UPS announced this morning they’ll be laying off 12,000 workers in the coming weeks due to lower demand for their services and higher demand from their workers to receive higher pay. UPS employs 536,000 people currently, so the announced layoffs represent a 2.2% reduction in their workforce. UPS has not indicated whether they will be delivering 2.2% slower or cut out 2.2% of their delivery zones, so it’s safe to assume that the dog toys you ordered yesterday will be on your porch by the time you get home tonight.

The Job Openings report this morning from the BLS shows that there are currently 9.026 million jobs needing to be filled across the country, which is a 1.1% increase from last month, so any displaced UPS employee should have an easy time finding something else to do, and while wearing a more colorful outfit.

The reduced demand from the world’s biggest shipper does call into question the slowdown in the delivering industry.  The Personal Consumption Expenditures Index published last Friday showed that spending increased 0.7% last month and we consumers are shelling out 6.6% more dollars today than this time last year. It’s possible that we’re buying fewer, but more expensive items.  It’s also possible that we’re sourcing goods locally or bundling our online purchases into one order to save shipping.

The Consumer Confidence report this morning leads me to believe that that increased spending trend will continue.  The index rising 6.2% this month brings us to the highest in the last two years.

And before I forget, the Case Shiller Price Index rose 0.2% this month and 5.2% year-over-year. Not to be outdone, the FHFA says that prices are up 0.3 this month and 6.6% YOY. Great news for the housing market.