Jobs are coming back. Businesses are reopening. But a year after the pandemic jolted the economy, applications for unemployment benefits remain stubbornly, shockingly high — higher on a weekly basis than at any point in any previous recession, by some measures.

And headway has stalled: Initial weekly claims under regular and emergency programs, combined, have been stuck at just above 1 million since last fall, and last week was no exception, the Labor Department reported Thursday.

“It goes up a little bit, it goes down, but really we haven’t seen much progress,” said AnnElizabeth Konkel, an economist for the career site Indeed. “A year into this, I’m starting to wonder, what is it going to take to fix the magnitude problem? How is this going to actually end?”

The continued high rate of unemployment applications has been something of a mystery for many economists. With the pandemic still suppressing activity in many sectors, it makes sense that joblessness would remain high. But businesses are reopening in much of the country, and employment and spending trends are generally improving. So shouldn’t unemployment filings be falling?

New evidence from California may offer a partial explanation: According to a report released Thursday by the California Policy Lab, a research organization affiliated with the University of California, nearly 80% of the unemployment applications filed in the state last month were from people who had been laid off earlier in the pandemic, gone back to work, and been laid off again.

Such repeat claims were particularly common in the information sector — which in California includes many film and television employees who have been sidelined by the pandemic — and in the hard-hit hotel and restaurant industries, as well as in construction.

Policy Lab researchers had access to detailed information from the state that allowed them to track individual workers through the system, something not possible with federal data.

California’s economy is unlike that of the rest of the country in myriad ways, and the pandemic has played out differently there than in many other places. But if the same patterns hold elsewhere, the findings suggest that the ups and downs of the pandemic — lockdowns and reopenings, restrictions that tighten and ease as virus cases rise and fall — have left many workers stuck in a sort of limbo.

A restaurant may recall some workers when indoor dining is allowed, only to lay them off again a few weeks later when restrictions are reimposed. A worker may find a temporary job at a warehouse, or pick up a few hours of work on a delivery app, but be unable to find a more stable job.

“This shows the oscillation of employed, unemployed, employed, unemployed — people cycling back into the system,” said Elizabeth Pancotti, policy director at Employ America, a group in Washington that has been an advocate for the unemployed. “We did not see that in previous recessions.”

What that instability will mean for workers’ long-term prospects remains unclear. Economic research has found that extended periods of unemployment can leave workers at a permanent disadvantage in the labor market. But there is little precedent for a period of such prolonged instability.

“We don’t know what happens if you’re out of work for two months, you come back to work for two months, you’re out of work for two months, you keep going back and forth,” Pancotti said.

The California data shows how the economic effects of the pandemic have been concentrated among certain industries and demographic groups — and how the consequences continue to mount for the most affected workers, even as the crisis eases for many others.

Nearly 90% of Black workers in the state have claimed unemployment benefits at some point in the pandemic, according to the Policy Lab analysis, compared with about 40% of whites. Younger and less-educated workers have been hit especially hard.

Those totals include filings under the federal Pandemic Unemployment Assistance program, which covers people left out of the regular unemployment system, a group that disproportionately includes Black workers. The record keeping for that program has been plagued by overcounting and fraudulent claims. But even a look at the state’s regular unemployment insurance program, which hasn’t faced the same issues, reveals remarkable numbers: Close to 3 in 10 California workers, and more than 4 in 10 Black workers, have claimed benefits during the crisis.

“That degree of inequality is mind-blowing,” said Till von Wachter of the University of California, Los Angeles, one of the report’s authors.

Many of those who lost jobs early in the crisis have since returned to work. But millions have not. The Policy Lab found that nearly 4 million Californians had received more than 26 weeks of benefits during the pandemic, a rough measure of long-term unemployment.

“We have solidly shifted into a world where a large-scale problem of long-term unemployment is now a reality,” von Wachter said. Black workers, older workers, women and those with less education have been more likely to end up out of work for extended periods.

Nationally, nearly 6 million people were enrolled as of late February in federal extended-benefit programs that cover people who have exhausted their regular benefits, which last for six months in most states. The aid package signed by President Joe Biden last week ensures that those programs will continue until fall, but benefits alone won’t prevent the damage that prolonged joblessness can do to workers’ careers and mental and physical health.

