U.S. economy under the epidemic situation: the deadline for the relief of the aviation industry is over, and enterprises are laying off workers intensively

category:Finance
 U.S. economy under the epidemic situation: the deadline for the relief of the aviation industry is over, and enterprises are laying off workers intensively


Unemployment data hovered at a five week high

According to data released by the labor department on October 1, the number of people applying for unemployment benefits for the first time in the week ending September 26 was 837000, less than the 850000 expected by the market. The number of people applying for unemployment benefits for the first time in the previous week was revised to 873000. The data also showed that in the week ending September 19, 11.767 million people continued to apply for unemployment benefits,

The analysis shows that since the number of people who apply for unemployment benefits for the first time fell below the 1 million mark on August 13, this indicator economic data of the United States has not been greatly improved. First, it fluctuated around the 1 million level for three consecutive weeks, and recently it fluctuated within the range of 800000-900000 for five consecutive weeks, indicating that the employment recovery power is insufficient.

The novel coronavirus pneumonia has caused a great impact on the US labor market from a longer term trend. The unemployment situation was most serious in March and April. With the restart of the US economy, the labor market has improved since May. However, with the recent slowdown in the recovery of the employment market, the number of people applying for unemployment benefits for the first time remained at a high level, about four times the average level before the outbreak of the epidemic.

Although the latest unemployment relief application data reflect the gradual improvement of the labor market, the absolute number is still far higher than the level before the outbreak of the epidemic, according to the analysis of Bloomberg. As economic risks are accumulating, legislators have yet to reach an agreement on extending fiscal stimulus measures. In particular, the suspension of the federal governments additional unemployment benefits has resulted in a huge drop in American income, which will restrain consumer spending and thus drag down the job market and economic recovery.

David Blanchflower, an economics professor at Dartmouth College, said in an interview with CCTV: the economy now seems to be slowing down and some of the blockades are being restored because the new coronavirus continues to spread. I think the answer is that we are witnessing unprecedented levels of unemployment, and it doesnt look likely to return to normal soon.

According to the Wall Street Journal, the number of layoffs of the two major U.S. airlines may reach 32000 due to the lack of funding

Airlines are forced to lay off workers on a large scale

The analysis shows that the latest unemployment relief application data released by the U.S. Department of labor reflects a new round of layoffs. According to a number of media reports in the United States, in recent days, a number of Companies in the United States announced large-scale layoff plans, which will make the unemployment situation even more serious.

After the outbreak of the new crown epidemic, tens of thousands of flight attendants, luggage porters, gate staff and other employees received at least part of their salaries through the federal governments $25 billion assistance program. However, this aid plan for the U.S. aviation industry expired on September 30. Due to the delay of a new round of rescue measures, large-scale layoffs of airlines may be inevitable.

As the global aviation industry continues to be hit by the epidemic, US airline CEO Doug Parker said on September 30 that 19000 jobs would be cut from October 1 due to the lack of more government aid funds. Scott Kirby, CEO of United Airlines, said 13000 jobs would be cut. Delta CEO ed Bastian also said Congress could be forced to fire about 1900 pilots if Congress fails to reach a financial rescue agreement.

By the end of September, the total number of unemployed people in the four largest US airlines had reached 150000. Many airlines affected by the epidemic have taken a number of response measures, including reducing executive pay, cutting flights and grounding. However, at a time when domestic tourism demand continues to shrink and international tourism demand continues to decline, even if the expenditure is reduced, the airline industry still loses billions of dollars a month. At present, the aviation industry is still anxiously waiting for the Congress to issue a new round of rescue plan, in which the aid provisions for airlines are directly related to the jobs of a large number of aviation workers.

Scott Kirby, CEO of United Airlines, said that it was not until the vaccine was available and widely used that the industry could recover. Since there has been no effective vaccine since the outbreak, David Powell, the chief medical adviser of IATA, said recently that the aviation industry may not be able to wait. With almost no passengers, airlines are doing their best to avoid bankruptcy, but many analysts believe that passenger traffic may not recover until 2024. At present, the U.S. Treasury Department is working with the aviation industry to call on Congress to provide assistance as soon as possible to prevent large-scale layoffs from continuing.

In addition to the fact that large airlines are forced to announce layoffs due to the lack of supply, in the past 48 hours, a number of large companies in the United States have announced plans to lay off staff, which has aroused widespread concern from the outside world.

Dow Chemical, a materials technology company, said on Sept. 30 that it expected to cut 6% of its staff worldwide, but did not release specific figures. The company said it had set aside $50 million to $60 million for restructuring this quarter, which would be used for layoff subsidies and other expenses. Allstate Insurance also announced on the same day that it plans to cut about 3800 jobs, equivalent to 8% of the total number of employees.

As for the whole of September, many large American enterprises announced their plans to lay off workers. For example, clothing brand Ralph Lauren announced global layoffs of 15%, defense and aerospace giant Raytheon technologies announced 15000 layoffs, and retail giant Kohl department store was laying off 15%. Dell informed employees of the layoff plan on September 14, Citigroup announced that it would continue to lay off about 1% of the global workforce on September 14, and Coca Cola company planned to provide voluntary turnover to about 4000 employees Draw. Some economists are worried about the outlook for the job market in the fourth quarter due to the lack of economic momentum, the expiration of fiscal stimulus, the approaching flu season, and the rise of uncertainty in the US election. As a number of large enterprises have announced their plans to terminate their jobs, and the U.S. aviation industry has been forced to lay off staff due to the expiration of the aid program, a new round of layoffs has begun to emerge, which will put greater pressure on the U.S. job market. (CCTV reporter Gu Xiang Xu Xiao) source: CCTV news client editor: Zhang Mei_ NF2100

As for the whole of September, many large American enterprises announced their plans to lay off workers. For example, clothing brand Ralph Lauren announced global layoffs of 15%, defense and aerospace giant Raytheon technologies announced 15000 layoffs, and retail giant Kohl department store was laying off 15%. Dell informed employees of the layoff plan on September 14, Citigroup announced that it would continue to lay off about 1% of the global workforce on September 14, and Coca Cola company planned to provide voluntary turnover to about 4000 employees Draw.

Some economists are worried about the outlook for the job market in the fourth quarter due to the lack of economic momentum, the expiration of fiscal stimulus, the approaching flu season, and the rise of uncertainty in the US election. As a number of large enterprises have announced their plans to terminate their jobs, and the U.S. aviation industry has been forced to lay off staff due to the expiration of the aid program, a new round of layoffs has begun to emerge, which will put greater pressure on the U.S. job market. (CCTV reporter Gu Xiang Xu Xiao)