During economic slowdowns, it is generally the low-income workers who are the first ones to lose their jobs. However, the recent surge in claims for unemployment insurance (UI) in the US has affected a wider range of people.
By analysing the Census' Household Pulse Survey data between March 29 and April 10 and comparing it with a week around the same time in 2022, it was discovered that the number of unemployment insurance (UI) claims filed by Americans earning over $200,000 had increased by approximately 500%.
In the same period last year, only 18,100 individuals in this salary bracket had filed for initial UI but now that number has risen to 113,800.
Impact on white collar workers
The retail company Gap, which had already eliminated roughly 500 corporate roles in September, intends to implement further staff reductions in the department, as per a report by the Wall Street Journal.
3M, which has been affected by the decrease in electronics purchases, intends to cut its workforce by 6,000 people globally, with a particular emphasis on downsizing its corporate center.
In a memo sent to its employees earlier this month, it was mentioned that Amazon's Whole Foods Market terminated a few hundred corporate staff members, representing only 0.5% of its total workforce. The memo also specified that these job cuts would not result in the closure of any stores or impact any employees at distribution centres.
At the beginning of this year, General Motors had intended to eliminate the positions of salaried employees and executives. Fortunately due to 5,000 white-collar workers accepting buyout offers and leaving the company, GM managed to avoid any job terminations.