“The recovery needs to be on the scale of being a once-in-a-generation economic upswing to really pull those people back into the labor market,” Konkel said.

The latest data provides little sign of that happening. More than 746,000 people filed first-time applications for state unemployment benefits last week, up 24,000 from the previous week, according to the Labor Department. In addition, 282,000 filed for Pandemic Unemployment Assistance.

Most forecasters expect the labor market recovery to accelerate in coming months, as warmer weather and rising vaccination rates allow more businesses to reopen, and as the new injection of government aid encourages Americans to go out and spend. Policymakers at the Federal Reserve said Wednesday that they expect the unemployment rate to fall to 4.5% by the end of the year, a significant upgrade over the 5% they forecast three months ago.

“We’re already starting to see improvement now, and I think that will start to accelerate fairly quickly,” said Daniel Zhao, an economist at the career site Glassdoor.

But government aid can do only so much as long as the pandemic continues to limit consumers’ behavior. The pace of the recovery now, Zhao said, depends on a factor beyond the scope of normal economic analysis.

“The dominating factor right now is how quickly we can get vaccines in arms,” he said.

Jobs are coming back. Businesses are reopening. But a year after the pandemic jolted the economy, applications for unemployment benefits remain stubbornly, shockingly high — higher on a weekly basis than at any point in any previous recession, by some measures.

