Analyst: Unexpectedly Weak Nonfarm Payrolls Indicate U.S. Economy Is in Turmoil

Golden Ten Data reported on March 7 that Kim Forrest, Chief Investment Officer of Bokeh Capital Partners, stated that the unexpected weakness in the non-farm payroll data indicates that the economy is experiencing volatility. We know that large-scale layoffs have already occurred. The difficulty in hiring during the COVID-19 period led companies to retain far more employees than actually needed, and many positions were in fact unnecessary. The methods we use to measure the economy do not necessarily convey the truly important information. Higher layoff rates and lower labor force participation rates provide the Federal Reserve with reasons to cut interest rates.