Job Cuts by U.S. Companies Surged in July, Complicating Pandemic Recovery

U.S. employers announced another 262,649 task cuts in July as the COVID-19 pandemic continued to weigh on need, the latest indicator that the labor market healing is losing steam.

The layoffs reported by global outplacement firm Challenger, Gray & & Christmas on Thursday were up 54% from June.

The job cuts, the third-largest regular monthly total given that the coronavirus pandemic began, followed information this week showing a big step-down in personal payrolls in July and more contraction in employment at production and services markets.

Hiring announcements amounted to 246,507 in July, practically matching layoffs, Opposition, Gray reported.

“The downturn is far from over, particularly as COVID cases rise around the nation,” said Andrew Opposition, senior vice president at Challenger, Gray. “Consumers are purchasing fewer items and services, businesses are closing, and personal bankruptcies are increasing.”

July’s job cuts brought the overall so far this year to 1.848 million, up 212% from the same duration in 2019. The year-to-date layoffs are simply 109,180 far from the record 1.957 million task cuts announced in 2001.

The weak labor market data raises the threat of a sharper downturn in job growth in July. The Labor Department will publish its carefully watched, and broader, regular monthly employment report on Friday. According to a Reuters study of economists, nonfarm payrolls likely increased by 1.6 million in July, below the record 4.8 million tasks developed in June.

According to Opposition, Gray & & Christmas, COVID-19 was pointed out as the factor for 63,517 task cuts in July. The breathing health problem has been blamed for 1.075 million layoffs up until now this year. The balance of job cuts in July was attributed to market conditions, a decline in demand and personal bankruptcies.

Numerous merchants consisting of J.C. Penney and Lord & & Taylor have declared personal bankruptcy since March. Task cuts remained focused at bars, dining establishments, hotels and amusement parks. The automotive sector cut 83,853 jobs. Hiring statements amounted to 246,507 in July, almost matching layoffs.

“It is clear that many task losses are now long-term, and it will be challenging for numerous workers to find new tasks and feel safe taking tasks that are public-facing,” stated Opposition.

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