Jobs are coming back. Businesses are reopening. But a year after the pandemic jolted the economy, applications for unemployment benefits remain stubbornly, shockingly high — higher on a weekly basis than at any point in any previous recession, by some measures. And headway has stalled: Initial weekly claims under regular and emergency programs, combined, have been stuck at just above 1 million since last fall, and last week was no exception, the Labor Department reported Thursday. “It goes up a little bit, it goes down, but really we haven’t seen much progress,” said AnnElizabeth Konkel, an economist for the career site Indeed. “A year into this, I’m starting to wonder, what is it going to take to fix the magnitude problem? How is this going to actually end?” The continued high rate of unemployment applications has been something of a mystery for many economists. With the pandemic still suppressing activity in many sectors, it makes sense that joblessness would remain high. But businesses are reopening in much of the country, and employment and spending trends are generally improving. So shouldn’t unemployment filings be falling? New evidence from California may offer a partial explanation: According to a report released Thursday by the California Policy Lab, a research organization affiliated with the University of California, nearly 80% of the unemployment applications filed in the state last month were from people who had been laid off earlier in the pandemic, gone back to work, and been laid off again. Such repeat claims were particularly common in the information sector — which in California includes many film and television employees who have been sidelined by the pandemic — and in the hard-hit hotel and restaurant industries, as well as in construction. Policy Lab researchers had access to detailed information from the state that allowed them to track individual workers through the system, something not possible with federal data. California’s economy is unlike that of the rest of the country in myriad ways, and the pandemic has played out differently there than in many other places. But if the same patterns hold elsewhere, the findings suggest that the ups and downs of the pandemic — lockdowns and reopenings, restrictions that tighten and ease as virus cases rise and fall — have left many workers stuck in a sort of limbo. A restaurant may recall some workers when indoor dining is allowed, only to lay them off again a few weeks later when restrictions are reimposed. A worker may find a temporary job at a warehouse, or pick up a few hours of work on a delivery app, but be unable to find a more stable job. “This shows the oscillation of employed, unemployed, employed, unemployed — people cycling back into the system,” said Elizabeth Pancotti, policy director at Employ America, a group in Washington that has been an advocate for the unemployed. “We did not see that in previous recessions.” What that instability will mean for workers’ long-term prospects remains unclear. Economic research has found that extended periods of unemployment can leave workers at a permanent disadvantage in the labor market. But there is little precedent for a period of such prolonged instability. “We don’t know what happens if you’re out of work for two months, you come back to work for two months, you’re out of work for two months, you keep going back and forth,” Pancotti said. The California data shows how the economic effects of the pandemic have been concentrated among certain industries and demographic groups — and how the consequences continue to mount for the most affected workers, even as the crisis eases for many others. Nearly 90% of Black workers in the state have claimed unemployment benefits at some point in the pandemic, according to the Policy Lab analysis, compared with about 40% of whites. Younger and less-educated workers have been hit especially hard. Those totals include filings under the federal Pandemic Unemployment Assistance program, which covers people left out of the regular unemployment system, a group that disproportionately includes Black workers. The record keeping for that program has been plagued by overcounting and fraudulent claims. But even a look at the state’s regular unemployment insurance program, which hasn’t faced the same issues, reveals remarkable numbers: Close to 3 in 10 California workers, and more than 4 in 10 Black workers, have claimed benefits during the crisis. “That degree of inequality is mind-blowing,” said Till von Wachter of the University of California, Los Angeles, one of the report’s authors. Many of those who lost jobs early in the crisis have since returned to work. But millions have not. The Policy Lab found that nearly 4 million Californians had received more than 26 weeks of benefits during the pandemic, a rough measure of long-term unemployment. “We have solidly shifted into a world where a large-scale problem of long-term unemployment is now a reality,” von Wachter said. Black workers, older workers, women and those with less education have been more likely to end up out of work for extended periods. Nationally, nearly 6 million people were enrolled as of late February in federal extended-benefit programs that cover people who have exhausted their regular benefits, which last for six months in most states. The aid package signed by President Joe Biden last week ensures that those programs will continue until fall, but benefits alone won’t prevent the damage that prolonged joblessness can do to workers’ careers and mental and physical health. “The recovery needs to be on the scale of being a once-in-a-generation economic upswing to really pull those people back into the labor market,” Konkel said. The latest data provides little sign of that happening. More than 746,000 people filed first-time applications for state unemployment benefits last week, up 24,000 from the previous week, according to the Labor Department. In addition, 282,000 filed for Pandemic Unemployment Assistance. Most forecasters expect the labor market recovery to accelerate in coming months, as warmer weather and rising vaccination rates allow more businesses to reopen, and as the new injection of government aid encourages Americans to go out and spend. Policymakers at the Federal Reserve said Wednesday that they expect the unemployment rate to fall to 4.5% by the end of the year, a significant upgrade over the 5% they forecast three months ago. “We’re already starting to see improvement now, and I think that will start to accelerate fairly quickly,” said Daniel Zhao, an economist at the career site Glassdoor. But government aid can do only so much as long as the pandemic continues to limit consumers’ behavior. The pace of the recovery now, Zhao said, depends on a factor beyond the scope of normal economic analysis. “The dominating factor right now is how quickly we can get vaccines in arms,” he said.

Why are jobless claims still high? For some, it’s the multiple layoffs

Airline workers at risk of layoffs were given hope of a possible reprieve on Friday after House Speaker Nancy Pelosi backed another round of aid for the beleaguered sector.

Pelosi's statement helped boost shares of airlines that have already announced layoffs. But the prospect for the legislation still looked uncertain late Friday afternoon after House Republicans blocked an effort to fast track a proposal.

Pelosi called on US carriers to hold off on furloughs, signaling her endorsement of more payroll support, either as a standalone bill or as part of an overall relief package.

"The massive furloughs and firings of America's airline workers jeapordize the livelihoods of tens of thousands and threaten to accelerate the devastating economic crisis facing our nation," Pelosi said.

"Today, I am calling upon the airlines to delay their devastating job cuts as relief for airline workers is being advanced in Congress."

<a href="https://www.wionews.com/business-economy/layoffs-loom-for-beleaguered-us-airline-industry-331626">Also read:&nbsp;Layoffs loom for beleaguered US airline industry</a>

Pelosi had previously resisted a narrow bill focused only on airlines as she pressed for a broad economic package, but that was before major carriers announced more than 30,000 job cuts this week.

The first day of October concluded the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers.

On Wednesday night, American and United airlines said they would begin furloughing 19,000 and 13,000 workers, while indicating the moves could be walked back if there is a breakthrough in Congress.

