Rising layoffs are hammering American workers, spelling more pain to come for consumer spending, the housing market and the broader economy.
New claims for jobless benefits increased by more than expected last week, the Labor Department said today. And companies from Goldman Sachs to Yahoo have announced thousands of layoffs in the past few days as the financial crisis, tighter credit, rising foreclosures and myriad other woes take their toll on the economy.
The employment outlook for Americans will likely get worse, former Federal Reserve Chairman Alan Greenspan said today.
“Given the financial damage to date, I cannot see how we can avoid a significant rise in layoffs and unemployment,” Greenspan told a House committee.
The Labor department said new applications for unemployment insurance rose 15,000 to a seasonally adjusted 478,000, above analysts’ estimates of 470,000.
The Goldman Sachs Group Inc. said today it will cut about 3,260 jobs, or about ten percent of its work force, in the face of what Greenspan called a “once in a century credit tsunami” that has claimed several of Goldman’s rival investment banks.
Also today, Chrysler LLC said it will cut 1,825 jobs and Xerox Corp. said it plans to eliminate 3,000 positions, or 5 percent of its work force. (AP)
