Layoffs spike in US, Europe as virus shuts businesses

WASHINGTON (AP) — Just a couple of weeks ago, Erika Vega hoped her temp job at a cafeteria would soon become permanent. But inste, viral outbreak shut down building where she worked and left her wondering where her next paycheck will come from.

Like millions of Americans and people around world, viral outbreak has left Vega in financial limbo, without income as her bills pile up. U.S. and global ecomies have come to a shuddering stop, unleashing a wave of layoffs that is much larger and moving much faster than job losses in previous downturns. y are swamping state unemployment benefits systems and leaving many Americans still working anxious about wher y will be next.

Vega, 45, worked as a food preparer and dishwasher at a lower Manhattan office tower until last Thursday. company that owned cafeteria liked her work and said y wanted to hire her permanently. But she was still a temp when building closed and her staffing ncy says it has more work available as city has shut down bars and restaurants.

“ people who worked for company get paid to stay home, but I don’t,” she said. “Everybody wants to be safe and be at home but at same time, we have bills that need to be paid.”

Tens of thousands of laid-off workers have alrey flooded state unemployment websites across country to apply for jobless benefits. In week ending March 14, number of people seeking unemployment aid soared by 70,000 to 281,000 , Labor Department said Thursday.

That figure is still low historically, but it may soon surpass record high of 650,000 in January 2009.

Many states are alrey reporting big increases in benefit applications this week, which weren’t included in Thursday’s figures.

In Ohio, more than 48,000 people applied for jobless benefits just this Monday and Tuesday. That’s up from 1,825 in same two days prior week.

And in neighboring Pennsylvania, about 70,000 people sought unemployment aid on Tuesday, six times total for entire previous week. A flood of claims has crashed unemployment claims websites in New York, New Jersey and states across nation.

Layoffs are rippling through many companies, large and small. Each one means less income for those out of work, forcing m to cut spending, which can push still or businesses to cut jobs. Marriott International said Tuesday it has begun to furlough tens of thousands of employees. Furloughs are essentially temporary layoffs. Furloughed workers can receive unemployment benefits.

three major American automakers are temporarily shutting ir rth American factories, idling 150,000 workers. So are Toyota and Honda.

Smaller companies have shut ir doors with little time to prepare. Restaurants, bars, movie aters, gyms, and or firms have been ordered to close by states and cities. In Portland, longtime independent bookseller Powell’s closed its five stores last weekend and has since laid off more than 300 workers. Compass Coffee, a small chain in Washington, D.C., has laid off 150 workers, or about 80% of its staff.

travel industry is at risk of being particularly devastated, with airlines grounding planes and hotels increasingly empty. U.S. Travel Association predicts that 4.6 million jobs in industry could be lost, which by itself would push unemployment rate to 6.3%, from its current level of 3.5%.

Jon Bortz, CEO of Pebblebrook Hotel Trust, which owns 54 hotels in major cities including New York, San Francisco and Seattle, said occupancy levels have dropped into single digits. company has laid off more than 4,000 of its 8,000 employees, and is likely to let go ar 2,000 by end of March, he said.

“We are looking at closing doors at more than half of our properties,” he said.

Vega, former cafeteria worker, said her husband was scheduled to have hernia surgery next week, but was told hospitals are overwhelmed and operation has been postponed. Her husband is still working for New York’s bike sharing program, City Bike, sanitizing bicycles.

“At least one of us is still working, but I don’t kw how much longer he can go on like that,” she said.

In Europe, job losses are piling up by hundreds of thousands, though solid figures are t yet available.

Airlines have anunced tens of thousands of job cuts alrey, including 7,300 at rwegian Air alone, while UK airline Flybe collapsed with a loss of 2,000 jobs.

auto industry is also likely to suffer. In Spain, about 100,000 people have been laid off alrey by one estimate, with Volkswn’s local unit putting 14,000 on temporary unpaid leave after idling production.

In Las Vegas, where goverr has ordered casis, restaurants and or nessential businesses to close for 90 days, Andrea Henderson has been laid off from her job as a dealer supervisor at Bellagio casi-resort. She was laid off once before, after Sept. 11, 2001, terrorist attacks, but that was only for five days. This time, one kws how long it will last.

“If it stretches into three months, n we’ve got a problem,” she said. “We’re just hoping that it doesn’t extend into late spring. That would suck.”

Jessica, 35, who asked that her last name t be used, decided with her husband in January to move from Seattle to Atlanta after her husband accepted a new job with higher pay at Delta Air Lines.

w, with air travel tumbling, she worries that he will be laid off — company has cut most of its contractors — and couple spent ir savings on move. She fears y might have to declare bankruptcy.

“Who knew four months ago when we me this decision that world would be in position it is w?” she asked. “re’s an element of standing back and watching a train wreck happening that you can’t stop and you didn’t cause.”

Some firms are struggling but have figured out how to avoid layoffs, so far. In Neva, Mand Sales Pros, a telemarketing firm, has lost four clients. To save Las Vegas-based company from losing more business — and laying off employees — CEO Carrie Simpson has lowered rates for her or clients, and her 24 staffers have all agreed to take pay cuts to keep everyone employed.

Simpson has cut her own pay too.

“We will all make $10 an hour while we brace and ride out fallout from this,” she said.