध के बाद का यह विश्वास कि हर पीढ़ी को अधिक नौकरियाँ, बेहतर वेतन और अधिक सुरक्षा मिलेगी—अब टूट रहा है।

आगे क्या आएगा, यह स्पष्ट नहीं।

लेकिन इतना तय है:
यह सामान्य मंदी नहीं है—यह काम के भविष्य के साथ एक निर्णायक टकराव है।





Monday, June 17, 2019

The US Economy Is In Trouble

The numbers are rosy. The unemployment rate is officially the lowest it has been in 50 years. The stock market is riding high. The growth rate last year was approaching 4% and even now is fairly solid. What could go wrong? Those numbers hide the fragility.

The unemployment numbers are so low because a lot of people have simply stopped looking for work. The actual unemployment rate in the US might be more like 12% or 15%. Nobody really knows. The numbers for low employment are structurally cooked.

The stock market is riding high just like in 2007 the real estate market was riding high. This is the sugar high from stock buyback programs. The super rich, flush with cash, finding no productive use for the money, are simply buying back stocks. The corporate interests are in this vicious cycle. That is further exacerbating inequality.

It feels like the US and the world simply kicked the can further down the road when 2008 happened. No lasting solution was put into place.

The US deficit and debt are real problems. In the depth of 2009, Obama struggled to put together a trillion dollar stimulus package. I think he asked for more but got only 700 billion. These days the US runs a trillion dollar deficit as a matter of fact. What was thought of a big deficit in 2009 these days is simply routine. A massive budget deficit has become business as usual.

The debt is so big and getting bigger, it is not even talked about. It has been archived in the denial file.

No, I am not talking about Trump. He never was the solution. A lot of people who have stopped looking for work were people who thought Trump was it. And then they realized they have been duped. And in shame, they stopped simply looking for work. It is not a good feeling to realize you have been duped.

I am talking about economic theorists and political theorists and thinkers in general. Where are the economic theorists at? Abstract thinkers like Paul Krugman and Raghuram Rajan do show up in the mainstream media. But I don't see them offering solutions. The very paradigm needs to shift. Big thoughts are needed. The band-aid remedies are as misleading as Trump's demagoguery. There is a poverty of imagination.

Maybe it is time to delink the global economy from the dollar. Just like there was a time to delink the dollar from gold. The place of the dollar in the global economy is the very reason why the US runs such large deficits and debts. And those large deficits and debts come up with a price paid for by ordinary Americans. The current arrangement is not a healthy arrangement perhaps. For a national currency to also serve as the global currency is perhaps too much of a burden on that national currency.

Perhaps the WTO needs a new round of negotiations. Trade is a good thing. There is sound economic theory behind trade, still largely undisputed. But maybe the WTO cannot act holier than thou about the resulting inequality. People are not abstract. People are real. Trade perhaps can no longer be delinked from the inequality it creates. Rises in productivity are good. But the resulting inequality is existential. There is a need for a redesign. People are hurting for lack of jobs in the US. People are hurting for jobs in India. Neither the ruling party nor the opposition party, in either case, seem to have any real solutions. In such a scenario the very democracy will get questioned given enough time.

Trump is but the American Boris Johnson who argues for a "hard Brexit." That hard Brexit will turn Britain into the new Greece. But Boris Johnson trades in anger. He does not care. Those who trade in anger and feast on that anger simply want more people angrier. The best case scenario is self-destruction. A bad scenario is large scale destruction. The world avoided a Great Depression in 2008. This time it might be harder to do the same. Back then the leaders were at least talking. This time that "talk" is missing. Irrationality holds sway.

Elizabeth Warren is the only one with a plan. Her wealth tax is that plan. She has not yet linked that to the idea of a Universal Basic Income. Andrew Yang talks about UBI. But that UBI does not stand on sound financial footing yet. He has not linked it to some kind of a wealth tax. Not yet. But even the wealth tax is mere tinkering. It is sound tinkering. It is a start. But a real solution is a much more ambitious redesign. Where are the thinkers at?

Should there be a 2008 style meltdown, and you never know with Trump playing with fire, the US central bank has little to no option left. When the interest rate is already near zero, how do you further cut it? My thought is the Fed will be forced to do a UBI, a quantitative easing for the people. It will be forced to issue new money and simply give it to every American in the form of a direct deposit each month. The Fed will have nowhere else to go. There is no room for interest rate cuts. The banks are already flush with cash, as are the corporations. So it is not lack of cash that is hurting the economy. There is no room for quantitative easing for the banks. The only option left is a quantitative easing for the people.

But that can only go for a few years. A real UBI will have to be designed and implemented as a conscious choice made by elected leaders. The crisis might force the introduction. But there will be a need for a conscious second act.



Friday, August 27, 2010

Faux Recovery?

PRINCETON, NJ - OCTOBER 13:  Princeton Profess...Image by Getty Images via @daylife
Paul Krugman: New York Times: This Is Not a Recovery: this isn’t a recovery, in any sense that matters. And policy makers should be doing everything they can to change that fact...... If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative. ..... All of this is obvious. Yet policy makers are in denial. ...... officials seem loath to admit that the original stimulus was too small..... Obama ..couldn’t pass a supplemental stimulus now. ..... officials could, with considerable justification, place the onus for the non-recovery on Republican obstructionism. But they’ve chosen, instead, to draw smiley faces on a grim picture, convincing nobody. And the likely result in November — big gains for the obstructionists — will paralyze policy for years to come ...... raise its medium-term target for inflation, making it less attractive for businesses to simply sit on their cash .....we’ve already seen the consequences of playing it safe, and waiting for recovery to happen all by itself: it’s landed us in what looks increasingly like a permanent state of stagnation and high unemployment. It’s time to admit that what we have now isn’t a recovery, and do whatever we can to change that situation.
Paul Krugman is one of those guys who I almost always find myself in agreement with. We inhabit the same segment of the political spectrum. And he is an intelligent guy. I felt that even before he won the Nobel Prize.

He makes total sense. Actually his column today totally reflects what I said in a blog post yesterday.

Fears Of A Double Dip Recession Are Very Real

I was of the opinion that the stimulus should have been a trillion dollars. I have also talked in terms of a second stimulus bill. Paul Krugman shares those views.
Enhanced by Zemanta

Wednesday, August 25, 2010

Village Idiot Wayne Barrett



This guy should leave Reshma Saujani alone and instead blame me for the nuclear winter, as it is known in the tech industry. I was an early member of a dot com in the late 1990s that flamed out.

Village Voice: Wayne Barrett: Reshma Saujani's Road to Congress? Right Down Wall Street. Let Me Be Your Guide.

These idiots don't seem to realize that now we live in the post Wall Street reform era, and now we need to mend the frayed relationship between Wall Street and Main Street to bring the unemployment rate down.

Enhanced by Zemanta