The New "Booming" Economy With No Jobs

Added: 2026-05-12

[00:00:00]And the problem has gotten so bad that some economists are warning about something that we've never really seen happen before. They're saying that we could be hitting what's called a jobless economic boom. Now, those two things completely don't go together at all when you think about what I just said. If a lot of people don't have a job, how on earth can we have an economic boom?

[00:00:22]Because people that don't have jobs don't really spend any money that's not absolutely necessary to spend. And here's what this means. They're referring to corporate profits that have been absolutely exploding, especially since 2020 when the pandemic began because the profits after tax recently just came at a record 3.7 trillion at the end of last year in 2025. And you can see based on this chart, it has gone basically nowhere but up. And on the surface, that sounds like a great thing because companies that are doing well and making corporate profits are going to hire more people, right? Doesn't seem to be what they're doing now, does it?

[00:01:03]Seems like they're firing more people than ever. Now, historically, business profits accelerated alongside other economic indicators like GDP and job growth. But payroll gains lately have come to a grinding halt with the labor market seeing near zero net job growth in 2025. Guys, there was basically no new jobs created after all the revisions came in. And today I'm walking around North Bay Road and Alton Road, this kind of little circle they have over here. I mean, just take a look at the jobs being created going back to 2021, guys. And a lot of these figures were heavily revised downward. And you can see the drop off is significant. You know, things were pretty strong in 2021 and 2022 and then it just fell off a cliff after that and has not recovered. And we've seen many months go negative where we're actually losing jobs. And that's how we're getting to a situation where essentially no new jobs are being created and people continue to lose the jobs they have. Now, one of the main reasons that they think this economic boom could happen even though we're losing jobs is because there's been a tremendous boom in the tech sector. And at the same time, a lot of these tech companies are responsible for the most layoffs that we've been seeing happening over the past few years. At the same time, their profit margins continue to sore. My question is, how long can this actually go on for? Because the more people who are financially destitute, those are going to be less people who are potential customers of all of these technology companies that are letting everybody go, right? How are these companies going to continue making record profits if fewer and fewer people are out there who can actually buy their products or services? It's the same thing with AI. Like, what's the endgame?

[00:02:55]If AI takes everyone's job, who's going to be left to actually spend any money and buy those AI products or services that they provide? You know, it's all backwards. What these companies are doing is they're taking all the short-term gains right now, a lot like the federal government does. You know, like, let's print more money now, let's lower taxes now because it'll be somebody else's problem in the future.

[00:03:19]These businesses are doing the same thing. Right now, it's profitable to do this. and um we can just do it for now until we can't get away with it anymore and then we'll figure it out later. But what this shows us is the way that our economy used to work is fundamentally broken, guys. Like job growth is no longer directly tied in with GDP. Job openings and how much people are making is no longer tied in with economic prosperity. But I do think that reality is going to have to settle in sometime and eventually all of these businesses are going to face the consequences of just not enough people out there anymore to be able to support their business.

[00:04:01]Just like we talked about with the gig workers, you know, if enough people stop taking the jobs and stop working for these companies, they're going to have no choice but to start paying these people a lot more in order to actually take the jobs because, you know, if they don't have anybody to drive somebody to the airport or nobody to deliver your food, then these platforms fall apart overnight. And I think a lot of these big tech companies are going to be facing that same dilemma in the next few years if things continue like this. And make no mistake, while they're firing you, these guys are making an unbelievable amount of money. Okay, Oracle was the big one that just came out in the news. Laid off 30,000 employees, guys. Like, it's nothing.

[00:04:43]30,000 people gone, right? And they did it at 6:00 a.m. with an email blast.

[00:04:48]That's how you find out that you're losing your job. But anyways, they hired a new CFO with a $26 million stock package. So you have these mass layoffs, 30,000 people gone. Meanwhile, the new CFO gets a $26 million sign on bonus.

[00:05:07]The compensation package includes a $950,000 a year base salary, $2.5 million bonus target, and a $26 million stock grant.

[00:05:18]So you become rich overnight by landing this job. And on top of that, there's a huge controversy over how Oracle decided who to lay off. A major claim is that workers with unvested stock options may have been targeted first. And that's a big deal because if you're laid off, unvested stock is immediately forfeited and that saves the company a ton of money. So, they're using AI and algorithms to actually determine who's the most profitable to fire right now.

[00:05:51]Somebody who worked at Oracle for 30 years says that they use an algorithm targeting high-level contributors and mid-level managers, especially those with stock options. And other employees said that they were cut right before their vesting dates. And these layoffs were not performance-based at all. They were basically used to steal people's chance to gain any wealth from the stock options that they might have had. I mean, that is just evil right there if you ask me. Like it's bad enough that these companies are just letting people go with nowhere to go in order to maximize profits, which I understand that's how business has always worked, but we all have to agree that it has just become ruthless these days. And that's proof of it right there. Of course, they use the excuse that they're going to be spending $50 billion dollar on AI and they've taken on over a hundred billion dollars in debt and the layoffs are supposedly going to free up about 8 to10 billion in cash flow. And even though Oracle's earnings have been going up after they took on all this debt, that raises a tremendous amount of extra pressure for the business. And Oracle stock has been down a lot. It's around $138 right now, which is down 58% from its peak back in September of 2025 of $325.

[00:07:12]And that kind of drop in stock prices also creates a lot of pressure for a company like Oracle to cut their costs and boost their margins in any way possible. And this is the way that they did it. But if you think that's bad, it gets worse because at the same time as all these 30,000 layoffs, Oracle filed 3,100 H1B visa applications, which specializes in hiring foreign workers. So you're cutting 30,000 American jobs and hiring 3,100 foreigners likely because they're going to be able to pay them less. I mean, I've never heard anything as brutal the stories we're discussing these days, guys, in terms of, you know, how bad this job market actually is and the lengths that these companies will go to right now to save a dollar regardless of how it affects the people that used to work for them. They just don't care.