The COVID-19 pandemic has already shuttered swaths of companies, leaving tens of millions of workers unemployed, and the economic devastation is much from over now that coronavirus infections are spiking once more.
In accordance with a newly-released report from nonprofit think tank The Conference Board, a September survey discovered that nearly one in 10 American companies are planning for further layoffs in the course of the 2020 calendar yr.
From the ballot of 330 executives – who principally work in massive corporations – The Convention Board reported that cost-reduction actions are coming throughout the subsequent three months.
“After six months of adapting to the pandemic, many surveyed organizations reply that they don’t seem to be carried out implementing cost-reduction actions,” they wrote. “From October by way of December 2020, 13% of surveyed organizations plan to restructure the group, 11% plan to chop bonuses, 9% plan to conduct everlasting layoffs, and eight% plan to defer pay will increase and bonuses.”
Furloughs and non permanent layoffs signify 3% of the actions deliberate in the course of the fourth quarter, in accordance with the survey.
There was a silver lining, nevertheless.
“On the constructive facet, many organizations have been in a position to absolutely or partially reverse among the cost-cutting actions they’d taken at the start of the pandemic, particularly round lowering salaries and wages [which were] 25% absolutely reversed,” the group famous.
In the last jobs report forward of Tuesday’s presidential election, preliminary weekly U.S. jobless claims fell to 751,000 – down 40,000 from the earlier week. It was the bottom preliminary claims report for the reason that week of March 14.
Losses within the intervening interval have been monumental, nevertheless, and the brand new claims had been nonetheless greater than 3 times the weekly common previous to the pandemic.
Preliminary claims replicate solely the variety of individuals laid off not too long ago, not these receiving assist for greater than per week.
In whole, greater than 20 million People are nonetheless receiving unemployment advantages by way of state and emergency packages, The Wall Street Journal reported last Thursday.
Solely 19% of organizations had remained open or returned to the office by the top of September 2020, the survey reported.
Though many are planning returns to the office by March 2021, a daunting enhance in case numbers may derail these desires.
The nation set a new all-time high for coronavirus cases confirmed in a single 24-hour period final Friday, reporting simply over 100,000 new infections.
The pandemic has killed more than 231,000 Americans.
Congress stays at a standstill over a brand new financial stimulus invoice to supply additional help to these battling the financial impression.