Jobs Lost Due to Bankruptcies Hit Highest Level in Years
January 2, 2020
Unemployment may be at a decades-long low, but that doesn’t mean that people aren’t losing jobs. A new report has found that 2019 saw 62,100 jobs lost due to the employer declaring bankruptcy. This was the highest number since 2005, meaning that bankruptcy accounted for more jobs lost last year than even during the last recession.
Researchers at Challenger, Gray & Christmas Inc. found that employers said they were going to eliminate more than 592,500 jobs, for reasons ranging from bankruptcy to restructuring, or because of trade difficulties and tariffs. The retail industry is the most likely to see losses, with 77,500 jobs lost.
The majority of bankruptcy-related layoffs were caused by retailers shutting down, resulting in 48,700 jobs lost.