Wednesday, April 15, 2020

WSJ: The Layoff Wave Goes Tidal

First the blue collar world suffered, now Covid-19 layoffs are hitting white-collar workers.  The Wall Street Journal reported today:

The first people to lose their jobs worked at restaurants, malls, hotels and other places that closed to contain the coronavirus pandemic. Higher skilled work, which often didn’t require personal contact, seemed more secure.

That’s not how it’s turning out.

A second wave of job loss is hitting those who thought they were safe. Businesses that set up employees to work from home are laying them off as sales plummet. Corporate lawyers are seeing jobs dry up. Government workers are being furloughed as state and city budgets are squeezed. And health-care workers not involved in fighting the pandemic are suffering. ...

The consensus of 57 economists surveyed this month by The Wall Street Journal is that 14.4 million jobs will be lost in the coming months, and the unemployment rate will rise to a record 13% in June, from a 50-year low of 3.5% in February. Already nearly 17 million Americans have sought unemployment benefits in the past three weeks, dwarfing any period of mass layoffs recorded since World War II. ...

Baker Donelson, a 700-lawyer firm with some 20 offices in the Southeast and mid-Atlantic region, has reduced compensation for associates and staff by 20%. Timothy Lupinacci, the firm’s chairman and chief executive, said some clients have asked the firm to stop work or defer payments. “Law firms are not going to be top of the priority,” he said.

How we work from home isn’t the problem, said Karen Richardson, executive director at the National Association of Women Lawyers. “It’s: Will there be work for us to do?”...

 While the coronavirus has strained emergency services and intensive-care wards, hospitals have been cutting the elective surgical procedures and routine care that normally pay the bills in order to free up resources.... Rest of article.
 Ouch.

45 comments:

Anonymous said...

All this and the numbers were no where close to being accurate. The biggest failure was New York State where their numbers were three times worse than any state in the rest of the country.

It's time to move on and quit causing more suffering.

Anonymous said...

Maybe there should be a class action lawsuit against Bill Gates for his failed model.

Anonymous said...

Hopefully all those people front ran the FED on the bond ETF's and can enjoy the same profits as the smart money.

Now, with the sarcasm turned off, when "the people" figure out what really happened over the last couple of months, Occupy ain't gonna have nothing on what's to come.

Anonymous said...

It's going to get a lot worse too. The fundamentals of our economy were screwed up before Covid-19. Now the fed is intervening and propping up the hedge funds and all bad actors for the last 2 recessions. And they are doing it with our future earnings.

Anonymous said...

Isn't that the goal? To push us towards a depression where those in power have all control over our lives and we're supposed to be obedient servants waiting on our stipend that barely gets us through?

People think Chinese people enjoy eating bugs and bats, they eat what they can with a socialist government that has been in power for far too long.

Anonymous said...

Been warning y'all for weeks to purchase as much ammunition as you could afford. The left wants civil war.

Anonymous said...

$ and the economy is all smoke and mirrors anyways. Its all about "confidence". As confidence evaporates, so does the economy. Confidence will hit zero soon

Anonymous said...

If anything positive comes from this panic I hope that it is that everyone remembers some of the lowest paid workers in our economy are crucial to keeping us fed and comfortable.

Anonymous said...

If we were a modified socialist country, we wouldn't need money. Everyone would keep producing and providing services as before, but food, gasoline, healthcare, etc. would be free.

Abolish law suits and put the lawyers to work picking crops or other blue collar work.

Cars would be free, but no luxury cars.

All loans would be forgiven.

Reduce government to the bare necessities.

Adopt Bernie's and AOC's ideas, except for the tunnel under the ocean. Jeesh.

Keep law enforcement, but thieves would have a hand cut off, and rapists, well, ya know. Murderers or serious assault suspects would face an immediate firing squad.

This is a no brainer. Just do it!

Anonymous said...

Absolutely perfect timing to have millions of unemployed Americans join the military just as the war drums are beating in the Taiwan Strait.

