The latest labour-market indicators are flashing red: firms are reporting the worst earnings in 20 years as macro head-winds bite. This downturn is triggering a wave of job-cuts that could ripple across equity markets and challenge investor confidence. For traders it signals a rising risk-off mood-watch sectors heavy in employment closely.

How many jobs will the United States lose in the coming months?

According to data from a report by Challenger, Gray & Christmas, in October, firms reported 153,074 layoffs, a 175% year-over-year increase and the most for the month of October since 2003.

Thus, in total, for the first three quarters (January-October), US businesses announced 1,099,500 job cuts, the most since the pandemic year of 2020. The year-over-year increase in layoffs exceeded 60%, with technology firms leading the statistics. In October, there were 33,281 layoffs in the IT sector. That's 5 times more than in September, for perspective. Retail chains also significantly increased…