The COVID-19 pandemic has currently shuttered swaths of services, leaving countless workers out of work, and the economic destruction is far from over now that coronavirus infections are surging once again.
According to a newly-released report from nonprofit think tank The Conference Board, a September survey found that practically one in 10 American services are preparing for further layoffs during the 2020 fiscal year.
From the poll of 330 executives – — who mostly operate in large companies – — The Conference Board reported that cost-reduction actions are coming within the next three months.
“After 6 months of adjusting to the pandemic, lots of surveyed organizations react that they are not done executing cost-reduction actions,” they wrote. “From October through December 2020, 13% of surveyed organizations plan to reorganize the organization, 11% strategy to cut benefits, 9% plan to conduct irreversible layoffs, and 8% plan to postpone pay increases and perks.”
Furloughs and short-lived layoffs represent 3% of the actions planned throughout the 4th quarter, according to the study.
There was a silver lining, nevertheless.
“On the favorable side, lots of companies have had the ability to totally or partially reverse some of the cost-cutting actions they had taken at the beginning of the pandemic, particularly around decreasing incomes and salaries [which were] 25% reversed,” the group noted.
In the last jobs report ahead of Tuesday’s presidential election, preliminary weekly U.S. out of work claims fell to 751,000 – — down 40,000 from the previous week. It was the most affordable initial claims report because of the week of March 14.
Losses in the intervening period have been significant, however, and the new claims were still more than three times the weekly average previous to the pandemic.
Initial claims reflect only the variety of people laid off recently, not those getting help for more than a week.
Overall, more than 20 million Americans are still receiving welfare through state and emergency situation programs, The Wall Street Journal reported last Thursday.
The U.S.A. Today kept in mind Monday that while some industries saw success – — like the tech market and e-commerce – — restaurant, hotel, entertainment, and retail businesses were battered.
Just 19% of organizations had stayed open or returned to the work environment by the end of September 2020, the survey reported.
Businesses that had held out through summertime, like Walt Disney Co. and ExxonMobil, have just recently revealed countless layoffs.
Although lots of are preparing to go back to the office by March 2021, a frightening increase in case numbers might derail those dreams.
The nation set a new all-time high for coronavirus cases confirmed in a single 24-hour period last Friday, reporting simply over 100,000 brand-new infections.
The pandemic has eliminated more than 231,000 Americans.
Congress stays at a standstill over a new economic stimulus costs to offer further help to those dealing with the economic effect.