A Note from the Founder 03.11.2025

Zachary Urow April 22, 2025

Layoff Announcements Reach Highest Levels Since 2020

  • In February, U.S. employers announced 172,017 planned layoffs, more than doubling
    January’s total and marking the highest monthly figure since mid-2020.
  • The Department of Government Efficiency (DOGE), led by Elon Musk, directed 17
    federal agencies to identify and eliminate duplicative roles, unnecessary management
    layers, and non-critical positions, resulting in 62,242 job cuts attributed to these measures.
  • Despite the surge in layoff announcements, initial claims for jobless benefits decreased
    to 221,000 for the week ending March 1, down from 242,000 the previous week,
    indicating that the labor market has not yet fully absorbed the impact of these planned
    reductions.

Durable Goods Orders Rebound Amid Mixed Inflation Signals

  • New orders for manufactured durable goods rose 3.1% in January after a 1.8% decline in December, indicating some resilience in industrial production, despite broader
    economic uncertainty.
  • The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s
    preferred inflation gauge, rose 2.5% year-over-year in January. This is slightly down
    from December. Core PCE increased by 2.6%, indicating gradual disinflation.

Our Thoughts

  • With job losses mounting, demand for temporary storage solutions may increase as
    displaced workers relocate or downsize. Self-storage operators should monitor shifting migration patterns and local employment trends to anticipate demand fluctuations
  • While moderating inflation may help stabilize self-storage operating costs, cautious
    business investment in equipment signals a slower economic recovery, which could
    influence rental rate trends and facility expansion strategies.