Factory job cuts in June neared financial crisis and Covid levels, S&P says

A pedestrian walks by a now hiring sign posted at a gas station on June 5, 2026 in Los Angeles, California. Justin Sullivan | Getty Images Job cuts at U.S. factories ran near their highest levels since the end of the global financial crisis in 2009 and the Covid-19 pandemic as worries grew over global demand and rising costs, S&P Global reported Tuesday. Though the firm's manufacturing index ran better than expected for June, it came largely from an inventory rebuild and despite sharp job cuts that were the most since 2009 — excluding the massive labor reductions at the onset of the Covid crisis in 2020. "While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears. Supply delays grew more widespread in June," said Chris Williamson, chief business economist at S&P Global Market Intelligence. Manufacturers have indicated job cuts for three of the past four months as they seek to reduce headcount over costs and demand concerns. "Most worrying was the further fall in employment, notably in the manufacturing sector," Williamson said. …