Coronavirus job losses could total 47 million, unemployment rate may hit 32%, Fed estimates

[Gaali_Gottam_Govinda]

• The coronavirus economic freeze could cost 47 million jobs and send the unemployment rate past 32%, according to a Federal Reserve estimate.
• There are nearly 67 million Americans working in jobs that are at a high risk of layoffs, according to the analysis.
• Hiring at many firms already has ground to a halt
• Macy’s announced on Monday it will furlough most of its employees.

 

Nearly 50% of companies say they are at least somewhat likely to conduct layoffs over the next three months due to coronavirus COVID-19, while more than one-third of firms (37%) say they already have instituted a hiring freeze. This comes on the heels of a Federal Reserve estimate that stated that the coronavirus economic freeze could cost 47 million jobs and send the unemployment rate past 32%.

 

That’s from an online survey of more than 250 companies, varying in size and sector, conducted from March 20–26 by Challenger, Gray & Christmas, the oldest outplacement firm in the U.S., which works with companies on transitions services for employees.

Forty-nine percent of companies told Challenger, Gray & Christmas they are very or somewhat likely to conduct layoffs in the next three months, while 11% reported they have conducted permanent layoffs; another 7% have conducted temporary layoffs.

“Millions of Americans filed for unemployment last week, so it is clear companies across the country are instituting very real and difficult cuts. Employers are wary of letting their workers go right now after fighting so hard to find and retain them during one of the tightest labor markets in recent history,” said senior vice president Andrew Challenger in a survey release.

The Department of Labor reported that unemployment claims surged to a record 3.28 million last Thursday — nearly five times the country’s previous high.

Fourteen percent of companies stated they have furloughed employees, while 37% reported they are very likely or somewhat likely to do so in the next three months.

On Monday, Macy’s announced it would be furloughing the majority of its