PPG Industries, a prominent paint company based in Pittsburgh, recently announced its decision to lay off approximately 1,800 workers and sell its architectural coatings business. 

The company’s chairman and CEO, Tim Knavish, explained that the layoffs were a necessary step to reduce costs and “right-size” the business. This decision comes as the U.S. labor market continues to show signs of weakness, with troubling unemployment trends adding pressure to industries across the nation.

The layoffs will primarily affect PPG’s U.S. and European operations, though details on the specific locations impacted have yet to be released. PPG employs more than 6,000 people, with around 800 working at its Pittsburgh headquarters and 425 at a nearby facility in Cranberry, Pennsylvania. 

The company’s move to cut jobs comes amid broader concerns about the U.S. labor market, which has been facing a decline in full-time employment and an increase in part-time work. According to a recent report from The Heritage Foundation, the U.S. economy shed 1.6 million full-time jobs over the past year, replacing them with 1.8 million part-time positions. The resulting shift has contributed to a rise in unemployment, with the rate increasing from 3.7% to 4.1% since last November.

Adding to the complexity, much of the job growth recorded in the U.S. has been in the public sector or indirectly funded by taxpayer dollars, rather than in private industry. Roughly 60% of the jobs added in recent months are tied to government spending, according to Heritage Foundation data. This has raised concerns about the sustainability of the current labor market, as government-supported positions are an unsustainable economic model.

Moreover, the trend where all net job growth over the last year has gone to foreign-born workers, with native-born Americans losing jobs, adds another layer of complexity to the unemployment issue. This statistic, coupled with the fact that fewer people are employed now than pre-pandemic, with earnings failing to keep pace with inflation, paints a dire picture of the current U.S. labor market.

The larger picture, however, points to deeper issues within the U.S. job market. While payroll numbers may appear steady on the surface, employment has actually fallen by 667,000 since late 2023. For many workers, including those at PPG, the economic uncertainty signals more tough times ahead. With layoffs, part-time job replacements, and rising unemployment, the U.S. labor market faces challenges that may not be resolved without substantial economic shifts.