Coronavirus: Layoffs begin in US as market fears drive stocks down

The first layoffs and job losses caused by the coronavirus pandemic are already being seen in the United States, and experts say the situation may be about to get much worse.

The layoffs come as stock markets have plummeted due to concerns surrounding the virus, and the uncertain future that could lie ahead as countries enact increasingly strict travel guidelines — including a complete lock down for the entire country of Italy.

After an historic 11-year bull market came to an end, coronavirus now has many fearing that a decade long spree of economic expansion will also come to an end. The virus has squeezed hotels, airlines and travel agencies, with other industries are likely to follow.

“Companies that are directly involved in this first phase of the spreading of the coronavirus — airlines, hotels and cruise lines ,obviously — that's where you will see a dramatic drop in demand,” Andrew Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm, told CBS News. “If it persists, it'll lead to layoffs.”

In some areas of the country, workers have already begun to be told they are no longer needed.

According to the Washington Post, for instance, around 145 drivers at the Port of Los Angeles have been told they are no longer required, as goods from China have begun coming in at a slower rate. A stage lighting company in Orlando has laid off around 100 of its 500 employees, too, and a hotel in Seattle has shut down an entire department due to the virus spread.

“We will definitely see an effect on jobs from the coronavirus, and it could be pretty large in leisure and hospitality,” Julia Pollak, a labour economist at ZipRecruiter, told that newspaper. “The first thing we’ll see is a reduction in hours. We hear many reports of employers cancelling staff everywhere except in health care.”

The layoffs may soon impact transportation workers as well, with John Feltz, director of the Transport Workers Union train division, saying that their workers — including seven regional rail lines as well as Amtrak — have come forward to express concerns.

“We are all very concerned for ourselves and our families with the virus that’s going on,” he told CNN. “They are very concerned and yet they do go to work every day.”

Beyond layoffs, some workers in America may struggle due to paid sick leave concerns as well, with Republicans in Congress recently tanking a bill that would have required paid leave across the country if workers report flu-like symptoms (in rejecting the bill, they said the federal government should pay for the time off instead of small businesses).

Elsewhere, states like New York have announced that government workers would receive paid sick leave if they need to self-quarantine. Some businesses, including the restaurant chain Olive Garden, have also introduced paid sick leave for employees due to the coronavirus outbreak.