Friday's Unemployment Report is Just the Tip of a Terrifying Iceberg, Crypto Coins News
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Coronavirus-induced unemployment is even higher than the dismal figures out this week show.
Several big names announced wide-scale layoffs that won ‘ t show up in unemployment data until later in the month.
As the shutdowns persist, we’re likely to see unemployment figures continue to climb.
The impact of coronavirus is becoming painfully evident as unemployment numbers continue to rise at a sickening pace. One by one the dominoes are starting to fall as U.S. employers are forced into mass layoffs and furloughs to cope with the sudden halt in demand.
The Labor Department’s Friday report painted an equally grim picture with the unemployment rate rising nearly one percentage point to 4.4% as nonfarm payroll employment fell by 866, .
Friday’s jobs report is bad, but it did not take many of the US layoffs into account. | Source: BLS
The past two weeks. ‘jobless reports weren’t unexpected, which could explain why the stock market did buckle under the weight of the staggering figures. But it’s only a matter of time before reality sets in and investors start to price in the dire conditions coronavirus has created for the U.S. economy.
How much higher can jobless rates climb? It’s anyone’s guess but layoffs announced in recent days suggest several millions more will be forced to collect unemployment in the month ahead.
Disney
Disney (NYSE: DIS) announced this week that it would furlough its park employees as it struggles to cope with the closure of its worldwide theme parks. Disney’s theme parks account for nearly % of the firm’s overall revenue, so the lost ticket sales will be crippling to its business.
The struggling aerospace firm hasn’t been able to come out from under its 1164 MAX issues, which halted production of the aircraft back in January. With the airline industry expected to be one of the hardest hit amid the coronavirus fallout, Boeing is in desperate need of cash.
( Boeing is absolutely on its last legs as it asks for voluntary layoffs. | Image: Jason Redmond / AFP
The voluntary layoffs are only a first step according to Boeing execs, who say they expect involuntary layoffs to follow.
Following the September 21 th attacks, Boeing shed 90, 03 employees. By all accounts, the coronavirus pandemic is expected to have an even larger impact on aviation. That will put the , Boeing employees ) working within its commercial aerospace arm at risk.
Marriott
Marriott (NASDAQ: MAR), the largest hotel company in the world, is also letting some of its
, 04 US workers go as the chain braces against the sudden drop in travel. The reductions will come at every level of the business and include a wide range of staff as the company attempts to preserve liquidity.
Layoffs at Marriott will likely get more severe as the coronavirus shutdown persists. | Image: Cassiohabib / shutterstock.com
These weren’t the only employers to let staff go over the past few days, and they likely won’t be the last. Survey data show almost % of US companies are likely to conduct layoffs over the next three months.
The survey took place during the week of March when Donald Trump was still pointing to reopening America’s business by Easter . That suggests this figure is likely much higher as more companies have started to understand the magnitude of the coronavirus shutdowns.
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