But an effort by Oregon Democratic Representative Peter DeFazio to advance a proposal to extend the Payroll Support Program was blocked by Republicans who refused to allow the bill to proceed by unanimous consent.

An irate DeFazio took to the House floor to blast Republicans for allowing layoffs.

"They've lost their jobs, they've lost their health care, some of them are going to lose their homes," DeFazio said. "All because the Republicans in the House of Representatives would not agree."

American Airlines reiterated Friday that it would rehire staff if a congressional bills comes through, pointing to a message from Chief Executive Doug Parker that pledged to "reverse our furlough process and recall any impacted team members" if additional aid is approved in the next few days.

United said it is "eager to reverse the furlough process once Congress has passed legislation to extend the Cares Act Payroll Support Program."&nbsp;

United's share price jumped 2.4 percent to $36.01 and American rose 3.3 percent to $13.00

Airline workers at risk of layoffs were given hope of a possible reprieve on Friday after House Speaker Nancy Pelosi backed another round of aid for the beleaguered sector.

Airline workers at risk of layoffs were given hope of a possible reprieve on Friday after House Speaker Nancy Pelosi backed another round of aid for the beleaguered sector. Pelosi's statement helped boost shares of airlines that have already announced layoffs. But the prospect for the legislation still looked uncertain late Friday afternoon after House Republicans blocked an effort to fast track a proposal. Pelosi called on US carriers to hold off on furloughs, signaling her endorsement of more payroll support, either as a standalone bill or as part of an overall relief package. "The massive furloughs and firings of America's airline workers jeapordize the livelihoods of tens of thousands and threaten to accelerate the devastating economic crisis facing our nation," Pelosi said. "Today, I am calling upon the airlines to delay their devastating job cuts as relief for airline workers is being advanced in Congress." Also read: Layoffs loom for beleaguered US airline industry Pelosi had previously resisted a narrow bill focused only on airlines as she pressed for a broad economic package, but that was before major carriers announced more than 30,000 job cuts this week. The first day of October concluded the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers. On Wednesday night, American and United airlines said they would begin furloughing 19,000 and 13,000 workers, while indicating the moves could be walked back if there is a breakthrough in Congress. But an effort by Oregon Democratic Representative Peter DeFazio to advance a proposal to extend the Payroll Support Program was blocked by Republicans who refused to allow the bill to proceed by unanimous consent. An irate DeFazio took to the House floor to blast Republicans for allowing layoffs. "They've lost their jobs, they've lost their health care, some of them are going to lose their homes," DeFazio said. "All because the Republicans in the House of Representatives would not agree." American Airlines reiterated Friday that it would rehire staff if a congressional bills comes through, pointing to a message from Chief Executive Doug Parker that pledged to "reverse our furlough process and recall any impacted team members" if additional aid is approved in the next few days. United said it is "eager to reverse the furlough process once Congress has passed legislation to extend the Cares Act Payroll Support Program." United's share price jumped 2.4 percent to $36.01 and American rose 3.3 percent to $13.00

Pelosi urges US airlines to stop layoffs, backs aid

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs.

The first day of October concludes the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers.&nbsp;

American and United airlines were the first to announce cuts, saying they would begin furloughing 19,000 and 13,000 workers respectively as US officials have failed to reach a deal on fresh aid to the pandemic-hit air travel sector.

A package of loans totaling up to $25 billion to seven US carriers announced Tuesday night by the Treasury Department provides funds for airlines to ride out a prolonged downturn amid the coronavirus, but won't affect plans for furloughs, airline sources said.

Treasury Secretary Steven Mnuchin said Wednesday on CNBC he was hopeful airlines would postpone layoffs if congressional leaders can reach a framework for a deal, saying it was "critical" for Congress to act.

While the stalemate in Washington over stimulus has pinched unemployed workers and put public sector employees on notice, vulnerable airline workers have in some ways been the poster children for the impasse.

"Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck," Sara Nelson, president of the AFA-CWA flight attendant union, said in a statement.&nbsp;

House Speaker Nancy Pelosi and Mnuchin held talks again Tuesday and agreed to keep negotiating. But a deal is still far from assured.

