New Danger Emerges in America: Layoffs Approach 2009 Financial Crisis Levels
Jakarta, CNBC Indonesia - Layoffs in United States (US) factories are approaching the highest level since the end of the global financial crisis in 2009. The figure is also nearing levels seen during the Covid-19 pandemic in 2020.
This refers to a report from S&P Global on Tuesday. Concerns are mounting over global demand and rising costs.
In fact, the preliminary US Manufacturing PMI for June stood at 55.7, the highest figure in 49 months. That number edged up from 55.1 in May.
Output increased at a pace last seen in July 2021, driven by the sharpest surge in new orders in more than four years.
However, the number of workers declined for two consecutive months. This is because companies are prioritising cost control over still-high raw material prices and demand uncertainty.
"The most worrying aspect is the decline in employment, especially in the manufacturing sector," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, as quoted on Wednesday (24/6/2026).
"Factory layoffs have reached the highest level since 2009 if the pandemic is excluded, reflecting concerns over the sustainability of the recent demand upturn as well as worries about rising raw material costs," he added.
Despite concerns about layoffs in the manufacturing sector, the overall employment picture in the US has been largely solid this year. There has been a strong increase in four out of five months.
According to the US Bureau of Labor Statistics, manufacturing employment has increased by 23,000 in 2026.
However, quoting CNBC International, companies have been under pressure this year due to a resurgence of inflation caused by surging energy prices and the possibility of a rate hike or delay by the Federal Reserve (The Fed).
"The ceasefire and the possibility of a long-term deal with Iran have triggered a decline in oil prices, which in turn has helped restore confidence among businesses," Williamson said, offering a positive hope.