Yahoo Finance

A severe recession is possible, economic expert warns

Brian Sozzi · Anchor, Editor-at-Large
Fri, June 10, 2022, 11:25 AM · 3 min read

Dust off your recession preparation handbook you used back in 2008-2009 as the setup exists for a severe recession not too far off in the future, warns one business cycle expert.

"The job market is pretty tight, so therefore this could mean a mild recession. I don't think that's knowable just yet. One of the things that we are seeing from our research — because we do look at 22 economies around the world — is that there is a setup for a more severe recession. A more international recession. The last time we had that would have been like the early 1980s," Economic Cycle Research Institute (ECRI) co-founder Lakshman Achuthan said on Yahoo Finance Live.

Signs of a brewing recession aren't too hard to spot right now. ... For one, headline-grabbing layoffs are on the rise.

E-commerce site Stitch Fix (SFIX) said Thursday it will axe 15% of its corporate workforce as it deals with a slowdown in sales and increased losses. E-signature software company DocuSign (DOCU) said this week it would slow the pace of hiring. Electric scooter player Bird (BRDS) announced this week it would lay off 23% of its workforce as it clamps down on expenses.

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