Voluntary exit

Since the coronavirus intensified in March, US airlines have been grounding planes and delaying jet deliveries to limit their cash-burn as air travel remains at about only one-third of its level a year ago.

Carriers have struck agreements with unions to spread out work among employees. Tens of thousands of employees have also accepted unpaid leave or early retirement packages to avert the need for involuntary terminations.&nbsp;

Still, the decisions will not be enough to avert all job cuts. Airlines have said they do not expect a full recovery until a vaccine is widely available, which company executives have said may not be until late 2021.

Unions have said 100,000 people or more could be laid off without additional federal aid, but analysts expect a smaller number than that as airlines and unions seek ways to avoid layoffs.

In one such deal, United Airlines on Monday reached an agreement with its pilots union to avert furloughs of 2,850 employees.

Flight attendants and staff in other airport operations are among the 13,000 being laid off.

Southwest Airlines has said it does not plan involuntary job cuts.

The Delta Air Lines pilot union last week said it reached an agreement with the company to avoid furloughs until at least November 1 to give congressional talks more time.

Delta has said earlier voluntary staff departures and union agreements averted the need for involuntary job cuts for flight attendants and other frontline employees.

Peter McNally, an analyst at research firm Third Bridge, predicted there would be significant downsizing throughout the industry.

"The businesses cannot support the cost structure as it is," McNally said in an interview. "They worked around it through furloughs and early retirement and voluntary departures, but there are still going to be a lot of layoffs.

"The recovery has just not come as quickly as people had hoped," he said.

Public sector faces crunch

Airline workers are hardly the only losers from Washington's inability to enact fiscal stimulus.

Laid-off workers had been receiving $600 in weekly supplemental unemployment benefits under a provision of the CARES Act that expired at the end of July.

President Donald Trump authorized an additional $300 in weekly spending by tapping federal emergency funds, but those funds are also running out and expected to be gone in October, said Nancy Vanden Houten of Oxford Economics.

"Households got quite a boost from these benefits, so we're going to see a pretty big drop-off," she said in an interview.

Another vulnerable group is public sector workers, who face an uncertain future as governments struggle with lower tax revenues and, in many cases, balanced budget rules.

The most recent version of House Democrats' "Heroes Act" includes more than $400 billion in funding for state and local governments, a provision Republicans oppose.

The Economic Policy Institute has estimated that failure to provide support to local government could cost 5.3 million jobs through 2021.

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs.

