WASHINGTON — The recession is killing jobs at an alarming pace, with tens of thousands of new layoffs announced Monday by some of the biggest names in American business — Pfizer, Caterpillar and Home Depot.
More pink slips, pay freezes and other hits are expected to slam workers in the months ahead as companies desperately look for ways to survive.
“We’re just seeing the tip of the iceberg — the big firms,” said Rebecca Braeu, economist at John Hancock Financial Services. “There’s certainly other firms beneath them that will lay off workers as quickly or even quicker.”
Looking ahead, economists predicted a net loss of at least 2 million jobs this year even if President Barack Obama’s $825 billion package of increased government spending and tax cuts is enacted. Last year, the economy lost a net 2.6 million jobs, the most since 1945, though the labor force has grown significantly since then.
The unemployment rate, now at a 16-year high of 7.2 percent, could hit 10 percent or higher this year or early next year, under some analysts’ projections.
Obama called on Congress on Monday to speedily enact his recovery plan, saying that the nation can’t afford “distractions” or “delays.”
The mounting toll was visible Monday as roughly 40,000 more U.S. workers got the grim news.
“We are seeing no improvement in labor-market conditions,” said Sal Guatieri, senior economist at BMO Capital Markets Economics. “This year could be as bad as last year in terms of layoffs.”
In response to deteriorating business conditions, Caterpillar Inc., the world’s largest maker of mining and construction equipment, disclosed nearly 20,000 job cuts, most of which already have been made. They include 5,000 new layoffs of white-collar workers.
