imageEconomic Indicators13 hours ago (Mar 12, 2020 02:01PM ET)

U.S. companies announced 633 job cuts from coronavirus so far -Challenger, Gray and Christmas

(Reuters) – U.S. companies have announced 633 layoffs related to the coronavirus outbreak so far, global outplacement firm Challenger, Gray and Christmas said on Thursday, providing the first tally of American job losses from what has mushroomed into a global pandemic.

“We are indeed seeing job cuts from companies that are grappling with Supply Shock. The Port of Los Angeles cut 145 drivers after shipments from China stalled, and a toy maker cut 18 jobs due to a work stoppage in China,” said Andrew Challenger, senior vice president of the firm, which produces a widely followed monthly measure of layoff announcements.

The entertainment and leisure sector is the most affected so far, Challenger said, with 300 job cuts largely resulting from event cancellations. Another 70 came from the energy sector and appeared tied to the steep drop in oil prices after Saudi Arabia announced a major production increase.

Challenger’s tally was the first firm evidence that the outbreak is starting to affect the U.S. job market, which came into this crisis in historically strong shape, with the unemployment rate at a 50-year low of 3.5%.

Weekly government data on new claims for unemployment benefits out earlier on Thursday showed no impact from coronavirus, but Challenger and others expect layoffs to soon become more widespread.[nL1N2B4217]

“These will not be the last job cuts we see from this outbreak,” Challenger said.

U.S. companies announced 633 job cuts from coronavirus so far -Challenger, Gray and Christmas

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.