54% job cuts announced by US companies in July: report

WASHINGTON (Reuters) – US employers announced another 262,649 job cuts in July as the COVID-19 epidemic continued to weigh on demand, the latest sign that the labor market recovery is losing steam.

FILE PHOTO: People stand in line outside a Kentucky Career Center in Frankfurt, Kentucky, US on June 18, 2020 hoping to get help with their unemployment claims. REUTERS / Brian Woolstone / File Photo

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

Job cuts, the third-largest monthly total since the coronovirus epidemic began, followed this week’s data showing a big move in private payroll in July and further contraction in employment in the manufacturing and service industries.

A total of 246,507 fares were announced in July, almost layoffs, Challenger, Gray reported.

“The Challenger is far from an increase in COVID cases nationwide, in particular,” said Andrew Challenger, Senior Vice President at Challenger, Gray. “Consumers are buying fewer goods and services, businesses are closing down, and the insolvency process is increasing.”

The July job cuts reached a total of 1.848 million so far this year, up 212% from the same period in 2019. Year-on-year layoffs are only 109,180 away from the 1.957 million job cuts announced in 2001.

Weak labor market figures have increased the risk of job boom in July. The Labor Department will publish its closely scrutinized, and comprehensive, monthly employment report on Friday. According to a Reuters poll of economists, nonfarm payrolls rose 1.6 million in July from a record 4.8 million jobs created in July.

According to Challenger, Gray and Christmas, COVID-19 was cited as the reason for 63,517 job cuts in July. Respiratory disease has been blamed for 1.075 million layoffs so far this year. The balance of job cuts in July was attributed to market conditions, a drop in demand and bankruptcy.

Several retailers, including Jessie Penney and Lord & Taylor, have filed for bankruptcy since March. Job cuts were concentrated in bars, restaurants, hotels and amusement parks. The automotive sector cut 83,853 jobs. A total of 246,507 fares were announced in July, with approximately layoffs.

“It is clear that many job losses are now permanent, and it will be challenging for many workers to look for new jobs and to feel secure facing jobs in public.”

Reporting by Lucia Mutikani; Editing by Leslie Adler

Our standard:Thomson Reuters Trust Theory.

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