As employers reacted to the emerging COVID-19 crisis last spring, pay cuts proved a common strategy. An April 2020 analysis of Securities and Exchange Commission filings by Gallagher showed that public companies were more likely to execute pay reductions than layoffs. Dive Insight:
But a glance at employment data from the U.S. Bureau of Labor Statistics demonstrates how prevalent job loss became during the early months of the pandemic. By April 2020, the unemployment rate surged to 14.7%, up from 4.4% the previous month.
Source www.hrdive.com U.S. workers had lost some $1.3 trillion in annualized income due to the pandemic by May 2020, according to a report from the Society of Human Resource Management and Oxford Economics. That same month, survey results from Strada Education Network suggested that a third of workers who had lost a job, income or hours due to COVID-19 had started a new job. And while the national unemployment rate sunk to 6% last month, research has suggested that, for many employers, the pandemic disrupted salary increase plans for 2021.
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- Financial rebounds delayed after pandemic pay cuts, survey finds
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