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs. The first day of October concludes the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers. American and United airlines were the first to announce cuts, saying they would begin furloughing 19,000 and 13,000 workers respectively as US officials have failed to reach a deal on fresh aid to the pandemic-hit air travel sector. A package of loans totaling up to $25 billion to seven US carriers announced Tuesday night by the Treasury Department provides funds for airlines to ride out a prolonged downturn amid the coronavirus, but won't affect plans for furloughs, airline sources said. Treasury Secretary Steven Mnuchin said Wednesday on CNBC he was hopeful airlines would postpone layoffs if congressional leaders can reach a framework for a deal, saying it was "critical" for Congress to act. While the stalemate in Washington over stimulus has pinched unemployed workers and put public sector employees on notice, vulnerable airline workers have in some ways been the poster children for the impasse. "Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck," Sara Nelson, president of the AFA-CWA flight attendant union, said in a statement. House Speaker Nancy Pelosi and Mnuchin held talks again Tuesday and agreed to keep negotiating. But a deal is still far from assured. Voluntary exit Since the coronavirus intensified in March, US airlines have been grounding planes and delaying jet deliveries to limit their cash-burn as air travel remains at about only one-third of its level a year ago. Carriers have struck agreements with unions to spread out work among employees. Tens of thousands of employees have also accepted unpaid leave or early retirement packages to avert the need for involuntary terminations. Still, the decisions will not be enough to avert all job cuts. Airlines have said they do not expect a full recovery until a vaccine is widely available, which company executives have said may not be until late 2021. Unions have said 100,000 people or more could be laid off without additional federal aid, but analysts expect a smaller number than that as airlines and unions seek ways to avoid layoffs. In one such deal, United Airlines on Monday reached an agreement with its pilots union to avert furloughs of 2,850 employees. Flight attendants and staff in other airport operations are among the 13,000 being laid off. Southwest Airlines has said it does not plan involuntary job cuts. The Delta Air Lines pilot union last week said it reached an agreement with the company to avoid furloughs until at least November 1 to give congressional talks more time. Delta has said earlier voluntary staff departures and union agreements averted the need for involuntary job cuts for flight attendants and other frontline employees. Peter McNally, an analyst at research firm Third Bridge, predicted there would be significant downsizing throughout the industry. "The businesses cannot support the cost structure as it is," McNally said in an interview. "They worked around it through furloughs and early retirement and voluntary departures, but there are still going to be a lot of layoffs. "The recovery has just not come as quickly as people had hoped," he said. Public sector faces crunch Airline workers are hardly the only losers from Washington's inability to enact fiscal stimulus. Laid-off workers had been receiving $600 in weekly supplemental unemployment benefits under a provision of the CARES Act that expired at the end of July. President Donald Trump authorized an additional $300 in weekly spending by tapping federal emergency funds, but those funds are also running out and expected to be gone in October, said Nancy Vanden Houten of Oxford Economics. "Households got quite a boost from these benefits, so we're going to see a pretty big drop-off," she said in an interview. Another vulnerable group is public sector workers, who face an uncertain future as governments struggle with lower tax revenues and, in many cases, balanced budget rules. The most recent version of House Democrats' "Heroes Act" includes more than $400 billion in funding for state and local governments, a provision Republicans oppose. The Economic Policy Institute has estimated that failure to provide support to local government could cost 5.3 million jobs through 2021.

Layoffs loom for beleaguered US airline industry

Embattled office-sharing firm&nbsp;<a href="https://www.wionews.com/business-economy/wework-data-shows-growth-still-doubling-261004">WeWork</a>&nbsp;will&nbsp;lay&nbsp;off&nbsp;2,400&nbsp;employees&nbsp;worldwide, about a fifth of its workforce, as it struggles to reorganize amid mounting losses, the company announced Thursday.

The painful job cuts underscore the rapid decline of what had been one of America's most celebrated startups which put a mammoth footprint in the commercial real estate of major cities around the globe but recently had to cancel its debut on Wall Street.

The layoffs which began "weeks ago" were necessary "to create a more efficient organization," a&nbsp;WeWork&nbsp;spokesperson said in a statement.

The dismissed&nbsp;workers&nbsp;"will receive severance, continued benefits, and other forms of assistance to aid in their career transition."

The company told shareholders earlier this month it lost almost $1.3 billion in the third quarter, more than twice the losses recorded in the same period a year earlier.

As investors and analysts questioned the company's value,&nbsp;WeWork&nbsp;in September scrapped plans for an initial public offering, forced out chief executive Adam Neumann and took a bailout from Japan's SoftBank Group, a major investor.

Unconventional executive

Alex Cohen, a vice president at the real estate firm Compass in New York, told AFP that&nbsp;WeWork's payroll became bloated as it tried to keep services, space design, engineering and construction management,&nbsp;in house rather than outsourcing them.

"WeWork's 'growth at all costs' ethos meant they didn't have time or appropriate management to put in place the processes and organizational structures to enable their staff to efficiently service the business's relentless appetite for new locations," he said in an email.

Neumann stepped down from&nbsp;WeWork's board of directors with a $1.7 billion exit package while the company's value was slashed to $8 billion,&nbsp;a far cry from its $47 billion valuation at the start of this year and just a fraction of the sum envisioned as part of the failed IPO.

A source told AFP that Neumann will get $1 billion for his SoftBank shares, $500 million for reimbursements of personal debts and $185 million in consulting fees.

The unconventional entrepreneur had faced simmering questions over his management style, loose approach to corporate governance and allegations of self-dealing,&nbsp;not to mention a Wall Street Journal expose which laid out Neumann's drug and alcohol use and his aspiration to become the world's first trillionaire.

