“Big Short” fame investor and hedge fund manager Michael Burry has yet again sounded the alarm on white-collar jobs burgeoning unsustainably amid a falling market and fears of an economic recession.
What Happened: Burry, late on Sunday, tweeted that the “white collar employment bubble is bursting right before our eyes.”
He added that “the longer it takes the redundancy to disappear, the more permanent the decline in employment will be.”
“WFH will in time be seen as a culprit,” he said in the tweet, seemingly in reference to the work-from-home trend that received a fillip from the COVID-19 pandemic.
Screenshot from Michael Burry’s Twitter account
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Why It’s Important: Latest weekly unemployment data from the Labor Department suggests that the jobs market remains resilient in the United States this month, as per a Reuters report.
Government data earlier in September also showed that the U.S. added about 350,000 jobs last month, which paved the way for the Federal Reserve to bump up interest rates.
This is not the first time Burry has pointed out a dangerous trend in the market for salaried professionals, the bulk of whom took to remote working during the pandemic, leading to a boost in productivity and wages.
That trend has largely remained in place, even as analysts point to a sharp drop in labor productivity this year.
In June, Burry predicted a “bifurcated jobs market,” where unskilled and semi-skilled workers are in short supply but “redundant” white-collar workers will find gross excess and pressure wages.
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Image and article originally from www.benzinga.com. Read the original article here.