Tens of thousands of job cuts announced by blue-chip companies in the last 24 hours are a warning sign for the world’s recovery and emerge just ahead of two key reports forecast to show limited progress in the U.S. labor market.

In one of the biggest layoff announcements since the pandemic caused widespread economic shutdowns, Walt Disney Co. (DIS) said Tuesday it’s slashing 28,000 workers in its slumping U.S. resort business.

The fallout isn’t contained to America. Royal Dutch Shell Plc (RDS.A) will cut as many as 9,000 jobs as crude’s crash forces billions of dollars in cost savings, while German auto-parts supplier Continental AG’s supervisory board approved a restructuring plan that will cut or shift 30,000 jobs worldwide.

Jobs Data

Announcements like these point to further challenges in a rebound that’s already slowed after an initial bounce back in May and June. Weekly figures due Thursday are estimated to show filings for U.S. unemployment benefits remain far above pre-virus levels, while Friday’s jobs report -- the last before the November presidential election -- is expected to reveal that employers added a half-million fewer workers in September than in August.

With the pandemic still raging and U.S. lawmakers having failed so far to reach an agreement on extending federal relief for the unemployed and small businesses, many key measures in the world’s largest economy look set to remain weak for some time. While the first wave of job cuts hit service workers the hardest -- in industries such as restaurants and entertainment -- economists see other higher-paid positions at increasing risk of layoffs as the recovery grinds slowly forward.

Particularly hard-hit are also companies reliant on travel and tourism, including Disney. American Airlines Group Inc. has warned that it could furlough 19,000 employees, while United Airlines Holdings Inc. is planning to cut about 12,000.

There are signs, however, that the labor market is gradually improving in certain areas as demand rises from the depths of the pandemic. U.S. companies added 749,000 jobs in September, according to ADP Research Institute data released Wednesday. ADP’s numbers, though, have diverged widely from official government figures in recent months.