UPDATE: COVID-19 Has Claimed Over 3K Jobs, Over 9M Threatened
COVID-19 HAS CAUSED EMPLOYERS TO ANNOUNCE 3,634 JOB CUTS
More announcements in Entertainment/Leisure have pushed job cuts due to the COVID-19 outbreak to 3,634, according to global outplacement and executive and business coaching firm Challenger, Gray & Christmas, Inc.
"We are certainly beginning to see the cracks in the foundation. Slowing demand, brought on by the need for Americans to practice social distancing, is going to very likely immediately hurt those who work in at the nation's hotels, restaurants, and bars," said Andrew Challenger, Senior VP of Challenger, Gray & Christmas, Inc.
Yesterday, US Secretary of Treasury Steven Mnuchin estimated the unemployment rate could hit 20% if the proposed economic stimulus package is not passed.
For Challenger's monthly Job Cuts Report, the firm tracks publicly announced job cuts through company announcements, media reports, and SEC filings. These numbers do not include layoffs from bars and restaurants that were shut down across 13 states, the city of St. Louis, Reno, NV, and the District of Columbia: PA, NC, IL, NY, WA, MD, CT, MI, CA, MA, NJ, OH, FL (bars and night clubs).
Those shutdowns could cost or significantly impact over 9M jobs, based on various labor department employment data in the Leisure & Hospitality sector.
"It remains to be seen for how long the outbreak and response will last. Many establishments would like for their teams to return to work as soon as possible or otherwise keep them employed. Indeed, some bars and restaurants with delivery services may be able to keep some staff.
"However, with no income, many of these workers will likely seek, and hopefully, find other employment in the interim, which could make them unavailable to come back," said Andy Challenger, Senior VP Challenger, Gray & Christmas, Inc.
"If the shutdowns continue even longer, many of these jobs may not exist immediately when the crisis ends," he added.