Say it again Kingfish, Wuhan Virus!

Anonymous said...

Breaks my heart to see lawyers getting laid off.

Anonymous said...

It’s predicted the federal budget will be somewhere around a $4 trillion deficit this year. We can’t keep cutting taxes and increasing spending at historic levels. At some point, there will have to be an adult in the room who can tell the American public the hard truth and show some actual leadership.

Anonymous said...

All while saving a few thousand lives of people who were destined to die sooner than later anyway. This whole covid-19 has a Rham Emanuel ring to it. "You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before.". Im not a tin foil hatter, I think the president is just "ok", but the other side of the isle is politicizing this to pass legislation and funding for pet projects, illegal aliens, vote by mail(which you know they would love not to have to show up in person), etc. What in the actual hell does this have to do with the virus at hand?

Anonymous said...

There are several local clinics and some departments at larger hospitals threating layoffs. Trust Care has already laid off a doctor or two and a few nurse practitioners and threatening more. Several Depts at UMMC are talking about it too. Its a state run hospital so how does that work? I'd be thoroughly pissed off if Biff at MDOT was allowed to draw a salary sitting on his ass while I make telehealth calls and go into the hospital and clinic to do something and get laid off. Or if Six Figure Salary Doctor still gets his salary while nurses and others are told sorry, not sorry and not taking a pay cut. Do these places not make a profit and keep some of it? Do they work just to break even? I may complain about my boss and job sometimes, and we will lose some money, but the words terminate, shut down, or layoff has never been uttered. Really makes me appreciative of what organization and the leadership I work for. Instead of sucking all of the profit out to send the wife and kids on vacations, or living a SEC lavish lifestyle, he has set up a rainy day savings and we are going to be ok. This situation should be an eye opener as to how valued you are as an employee, and how responsible your employer is.

Anonymous said...

Relaunch economy May 1st. Announce it NOW! Just take temperature of everyone entering Kroger, Wal Mart, etc. and issue masks at the door. You wear em or you go home rednecks. Glove dispensers by touch points like gas pumps. Hand sanitizing stations everywhere. Limit restaurants to 6ft rule inside and carry out for another month or so. Lets Roll!

Anonymous said...

I dont know how many of you are into precious metals. But it's getting hard to find 1oz. silver bars and fractional silver from the big online retailers like JM Bullion. The only silver readily available is collectable coins priced way above the spot price of silver. It's like some very rich people know that greenbacks are soon to be worthless and converted it all to precious metal. If you are into something like guns and tools, or useful collectibles like cars and boats, buy what you can now. It will be worth more than your money will if we go belly up.

Anonymous said...

Lawyers are going broke and out of work? Trump really is making America great again!

Anonymous said...

I believe the Chinese government planned this. The have had this since November and kep it hidden for two months. Then lied about it. WHO covered for them. After it was obvious we would have it, many downplayed it including Fauci and the major news media. The expressed outrage over Trump issuing a travel ban. No they are blaming Trump for not acting quickly enough. I believe the Democrats saw an opportunity and the media hyped it spreading fear and hysteria. The Democrats want a depression first, to take power in November, then use the crises to take more of our freedoms and increase government power. Easier to rule of a country full of poverty than a country full of self supporting people. This is step one of of their plan to enslave us.

Anonymous said...

@1:09 PM, So true! I mean, it's always worked like that in communist countries. What's another 100 million dead among comrades.

Anonymous said...

The pork that was included in the recent spending spree was utterly ridiculous. Our politicians should be ashamed, but we know they are only ashamed of not making enough money for their friends and special interests.

Anonymous said...

last time i checked, china was communist, not socialist. and yes, under communism people do resort to eating anything. it’s a problem living in a country where the ultra wealthy live opulently and keep the masses suppressed under a strong military and economic structure which crushes them.

This Too Shall Pass Chicken-Little said...

Doom and Gloom! Suck It Up.

