Keeping a stable job is a necessity. One needs this to buy food, pay bills, rent and medicines. Most, if not all, needs money to progress. Unfortunately, according to reports over 60,000 individuals lost their jobs last month.
Is A New Recession Brewing?
According to the Guardian, job cuts are at its highest level since 2009. For the month of April, 61, 582 individuals lost their jobs due to staff reductions. For the first third of the year, job cuts are over 250,000, a level not reached since the recession hit the job market in 2009. The said event leads to 700,000 job displacements.
Per the report, most of the job displacement is related to the oil industry after the collapse of oil prices. Aside from this, there is also a major cut from Intel. The company slashed its employee ranks. Nearly three-quarters of the 16,923 cuts were from the 12,000 layoffs of chip-makers.
Aside from this, there are rumors that there were also job displacements in the tech sector that were not included in the report. On the other hand, IBM reportedly laid off 14,000 employees, but the company has not confirmed this yet.
"Interest rates will stay low for longer, asset prices will continue to be artificially high," Bill Gross, manager of Janus Global Unconstrained Bond Fund in Barron's predicted. "At some point, monetary policy will create inflation and markets will be at risk. Not yet, but be careful in the interim. Be content with low single-digit returns."
Despite the job displacement reports, according to NPR, the unemployment rate remains the same at five percent. The Bureau of Labor Statistics announced that there were new 160,000 jobs in the United States last month. However, this was lesser than expected.
Meanwhile, the White House assured that the economy is okay. "The longest streak of private-sector job growth on record continued in April, with businesses adding 171,000 jobs, well above the pace necessary to maintain a low and stable unemployment rate." In fact, the average hourly rate of private employees increased by 3.2 percent.
Do you agree that the economy is okay? Do you fear that another recession may soon happen? Do you feel secure with your job? Share your thoughts in the comment section below.
