The Week in Business: Skyrocketing Job Growth

Analysts had expected an increase of 250,000 jobs in July. And so it was a shock when the Department of Labor report showed that more than double that number – 528,000 – were added last month. The blistering pace of growth has brought total employment back to pre-pandemic levels, a disconcerting benchmark given other recent signs of a slowing economy, including a slump in gross domestic product and a weaker housing market. calm. Indeed, this latest jobs report brings more questions than answers about the state of the US economy: What is causing employers’ confidence in hiring so many fear a recession? Why is the labor market so resilient if the economy looks more depressed? These are apparent contradictions that Federal Reserve officials will weigh as they consider the way forward.

Citing the cryptocurrency market crash as well as inflation and a deteriorating economic outlook, trading app Robinhood on Tuesday announced layoffs of 23% of its staff, the second round of job cuts in months. only. It is still dealing with the fallout from last year’s “meme stock” frenzy, when investors conspired to drive up the shares of troubled companies like GameStop and AMC, ultimately leading to lawsuits, a report from the Securities and Exchange Commission and Congressional hearings for Robinhood, which has become a key player in trading. But also disastrous for the company has been its exposure to the crypto market, which analysts say led many companies, like cryptocurrency exchange Coinbase, to overhire during the market boom. then to take out the personnel as they dove. Vlad Tenev, Robinhood’s chief executive, said the company misjudged the economy and business activity. “As CEO, I have endorsed and taken responsibility for our ambitious staffing trajectory — it’s on me,” he wrote in a blog post.

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