An essential company now makes unexpected layoffs in Illinois after addressing a significant $6.6 million budget shortfall.
Howard Brown Health, a key healthcare provider in Chicago, laid off a total of 43 employees on Monday.
Interim CEO Robin Gay acknowledged the challenging situation in a letter to employees, stating, “We cannot continue to do that if we want to sustain our organization and continue to serve the patients who rely on us for the long term.”
The layoffs, which make up 7% of the company’s staff, will take effect on August 30.
Many of the affected positions were funded by the $1.6 million Howard Brown received through the American Rescue Plan, a federal government initiative.
This move follows the closure of two clinics in May, also due to financial difficulties.
Union leaders expressed their frustration, noting that employees were abruptly locked out of all systems on Monday, preventing them from completing patient visits.
This incident mirrors last year’s layoffs of 61 employees in January 2023, for which Howard Brown has yet to provide back pay.
Howard Brown Health operates the Broadway Youth Center and nine clinics across Chicago, alongside three locations of its resale shop.
Plans are underway to close two more clinics by early fall: one at 2800 North Sheridan Road and another at Thresholds South, 734 W. 47th St.
Are you concerned about layoffs now hitting the health sector?
Have you or anyone you know been affected in this industry?
Leave your thoughts below.
For more layoff news and updates like this, opt-in for push notifications.
Also Read: Retirees Will Now Receive More Money For Social Security
Other Economy News Today
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
For more news and updates like this, opt-in for push notifications.
Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Our readers can now donate $3 per month to support independent journalism.
For daily news and updates on your favorite stories, opt-in for push notifications.
Follow Frank Nez on X (Twitter), Instagram, or Facebook.
Support Independent Journalism ✍🏻
Support independent journalism for just $3 per month!
Your contributions help power Franknez.com as the cost of widgets and online tools continue to rise.
Thank you for your support!
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.