Large layoffs incoming amid September’s sluggish job growth
The U.S. job market added 142,000 jobs in September, which was much less than the 204,000 that economists had originally predicted.
Job growth has been lower than expected for the past three months, making the U.S. unemployment rate the lowest it’s been in the last seven years at 5.1 percent. Some of this slow job creation may be coming from China’s sluggish economy. Since China’s economy has taken a dip, they can’t purchase as many goods from other countries, which then impacts the economy of the countries with which they trade.
“It’s a very disappointing report across the board,” said California State University’s economics professor Sung Sohn. “The U.S. economy is really buckling under the pressure of a global economic shutdown.”
DHR International’s executive vice president, Joe Huddle, believes the recent slow economic growth may just be a “blip,” but is that really the case? While Americans are hoping for an influx of jobs over the next few months, many U.S. companies are warning their employees of future layoffs. The Caterpillar machinery company announced that they will be cutting 10,000 jobs over the next few years.
The telecommunications corporation Sprint reported on Thursday that they’re looking to cut about $2.5 billion in costs over the next 6 months, which may involve large-scale layoffs to make this possible. The company is still deciding how many jobs they will need to cut, and they have put a freeze on company recruitment at this time.
“We have begun an effort to significantly take costs out of the business so the transformation of the company will be sustainable for the long term,” said a Sprint spokeswoman. “It is likely that some jobs will be impacted, but it’s premature to discuss the details as we are in the early stages of the process.”
As more companies announce layoffs, October’s potential to end the streak of lower than expected job creation becomes less likely.
Will job growth increase in the United States, despite massive layoffs? What needs to occur for job growth to see a bigger increase in the coming months? Leave a comment or talk to me on Twitter @Karbowski_Devon.