Warn Act Data Shows Jump in Layoff Notices, Potentially Signaling Economic Troubles Ahead
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Data from the WARN Act shows an increase in advance notices from companies about pending plant closures and layoffs.
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An economist projects initial jobless claims could rise to 250K-300K in October based on the WARN data, which would be noteworthy.
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If layoffs rise, it could impact expectations about the economy and affect markets, like stocks and Treasurys.
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Historical data shows layoffs tend to snowball once underway, which the "Sahm Rule" tries to detect early.
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The WARN Act requires large employers to give 60-90 days notice of impending mass layoffs to workers and states.