Job cuts introduced by US employers have hit almost 2 million to date this yr, with the leisure trade accounting for 40 p.c of whole layoffs, in response to world outplacement agency Challenger, Grey & Christmas.
In its report printed on Thursday, the corporate mentioned that final month’s layoffs within the US have been down 56 p.c from July, however nonetheless 116 p.c larger than on the similar interval one yr in the past. August job cuts of almost 116,000 lifted the full variety of this yr’s layoffs to 1,963,458. The quantity has already damaged the earlier document for the entire of 2001, when US-based employers introduced a complete of 1,956,876 cuts.
Additionally on rt.com
US financial system suffers sharpest drop ever as GDP crashes almost 32% throughout coronavirus peak
Many of the jobs – almost 800,000 – vanished from the leisure sector to date this yr, adopted by corporations working in retail and companies. In August, leisure and leisure corporations, together with bars, eating places, accommodations, and amusement parks, posted the second-highest quantity with 17,271 job cuts.
Air and transport corporations downsized their workers much more final month. In response to the report, 26,545 job cuts have been introduced within the struggling sector – 59 p.c decrease than within the earlier month, however 647 p.c larger than in August 2019.
Additionally on rt.com
Unemployed Individuals are spending greater than once they had jobs, because of Covid-19 advantages – JPMorgan
“The main sector for job cuts final month was transportation, as airways start to make staffing choices within the wake of decreased journey and unsure federal intervention,” mentioned Andrew Challenger, senior vice chairman at Challenger, Grey & Christmas. “An rising variety of corporations that originally had non permanent job cuts or furloughs are actually making them everlasting.”
The coronavirus pandemic remains to be battering the US labor market. In response to the most recent Labor Division knowledge, seasonally adjusted preliminary claims for jobless advantages for the week ending August 29 stood at 881,000. Whereas it’s round 130,000 down from the earlier week’s totals, it is just the second time the variety of new jobless claims dropped under 1 million because the pandemic hit in March.
For extra tales on financial system & finance go to RT’s enterprise part
