Billionaire bond investor Jeffrey Gundlach, the CEO of $135 billion DoubleLine Capital, sees the potential for a “wave of more higher-end unemployment’ hitting white-collar workers making more than $100,000 per year as employers increasingly question the value these employees bring.
In 11 weeks, more than 42 million Americans filed for unemployment insurance as the COVID-19 pandemic wrecked the economy. The bulk of these job losses hit lower-income households the hardest.
“A lot of times it’s not the earthquake, it’s the fire,” Gundlach said on a webcast for the DoubleLine Total Return Bond Fund (DBLTX), later adding that he could “easily see layoffs in various industries” affecting higher earners.
Gundlach, who runs the Los Angeles-based bond investment firm, explained that one of the outcomes of remote work is it reveals who produces and who doesn’t.
“What people may have learned for white-collar services jobs, in particular, during the work-from-home lockdown situation,