In 2009, the 60,000 employee corporation that employed me furloughed every employee from the top executives to the janitors spread throughout the business. That applied to every swinging D and skirt who drew a check.

Hourly as well as salaried and non-exempt employees (including VPs, Corporate Lawyers, Division Directors) took a 20% pay cut for months on months. And if you typically worked at one of the facilities five days a week and were non-exempt, you were prohibited from showing up (or being paid) one day a week and were also not allowed to work those days from home. In order to meet the DOL and IRS bar for furloughing non-exempt, zero work could be done, claimed or reported 20% of every work week.

In addition to taking that 20% pay cut, imagine the effect on your annual salary and your contribution and match to your 401k, which was already suffering a kick in the gut.

This ain't America's first furlou-deo.

Anonymous said...

There is literally no such thing (or record of) a 'modified socialist country' so you wasted a lot of keystrokes with your What-If.

Modified socialism is about as possible as partly-pregnant.

Anonymous said...

Some of you guys need to catch up. The Treasury and the Fed took thing full socialist last week.

It's just for those who were smart enough to front run them.

If you're bitching about people getting food money just wait until you figure out what the guys holding crappy HY bonds made out with.

Place your vitriol in the right place and if you're going to punch, learn to punch up, not down.

Anonymous said...

@2:07, the USA is one of the most socialist nations in the world that pretends to be capitalist on the surface. Every bailout our government gives to banksters and stock market gamblers allow them to subsidize losses while letting them privatize profits. Every utility company that gains a government enforced monopoly isn't capitalism.

SNAP/EBT profits the industrial farms and food producers more than the single mother trying to feed her children.

Frank Griffin said...

This site has turned into full-time Infowars. Has comment moderation been disabled?

Johnny Weir said...

Now, the banking system is really taking a hit! I am a member of Magnolia Federal Credit Union. For a week now I cannot log into my account! An e-mail was sent that the app is overloaded by stimulus checks.


Anonymous said...

Now, the banking system is taking a hit!
I belong to Magnolia Federal Credit Union and cannot log into my account for a week.
Magnolia Federal Credit Union sent an email stating the app is to blame!
When you really need to stay up with your money they fail you.
Don’t ever open an account with MFCU! They are a joke.
Magnolia Federal Credit Union
ATTENTION ALL MEMBERS
We are sorry to report that our online and mobile banking platforms are experiencing intermittent issues. Banno, the company we use to host these platforms, is said to be under unprecedented demand and it has caused unexpected issues for all of their clients. Other mobile and online platforms from industry competitors are experiencing similar latency and degradation issues as well.
The anticipation of the pending government stimulus checks are thought to be the cause for this unusually high online and mobile banking activity, and it has caused many online banking platforms to go down entirely.

Anonymous said...

@frank Griffin, that's probably just one of your conspiracy theories.

Anonymous said...

This is a great opportunity for Baker Donelson to let go of several employees that moonlight in timber.

Anonymous said...

The President has declared a Federal Disaster for all states. The States under the declaration will receive documentation from all healthcare facilities and first responders for all cost incurred responding to COVID-19. It is then submitted to FEMA for reimbursement and then like magic the Feds send money to the state who reimburses the first responders and the healthcare cost. Where does the money come from? Beats the hell out of me!!!

Anonymous said...

Baker Donaldson reduces bonuses by 20%? I guess Alexander/Seawright will have to figure out how to scam more people on timber contracts.

Anonymous said...

Glad to see attorneys finally gonna share in the pain. I know several attorneys who were boasting their workload hasn’t slowed down a bit. They laughed that the only the masses deal with furloughs and that’s why they went to law school...to always have a job. Interesting that I haven’t heard from them in a week or so. Karma

Anonymous said...

people hate attorneys on any given day. Let their kid get arrested, their spouse cheat, a grandchild start draining grandmoms life savings, their neighbor put a fence on their property line, a speeding truck driver destroy their car and seriously injure a family member, etc...an Attorney maybe the most important person they consult, next to God

Anonymous said...

