Surge in Big Business Bankruptcies Signals Mounting Economic Troubles

Business bankruptcies have tripled in the first half of 2022 compared to 2021, worrying economists. Large bankruptcies like SVB Financial and Yellow reverberated across sectors.

While job growth remains strong overall, employment at large companies has declined since January, signaling emerging weakness.

Big bankruptcies come as economic risks rise - households are spending down pandemic savings, banks are pulling back lending, and bond yields are surging.

The collapse of Yellow translated to 30,000 lost jobs, the largest single job loss since Boeing's cuts in 2020. More big bankruptcies could mean more layoffs.

Companies that took on cheap debt pre-pandemic are now struggling with spiking interest costs, raising default risks. Petco and Voyager Aviation are examples.