US workers permanently lose 3.8 million jobs

The number of workers in the US that have permanently lost their jobs surged 345,000 in September to a seven-year high of 3.8 million, up to 35.6 percent in September from just 11.1 percent in April.

The labor market had already sunk to a 19-year low in February, just before the pandemic erupted in the United States.

Gus Faucher, the chief economist at PNC, said that the situation was worrisome not only for the workers affected but also for what it means about the recovery.

The US has rapidly recovered over half of the jobs lost during the pandemic.

In September, another 661,000 jobs were added as more businesses reopened and health measures were lifted.

However, the US jobs market recovery is losing momentum.

The numbers showed that what was initially thought to be temporary job losses have become permanent.

American Airlines and United Airlines also announced plans to cut a total of 32,000 jobs.

In the past few weeks, major companies including insurance giant AllState, Disney, and Raytheon Technologies have each announced thousands of layoffs, while Goldman Sachs is also cutting hundreds of jobs.

Seema Shah, the chief strategist at Principal Global Investors, warned that "economic scarring" is likely to become more apparent in the fourth quarter as more firms finally report closures and job cuts.