Chart of the Month: Permanent Job Losses are Rising
Source: Federal Reserve Bank of St. Louis
A peek underneath the hood of the stronger-than-expected August jobs report suggests that the recession may be far from over. While it is encouraging that a significant number of Americans have been called back to work as states continue to relax their coronavirus restrictions, there have also been a staggering number of workers who have permanently lost their jobs this year. In the latest employment report, the number of permanent job losses rose to 3.4 million, the highest level since 2013. Finding a new job after a permanent layoff is challenging, with data suggesting the length of time can extend for months and sometimes years, depending on each person’s unique circumstances. The alarming surge in permanent job losses is a stark reminder that the labor market is still grappling with the economic fallout of the pandemic. With a slew of job cuts announced by large corporations in recent weeks, the rise in permanent layoffs is likely to continue in the coming months.
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