BALTIMORE (AP) — United States (US) employers laid off 7.7 million workers in April — a sign of just how deep the economic hole is after the closure of thousands of offices, restaurants, stores and schools during the pandemic.
The Labour Department also said in a Tuesday report that job openings plummeted and hiring all but disappeared in April. The number of available jobs fell 16 per cent from March, to five million. Hires declined 31 per cent to 3.5 million.
The grim April — which followed an even bleaker March with 11.5 million layoffs — suggests that the economy could take time to recover nearly a decade’s worth of gains that vanished in about 60 days. Hiring did rebound in May as 2.5 million jobs were added on net, the government said in a separate report last Friday. But those gains appeared to reflect temporarily laid-off employees returning to work and increases in people with part-time jobs, rather than an economy at full throttle.
The Tuesday report shows how employers responded quickly to the pandemic by furloughing or laying off workers in March, though that slowed the following month as consumer spending appeared to bottom out and even recover slightly. The Job Openings and Labour Turnover survey, or JOLTS, details overall hiring and job separation figures, while the monthly jobs data reflects net changes.
The next several months could be a challenge as monthly hiring was only at 60 per cent of 2019’s average. There are 4.6 unemployed workers for each job opening, meaning it will likely take time for the economy to return to its pre-coronavirus health.