Personal Wealth Management / Expert Commentary

Ken Fisher Weighs in on the State of the Labor Market and What It May Mean for the Economy

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher explains why he believes the state of the labor market in certain industries may not affect the broad economy as much as feared. For example, media coverage of layoffs, primarily in the technology sector, has stoked investor concern over the health of the labor market and the economy as a whole. Ken reminds us, however, the number of people that have been let go so far is small relative to the size of the labor market. For instance, technology layoffs haven’t outnumbered the amount other firms are hiring—reflected in net positive payroll growth in recent months.

Ken also believes it’s unlikely these recent layoffs will cause unemployment to spike in the near term. While thousands of job losses may sound significant to the average person, Ken says they shouldn’t create much of a dent in the broader economic picture.



Title screen appears, “Ken Fisher Weighs in on the State of the Labor Market and What It May Mean for the Economy.”

A man appears on the screen wearing a navy suit, sitting in an office in front of a fireplace.

He begins to speak.

A banner identifies him as Ken Fisher, Executive Chairman and Co-Chief Investment Officer, Fisher Investments.

Ken Fisher doing hand gestures time to time explaining.


Ken Fisher: You every time there's layoffs of any

type, the media makes much of it.

You see it.

We have a problem in that, you know, if we throw a Christmas party, maybe there's maybe there's 25 people at our house.

That'd be a pretty good one.

Maybe there's five people at our house or ten.

Maybe you get carried away and you have 40 people at your house and they're banging on the wall .

But the fact of the matter is that big

numbers are just hard to fit into our heads.

Ken Fisher: So, when a company lays off 10,000 people, people say, Whoa, look at that, 10,000 people gone.

That's got to impact the economy.

The fact is the labor market is very tight.

The kinds of people and the big fear

now is technology companies laying off people.

The kind of people they lay off are very employable.

They tend to come from the geographies that have lots of other firms looking to hire them.

And we're not seeing, and I don't think we will see in the short term,

maybe in the longer term, but not in the short term.

Unemployment going up because 10,000 people here, 5,000 people there, 15,000 over there and 2,000 over here is not enough to put a dent into this market because it's so huge.

Ken Fisher: The fact is this is no more of any great significance than me pulling out my pen, throwing it on the floor

and thinking that that's going to dent the floor somehow.

It just won't.

So in reality, the easiest way to see this is do you start to see the labor market loosening in a sense of increased unemployment.

And so far, and I think in the

short term immediately ahead, there's none of that.

Might there be longer term tied to other things?

Yes, there might be long term tied to

other things, but not tied to that which people have thought about and worried about, which

is these technology companies having these layoffs.

Thank you very much for listening to me.


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A series of disclosures appears on screen: “Investing is Securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice or a reflection of the performance of fisher investment or its clients. Nothing herein is intended to be a recommendation or a forecast of market conditions. Rather it is intended to illustrate a point. Current and future markets may differ significantly from those illustrated here. Not all past forecasts were, nor future forecasts may be, as accurate as those predicted herein.



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