New US companies are laying off employees as recession risks mount

Washington-SANA

A new survey showed that the number of American companies that are moving to lay off more of their employees is steadily rising, with the exacerbation of the risks of an economic recession in the United States, and the pessimistic outlook for labor markets this year.

The survey, conducted by the American Association for Business Economics and published by Fox Business, showed that 20 percent of the member companies in the Association expect employment to decline in the coming months.

The director of the association, Julia Coronado, said: “For the first time since the outbreak of the Corona pandemic in 2020, more participants in the survey expect to lay off a greater number of employees,” noting that the results of the new survey indicate widespread concern about an economic recession this year.

Coronado indicated that more than half of the respondents in the survey believe that the probability of an economic recession is at least 50 percent higher compared to last year.

The survey indicated that there are indications of a decline in the labor market in the face of high interest rates, recalling the expectations of Federal Reserve officials about high unemployment rates in the United States, due to the unprecedented and ferocious rise in interest rates, which means that a million Americans or more will lose their jobs this year.

Economists in the United States suggested that the rise in interest rates will continue to enter the US economy into a stage of recession next year, according to the latest quarterly survey conducted by the Wall Street Journal recently.

Basma Kannon

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