71 Percent of US Companies Lay Off Workers
According to a recent study, more than 70 percent of US companies have resorted to massive layoffs as consumer spending and sales were down amid financial crisis. Meanwhile, some companies said that layoff have its own negative ramification as human resources are considered as one of the most important element for a successful business.
Labor market continues to weaken as economic slowdown in the US remains the country’s biggest problem.
According to a recent study, more than 70 percent of US companies have resorted to massive layoffs as consumer spending and sales were down amid economic crisis. Despite such trend, some business owners still believe that work reduction has its own risks as human resources is considered to be one of the most important elements for a successful operation.
While many companies have resorted to layoff to cut cost, some experts said that it may even be costlier in some cases since businesses are required to pay laid off employees with severance payment that will depend on their position and years of working in the company.
Another disadvantage of lying off workers is the company may not be able to maximize its productivity when the economy starts to bounce back from recession.
Meanwhile, recruitment agency Challenger, Gray & Christmas said that more than a quarter of its surveyed employers admitted to have implemented pay cuts or bonus-free payments.
Earlier report said unemployment rate in the country has reached to 8.5 percent which is expected to climb 10 percent or more before the year ends. Meanwhile, analysts said that labor market will still remain weak for three or more years with unemployment rate always near to 5 percent.
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