A former employee, Maria Bardhi, filed a labor a grievance in New York accusing Neumann of pregnancy discrimination, saying he referred to her maternity leave as "vacation" and "retirement."&nbsp;

The company also allegedly paid Bardhi's temporary replacement twice her salary and fired her six months after her return.

The&nbsp;<a href="https://www.wionews.com/business-economy/wework-plans-to-lay-off-4000-staff-report-258004">WeWork</a>&nbsp;debacle contributed to woes at SoftBank, which earlier this month announced its largest quarterly loss ever at $6.4 billion.

Masayoshi Son, SoftBank's chief executive, expressed remorse and acknowledged having misjudged both ride-hailing giant Uber and&nbsp;WeWork.

"My investment decisions were in many ways poor. I regret them deeply," he said.

Embattled office-sharing firm WeWork will lay off 2,400 employees worldwide, about a fifth of its workforce, as it struggles to reorganize amid mounting losses, the company announced Thursday.

Embattled office-sharing firm WeWork will lay off 2,400 employees worldwide, about a fifth of its workforce, as it struggles to reorganize amid mounting losses, the company announced Thursday. The painful job cuts underscore the rapid decline of what had been one of America's most celebrated startups which put a mammoth footprint in the commercial real estate of major cities around the globe but recently had to cancel its debut on Wall Street. The layoffs which began "weeks ago" were necessary "to create a more efficient organization," a WeWork spokesperson said in a statement. The dismissed workers "will receive severance, continued benefits, and other forms of assistance to aid in their career transition." The company told shareholders earlier this month it lost almost $1.3 billion in the third quarter, more than twice the losses recorded in the same period a year earlier. As investors and analysts questioned the company's value, WeWork in September scrapped plans for an initial public offering, forced out chief executive Adam Neumann and took a bailout from Japan's SoftBank Group, a major investor. Unconventional executive Alex Cohen, a vice president at the real estate firm Compass in New York, told AFP that WeWork's payroll became bloated as it tried to keep services, space design, engineering and construction management, in house rather than outsourcing them. "WeWork's 'growth at all costs' ethos meant they didn't have time or appropriate management to put in place the processes and organizational structures to enable their staff to efficiently service the business's relentless appetite for new locations," he said in an email. Neumann stepped down from WeWork's board of directors with a $1.7 billion exit package while the company's value was slashed to $8 billion, a far cry from its $47 billion valuation at the start of this year and just a fraction of the sum envisioned as part of the failed IPO. A source told AFP that Neumann will get $1 billion for his SoftBank shares, $500 million for reimbursements of personal debts and $185 million in consulting fees. The unconventional entrepreneur had faced simmering questions over his management style, loose approach to corporate governance and allegations of self-dealing, not to mention a Wall Street Journal expose which laid out Neumann's drug and alcohol use and his aspiration to become the world's first trillionaire. A former employee, Maria Bardhi, filed a labor a grievance in New York accusing Neumann of pregnancy discrimination, saying he referred to her maternity leave as "vacation" and "retirement." The company also allegedly paid Bardhi's temporary replacement twice her salary and fired her six months after her return. The WeWork debacle contributed to woes at SoftBank, which earlier this month announced its largest quarterly loss ever at $6.4 billion. Masayoshi Son, SoftBank's chief executive, expressed remorse and acknowledged having misjudged both ride-hailing giant Uber and WeWork. "My investment decisions were in many ways poor. I regret them deeply," he said.

WeWork to lay off 2,400 workers worldwide

More than half of workers in five Southeast Asian countries are at high risk of losing their jobs to automation in the next two decades, an International Labour Organization study found, with those in the garments industry particularly vulnerable. 
 
About 137 million workers, or 56 per cent of the salaried workforce from Cambodia, Indonesia, the Philippines, Thailand and Vietnam, fall under the high-risk category, the study showed. 
 
&quot;Countries that compete on low-wage labour need to reposition themselves. Price advantage is no longer enough,&quot; said Deborah France-Massin, director for the ILO&#39;s bureau for employers&#39; activities. The report said workers have to be trained to work effectively alongside digitalised machines. 
 
