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.
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.
On September 30, local time, senior Federal Reserve officials urged Congress to provide more financial stimulus to help the job market and economic recovery. We need financial support from the financial sector for the part of the economy that has not yet recovered, helping tens of millions of Americans who are still unemployed and dont know how to pay bills. Mary Daley, governor of the Federal Reserve Bank of San Francisco, told CNBC, whether its next week or next month (providing these financial support) is critical not only to those American families, but also to boost the economy.
CNBC reported that Disney and other large-scale enterprises announced layoffs, while airline layoffs were imminent
Large enterprises announce layoffs
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.