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U.S. companies not rushing to rehire workers; rising COVID-19 cases threaten recovery

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U.S. private payrolls increased less than expected in June as reopening businesses showed little urgency to rehire workers and employers announced more than 170,000 layoffs, bolstering views the recovery from the COVID-19 pandemic would be a long slog.

FILE PHOTO: People walk on the streets amid the global outbreak of the coronavirus disease , in Austin, Texas, U.S., June 28, 2020. REUTERS/Sergio Flores/File Photo

A separate report from global outplacement firm Challenger, Gray & Christmas on Wednesday showed employers announced 170,219 job cuts in June. Though layoffs last month were down 57% from May, they jumped 306% compared to June last year. A third report, from the Institute for Supply Management , showed its index of national factory activity jumped to 52.6 last month from 43.1 in May. That was the strongest since April 2019 and ended three straight months of contraction. A reading above 50 indicates growth in manufacturing, which accounts for 11% of the U.S. economy.

Stocks on Wall Street were trading higher. The dollar fell against a basket of currencies. U.S. Treasury prices were lower.The ADP report, jointly developed with Moody’s Analytics, was published ahead of the government’s more comprehensive employment report for June scheduled for release on Thursday. U.S. financial markets and the government will be closed on Friday in observance of Saturday’s Independence Day holiday.

 

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It should be that way. Expense control on Personnel Expense is a must if cash flow and profit are suffering

Extra $2400 from federal govt on unemployment has nothing to do with it. I’m sure.

but senate republicans told us they don't want to extend unemployment because it makes people not want to go back to work. how can people go back to work if companies aren't rehiring?

Curious about how COVID19 has harmed companies? Check my video! 👇👇👇

There can't be a recovery until the federal government develops a competent plan to handle the virus, which is not going to happen under the idiot-in-chief trump.

The consensus amongst preeminent economists is that unemployment will not return to pre-COVID levels until ~2025. Trump & Republicans are -suing to overturn Obamacare—when millions've lost employer-provided insurance -cutting SNAP—when child hunger is soaring VOTE. THEM. OUT.

Nah. Unelected bureaucrats & politicians are threatening the recovery from the mess they created.

No shit

This is not a surprise.

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