According to recent notices filed with the state’s Workforce Commission, two unexpected corporations are currently terminating hundreds of workers in Texas.
Remember that a company with more than 100 full-time employees is required under the Worker Adjustment and Retraining Notification Act to give sixty days’ notice before terminating fifty or more employees at one location.
On July 1, 220 workers at Houston’s Ardagh Glass Packaging will lose their jobs.
Southeast Service Corporation Services For Education is the second business that is laying off 65 employees in total in Kingsville.
Two other companies in Texas were also notified last week of impending layoffs.
On August 30, 65 workers in Dallas would lose their jobs at The Compass Group/Fresh & Ready Foods.
Furthermore, 230 workers at Charter Communications, dubbed Spectrum, will be let off from their Austin contact center in August.
As the business became ready to close the Austin location, a spokeswoman said, the decision was made.
According to a Challenger Gray analysis, over 36,772 employees in Texas have lost their jobs since the year began. This is a significant rise over the 26,161 job losses that were reported during the same period in 2023.
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With so many families facing financial instability and job insecurity, this surge in layoffs has clouded the state’s employment picture.
In comparison to the prior year, hiring announcements have also decreased by an astounding 50%.
Just 50,833 new hires are expected by firms nationwide in the first five months of the year, which is the lowest number since 2014.
Hundreds of workers in Texas are being laid off by two unexpected companies, according to Market News Today.
Record highs are being reached in the number of applications for unemployment benefits, indicating a cooling off of the scorching job market.
According to CNN, the number of new claims for unemployment benefits increased to 231,000 last week, the largest since August.
The information released on Thursday also revealed that 1.78 million applications were submitted by those who had applied for unemployment benefits for at least a week. These claims are known as continuing claims.
According to the Bureau of Labor Statistics, that is a 17,000 increase over the previous week.
The most recent data was released less than a week after the US economy generated only 175,000 jobs in April, below expectations and a sharp decline from previous months, according to the monthly jobs report.
Compared to 2023, when the average monthly employment growth rate was 251,000, US companies are now adding an average of 245,500 jobs each month.
Hiring is still robust, though. While it did increase slightly to 3.9% last month, the unemployment rate has remained below 4% for 27 straight months, which is a record last seen in the late 1960s.
The weekly statistics on unemployment claims are sometimes erratic, but one week’s worth of data “does not a trend make,” according to Fwdbonds chief economist Chris Rupkey.
“If the US economy’s weekly jobless claims from today are any indication, we can no longer be certain that calm seas lie ahead.”
“Organizations are beginning to lay off employees more frequently, which may indicate that they are being cautious as they assess the prospects for the second half of the year,” he noted in a note on Thursday.
Raising its benchmark lending rate in an attempt to slow the economy, the Federal Reserve has been fighting inflation.
Even while the labor market hasn’t yielded to these attempts thus far, staying strong for the previous 18 months despite 11 rate increases from the Fed, Fed Chair Jerome Powell stated last week that demand has “cooled from its extremely high level of a couple of years ago.”
We would need to see increased readings for at least a month to be convinced that the trend has truly flipped, according to a report published on Thursday by Ian Shepherdson of Pantheon Economics.
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