Nearly half of the nation’s net job losses in early spring have been recouped, economists say, though recovering the rest could take a few years.
In the depths of the COVID-19 pandemic in early spring, with revenue plunging 70%, Dallas software company CEO Rishi Khanna quickly decided to cut the salaries of all 12 of his employees rather than lay some of them off.
The layoffs and furloughs of more than 25 million U.S. workers have understandably fueled most of the nation’s anguish over the coronavirus recession. But that's not the only economic setback for workers: Many companies are trimming employees’ hours or wages to reduce costs – either instead of, or in addition to, the job cuts.
and payroll processor ADP. In the second quarter, the wages and salaries of private-sector workers edged up 0.4%, the smallest increase in five years, according to the Labor Department’s Employment Cost Index.Most affected by the reductions in hours or pay are furloughed employees returning to work, socking them with a one-two punch of financial distress. And while cuts in hours – which result in lower weekly paychecks, of course – are more prevalent, a historically large share of U.S.
But in July, after she exhausted the federal money and with sales still down 80%, she scaled back their schedules to 20 to 30 hours a week. Among all workers, including those whoweren’t laid off or furloughed, 8.8% saw their hours reduced in August, up from 6% a year earlier, the Gusto data shows.While lower-paid hourly workers are more likely to see their schedules, rather than their hourly wages, trimmed, salaried employees are more likely to suffer outright pay cuts, Gusto’s data shows.
And while employee schedules can be expanded as business comes back, wages can be more difficult to restore, Moody’s DeAntonio says. Pay cuts also can hurt morale by implying that workers are performing poorly, Gustafson says.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to Stop CEOs From Laying Off Workers While Earning FortunesImagine the last six months if CEOs had cut their own salaries before any workers were laid off.
Read more »
Dozens killed after gold mines collapse in eastern DRCMore than 50 people killed after heavy rains cause three 50-metre-deep gold mines to collapse in Democratic Republic of Congo
Read more »
Trump's unemployment program pays up to $1,800 in extra benefits to workers who qualifyUnemployed workers can expect to get a $300 weekly supplement to jobless benefits for a period covering up to six weeks, according to a federal official.
Read more »
The 100 Best Deep Cuts by 21st Century Pop Stars: Critics' PicksTo pay tribute to the lesser-celebrated gems hiding in plain sight within the pop sphere, Billboard compiled a list of our 100 favorite deep cuts from pop stars this century.
Read more »
Facebook to give paid time off to employees who volunteer as poll workersFacebook will give additional paid time off to employees who volunteer as poll workers during the election, company CEO Mark Zuckerberg said Friday
Read more »