Donald Trump may be talking about a great economy by looking at Wall Street….
But?
Virus fall out IS keeping people out of work….
Another 650,000 people had new claims processed for Pandemic Unemployment Assistance last week, the program for self-employed and gig workers, up slightly from 630,000 the week before.
The total number of people claiming unemployment insurance ticked up slightly, to 26.5 million for the week ending Sept. 12.
The unemployment rate was 3.5 percent in February but then jumped quickly to nearly 15 percent in April as U.S. employers laid off more than 20 million people due to the coronavirus pandemic. Employers have added back roughly half of the lost jobs since then, but many Americans remain unemployed. President Trump has said the economy is roaring back to life but a string of new layoff announcements show how some companies are still struggling to adjust to the uneven economic recovery, particularly as some industries remain very weak….
With no more stimulus money coming the Airlines are beginning tens of thousands layoffs….
As many as 50,000 airline workers could be furloughed starting Thursday morning after Congress failed to pass a last-minute deal to extend coronavirus relief aid to the embattled industry.
American Airlines CEO Doug Parker confirmed late Wednesday that his airline would go ahead with 19,000 layoffs — or 14 percent of its pre-pandemic workforce — but said it would “reverse” them if an agreement were reached.
“Tomorrow, we will begin the difficult process of furloughing 19,000 of our hardworking and dedicated colleagues,” Parker wrote in a memo to staff members. “I am extremely sorry we have reached this outcome. It is not what you all deserve.”
United Airlines confirmed that it will cut thousands of jobs, telling employees in a letter: “We regrettably are forced to move forward with the process of involuntarily furloughing about 13,000 of our United team members. We implore our elected leaders to reach a compromise, get a deal done now, and save jobs.”
At stake are the jobs of close to 50,000 pilots, flight attendants, baggage handlers, counter agents and other airline and airport personnel.
A provision of the CARES Act, which President Donald Trump signed in March, covered nearly 75 percent of airlines’ payroll expenses, with the stipulation that airlines not let any workers go until Oct. 1. The provision expires Wednesday night.
House Democrats have proposed an overall coronavirus relief package that would include an extension of the protections, but Senate Republicans have yet to agree. Substantial progress on the deal could not be made before the time limit, Treasury Secretary Steven Mnuchin told Fox Business on Wednesday night….
Things gonna get worst NOT better for jobless….
The big picture: Airline workers aren’t alone on the unemployment line. Oil companies, tire manufacturers, book publishers and insurers are among those that have announced tens of thousands of layoffs. Federal aid through the CARES Act earlier this year delayed most layoffs — until now.
American Airlines on Wednesday was the first to announce that it will begin furloughing 19,000 employees on Thursday.
United Airlines’ CEO warned in a letter last month that the company could furlough up to 16,000 if aid was not renewed.
Spirit Airlines says it will cut 1,000 jobs in Florida, per Bloomberg.
Delta says it will delay potential furloughs until Nov. 1 in order to allow themselves more time to assess their finances, per NBC News.
Allstate Insurance is laying off 3,800 employees, about 8% of their workers, The New York Times reports.
Up to 9,000 Shell Oil workers are losing their jobs, according to Business Insider.
Fashion designed Ralph Lauren is cutting 15% of its workforce, or more than 3,700 jobs, due to coronavirus business slowdowns and store closures, the Wall Street Journal reports.
Defense contractor Raytheon is trimming 15,000 workers, the company announced last month.
Why it matters: The job losses ripple into other industries, such as hotels and theme parks.
Disney on Tuesday said it will layoff 28,000 employees, mostly in its theme parks….
More from Axios…
Just think of the seasonal aspect, especially in the New Year. I can’t see things improving — absent some truly powerful government action — in construction or hospitality, although health care, education and accountancy (including tax prep) might see some increases as schools reopen, more people get sick and annual reports and taxes come due.
Yea DSD…
Drops right IN Biden’s lap so the GOPer’s can blame him looking for a 2010 like 2022 midterm…..
There are people on CNBC that are saying the jobless numbers will INCREASE…..
And they are NOW getting on board on the Fauci warning that that we HAVE TO deal with the virus….
Trump’s words are meaningless even for him….
And they ARE acknowledging that America is IN a ‘Recession’….