UBS On-Air: Paul Donovan Daily Audio 'Do layoffs change things?'

Another company—Disney this time—has announced headcount reductions. We get US initial jobless claims data today, and the macroeconomic data does not match the high profile press releases of job losses. A major reason is that large companies are not that important economically—smaller businesses matter most to labor markets. Smaller businesses tend to have underemployment rather than unemployment. It is quite hard to fire 10% of a three-person company.