Southeast Asia is home to more than 630 million people and is a hub for several manufacturing sectors, including textiles, vehicles and hard disk drives. 
 
Of the nine million people working in the region&#39;s textiles, clothing and footwear industry, 64 per cent of Indonesian workers are at high risk of losing their jobs to automation, 86 per cent in Vietnam, and 88 per cent in Cambodia. 
 
Garment manufacturers in Cambodia, who take orders from retailers such as Adidas, Marks and Spencer and Wal-Mart Stores Inc, employ about 600,000 people. 
 
Neighbouring Vietnam is seeing record investment in its footwear and textiles industries, due to new free-trade pacts with major markets, including the US-led Trans-Pacific Partnership. It is the second-largest garment supplier behind China to the United States. 
 
The United Nations agency said technologies including 3D printing, wearable technology, nanotechnology and robotic automation could disrupt the sector. 
 
&quot;Robots are becoming better at assembly, cheaper and increasingly able to collaborate with people,&quot; the ILO said. 
 
The textiles, clothing and footwear sector is at the highest risk of automation out of five industries analysed in the study, including automotive and auto parts, electrical and electronics, business process outsourcing and retail. 
 
In the automotive and auto parts industry, more than 60 per cent of salaried workers in Indonesia, and over 70 per cent of those in Thailand face the risk of their jobs being displaced. 
 
Southeast Asia&#39;s automotive sector, the seventh-largest producer of vehicles in 2015 globally, employs more than 800,000 workers, the report said. 
 
Known as the &quot;Detroit of Southeast Asia&quot;, Thailand is a regional production and export hub for the world&#39;s top carmakers. The auto sector accounts for around 10 per cent of Thai GDP and employs a 10th of its workers in manufacturing. 
 
(Reuters)

The textiles, clothing and footwear sector is at the highest risk of automation out of five industries analysed in the study

More than half of workers in five Southeast Asian countries are at high risk of losing their jobs to automation in the next two decades, an International Labour Organization study found, with those in the garments industry particularly vulnerable. About 137 million workers, or 56 per cent of the salaried workforce from Cambodia, Indonesia, the Philippines, Thailand and Vietnam, fall under the high-risk category, the study showed. "Countries that compete on low-wage labour need to reposition themselves. Price advantage is no longer enough," said Deborah France-Massin, director for the ILO's bureau for employers' activities. The report said workers have to be trained to work effectively alongside digitalised machines. Southeast Asia is home to more than 630 million people and is a hub for several manufacturing sectors, including textiles, vehicles and hard disk drives. Of the nine million people working in the region's textiles, clothing and footwear industry, 64 per cent of Indonesian workers are at high risk of losing their jobs to automation, 86 per cent in Vietnam, and 88 per cent in Cambodia. Garment manufacturers in Cambodia, who take orders from retailers such as Adidas, Marks and Spencer and Wal-Mart Stores Inc, employ about 600,000 people. Neighbouring Vietnam is seeing record investment in its footwear and textiles industries, due to new free-trade pacts with major markets, including the US-led Trans-Pacific Partnership. It is the second-largest garment supplier behind China to the United States. The United Nations agency said technologies including 3D printing, wearable technology, nanotechnology and robotic automation could disrupt the sector. "Robots are becoming better at assembly, cheaper and increasingly able to collaborate with people," the ILO said. The textiles, clothing and footwear sector is at the highest risk of automation out of five industries analysed in the study, including automotive and auto parts, electrical and electronics, business process outsourcing and retail. In the automotive and auto parts industry, more than 60 per cent of salaried workers in Indonesia, and over 70 per cent of those in Thailand face the risk of their jobs being displaced. Southeast Asia's automotive sector, the seventh-largest producer of vehicles in 2015 globally, employs more than 800,000 workers, the report said. Known as the "Detroit of Southeast Asia", Thailand is a regional production and export hub for the world's top carmakers. The auto sector accounts for around 10 per cent of Thai GDP and employs a 10th of its workers in manufacturing. (Reuters)

Millions of Southeast Asian jobs may be lost to automation in next two decades

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