" Glad to see attorneys finally gonna share in the pain. I know several attorneys who were boasting their workload hasn’t slowed down a bit. They laughed that the only the masses deal with furloughs and that’s why they went to law school...to always have a job. Interesting that I haven’t heard from them in a week or so. Karma "

So true.

I heard the same boasts from brokers back in the 80's . . . until the stock market crash of 1987. They were a pathetic site (standing in a very long line) at the old Southport Unemployment Office at Ellis Avenue and Highway 80.

There is something to Karma.

Anonymous said...

2:04 - who is feeding you the garbage you wrote about wage earners (non-exempt)? You pay them by the hour, if they work.

You listening to Chockway again?

Anonymous said...

@1:29
Hey, 6 figure doctor here... you obviously aren't aware that physicians eat what they kill. No cases= zero money. Hey guess what we aren't eligible for stimulus checks either. We just pay the nurses at our clinic no matter our situation. Just think I have 4 kids. 1 at first pres and 3 at JA right around the corner. On another note those that bash doctors for complaining about the ban on elective cases just know this... those passing these laws aren't effected by it as they are paid no matter what.

Anonymous said...

I hate that for you 6:26. But, nobody made you put your four kids in private school or buy four vehicles and a five garage house with toys out the wazoo.

It's sad that doctors don't know how to 'hitch up they britches'. Like a fish out of water.

Kingfish said...

While you focus on the doctor and his income, why don't you think of everyone else who depends on that doctor.

Doctors practice has several nurses and assistants. Don't forget the techs and secretaries. See any six figure cats in those groups? Nope. They are all out of work. Know what else they are? They are your middle class that drives the economy.

One thing I've noticed on FB. My friends who scream the loudest for shutdowns are also government employees. In other words, they get nice guaranteed government checks.

Anonymous said...

I think it is time to replace the doctors and lawyers with AI.

Anonymous said...

9:04 pm

You are correct. Everyone bitches about attorneys, but when you need one, a good one is worth his weight in gold!

Anonymous said...

@9:04
Thank you, it's about time someone said that. Everyone hates lawyers until they need one. To all the lawyer haters out there: we would be out of a job if you just learned to treat each other like human beings. We exist because of all the stupid stuff people do to each other, much of which is exposed on this blog. Obviously there are bad apples in the legal profession, as in every profession, but on the whole we don't start fights, we just finish them.

Anonymous said...

10:39 KF, you're right.

Many current and former past govt workers confirm that there's tremendous dead weight in govt ranks... like 1 or 2 out of 10-12 actually produce while others slide. NOW IS THE PERFECT TIME TO RIGHT-SIZE OUR BLOATED GOVT RANKS!

This opportunity may not come back around for a long time. Expect the govt to respond like the private sector must... cutting and adjusting going forward.

Anonymous said...

1:45, I would hope if you have learned anything from this fiasco, it's that making systems (whether a hospital or a supply chain) "efficient...lean...nimble" as so many MBA's love to blabber about, makes those systems FRAGILE and dangerous in crisis.

Yes, there is oversize and redundancy in an anti-fragile system-everything has a cost. It's one of the reasons governments survive. I am sure we all want better service from bureaucracy but this Reaganite, midwit mantra of "treat gubmint like a business" is a short sighted stance. (How did those super efficient businesses do providing PPE when it was needed?)

And before I get accused, I am neither a government employee nor a "Dem'crat". I am for free markets far more than most, but if the institutions don't pay the cost to be robust, then you will pay the fee when they fail.

Anonymous said...

2:04 - who is feeding you the garbage you wrote about wage earners (non-exempt)? You pay them by the hour, if they work.
April 15, 2020 at 11:25 PM

What part of the post do you dispute. I doubt you even know the meaning of non-exempt. Non exempt employees are NOT paid by the hour. However, during a furlough, of 20% compensation loss, their monthly salary is reduced accordingly and they are not allowed to work 20% of the five day work week.

You need to stick to making coffee before the manager arrives to stroke you.

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