Catherwood LibraryILR School

Businesses are cutting more jobs, and cutting them a lot faster than in previous economic downturns. In an effort to avoid even greater financial troubles, companies seem to be slashing payrolls in advance of worsening trends hoping to secure themselves financially stable conditions for the near future. Job losses are spreading to industries beyond the financial and housing sectors too, as evidenced by recent cuts in technology and healthcare (e.g. Yahoo Inc. and Merck & Co.). The cuts may save firms in the short term, but as unemployment spikes nationally, a deteriorating job market only decreases consumer spending power and slows potential economic recovery. The result could be an even deeper and longer recession than expected.