We’re living through the largest layoff spree in American history.
In a three-week period through early April, 16.8 million Americans filed for unemployment benefits, likely pushing the real unemployment rate to near 15%, the highest level since 1940.
And it’s not just small- and midsize employers. Fortune 500 firms are trying to limit the impact of the coronavirus slowdown on their finances by axing thousands of jobs. Some of the biggest companies to announce sizable job cuts include hospitality companies Marriott and MGM, as well as retailers Under Armour and Sephora. Other corporate titans—companies such as GE Aviation, Disney, and Macy’s—are turning to furloughs, with the hope of rehiring talent eventually. “We’ve never been through anything that compares to this,” said Mark Zandi, chief economist at Moody’s Analytics.
A few companies such as Instacart, Amazon, and Walmart have announced big hiring pushes. But they are the outliers, as the vast majority of industries are contracting. In the graphic below, Goldman Sachs projects how many points each of these sectors will add to the growing unemployment rate in the U.S.
More coronavirus coverage from Fortune:
—How Fortune 500 companies are utilizing their resources and expertise during the pandemic
—Inside the surreal “Mask Economy”: Price-gouging, bidding wars, and armed guards
—The IRS just launched “Get My Payment” portal for tracking your stimulus check status
—Should you fear government surveillance in the coronavirus era?
—If you’ve been a little busy lately, here’s what’s going on with the 2020 election
—The coronavirus crisis is fintech’s biggest test yet—and greatest opportunity to go mainstream
—There are 32 authorized coronavirus tests so far—here’s how they differ
—PODCAST: COVID-19 might have upended the concept of the best companies of the year
—VIDEO: 401(k) withdrawal penalties waived for anyone hurt by COVID-19
Subscribe to Outbreak, a daily newsletter roundup of stories on the coronavirus pandemic and its impact on global business. It’s free to get it in your inbox.
