Texas is Now Facing Tens of Thousands of Painful Layoffs

July 11, 2024

Texas is now facing tens of thousands of painful layoffs as more businesses advise of upcoming job cuts in the state.

It’s important to note that under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide 60 days’ notice before laying off 50 or more people at a single site.

This week, two new businesses have filed WARN notices with the Texas Workforce Commission.

ShipBob has advised that it is laying off a total of 51 staff in North Texas on September 19.
And ISS Action is laying off a total of 197 staff in Harlingen on August 31, according to the latest WARN data.

Other recent WARN filings of companies advising of upcoming layoffs include:

Zachry Holdings announced a whopping 4,400 job cuts when they declared bankruptcy.
The Compass Group/Fresh & Ready Foods are laying off 65 employees in Dallas on August 30.
Ardagh Glass Packaging laid off 220 employees in Houston on July 1
Southeast Service Corporation Services For Education is laying off 65 staff in Kingsville
Charter Communications, known publicly as Spectrum, is planning to lay off 230 employees at its Austin call center in August. According to a spokesperson, the decision came as the company prepared to shut down the Austin facility.

Nearly 37,00 workers across Texas have been laid off since the beginning of the year, a substantial increase from the 26,161 job losses recorded during the same period in 2023, according to a Challenger report.

This layoff spike has cast a shadow over the state’s employment landscape, leaving many families grappling with financial uncertainty and job insecurity.

Compounding the problem is a dramatic drop in new hiring announcements, which have plunged by a staggering 50% compared to the previous year.

Across the United States, employers have announced plans to hire just 50,833 workers, the lowest total in the first five months of a year since 2014.

The challenges faced by Texans seeking employment has grown exponentially this year.

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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.”

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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia

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