US sees most layoffs since the financial crisis, many in retail jobs

Dated: 07/10/2019

Views: 5

The U.S. job market has been a growth engine of the U.S. economy since the Great Recession. The unemployment rate in May was 3.6%, near the lowest levels in decades, according to the U.S. Bureau of Labor Statistics. However, economists worry that the recovery may stall because of factors that include slower corporate earnings and the trade war with China.

There is evidence that anxiety is warranted. First-half job cuts were at their highest level since the first half of 2009, according to new research.

Jobs outsourcing firm Challenger, Gray & Christmas has kept layoff data by month for years. Its researchers wrote, "So far this year, employers have announced plans to cut 330,987 jobs, a 35% increase from the 245,179 cuts announced through the first half of last year. This year marks the highest first-half total since 2009, when 896,675 job cuts were announced." Second-quarter numbers were not much better. Cuts for the period rose 34% from the same period in 2018, when the figure was 104,800.

Retirement: 3 spending habits that are ruining your chances at retirement

They reached 53,248 in the first half, on top of 73,066 in the same period last year. Retailers continue to close hundreds of locations, and it appears that trend will continue for the balance of the year. Retailers closing the most stores already have announced they will close hundreds this year.

Cuts in the automotive industry were also high, and much higher than in the first half a year ago. In January to June of this year, they totaled 32,350, up from 11,165 in the first half of 2018. Andrew Challenger, vice president at Challenger, Gray & Christmas, commented, "Manufacturers are grappling with not only technological changes, but also increased competition, tariffs, changes in consumer behavior, and skills shortages. The Automotive sector particularly has experienced some setbacks, as consumer demand for traditional vehicles wanes." June car sales helped support that point of view. The auto sector may continue to be hit by tariffs that could drag on for months or longer.

Uh oh... The average millennial's net worth is shockingly low

For the entire year, the trend of cuts may outpace 2018. The 330,987 for the first half of this year compares to 538,659 for all of last year. This could be a particular problem among people with the worst jobs in America, where employment security is low.

Blog author image

Kaila Lindsey

Kaila was born and raised in New York, until in 2002 her family packed up and boarded a 40’ RV headed for adventure. During that year of travel, cultural lines blurred and she was able to experience....

Latest Blog Posts

Mortgage Rates Barely Budge From 3-Year Lows

© REALTOR® MAGAZINEAfter steady declines since the beginning of the year, mortgage rates appear to be leveling off. But that still bodes well for home buyers.“While rates have

Read More

US sees most layoffs since the financial crisis, many in retail jobs

First-half job cuts were at their highest level since the first half of 2009, according to new research. (Photo: nathaphat / Getty Images)The U.S. job market has been a growth engine of the U.

Read More

California earthquake insurance: What does home insurance cover after a disaster?

If you felt the earth move this week, chances are you didn't have earthquake insurance.Late Friday night, a 7.1 magnitude earthquake struck Southern California, the strongest temblor to

Read More

Survey: Buyers Rank Commute Time Above Square Footage

Commute time is an important factor to buyers when they're deciding on a home to purchase. Eighty-five percent of buyers say they would sacrifice other home features, such as lot size, square,

Read More