Another wave of layoffs looms over the American coal sector

The clearest sign of widespread job cuts in American coal is the amount of coal mined per US miner, which is at its lowest level in eight years.

Productivity has only dropped 11% this year. It was last so low in 2011, when companies ended up laying off nearly half of their workers in a recession that had lasted more than four years.

For years, American coal producers have relied on exports and metallurgical coal used to produce steel to offset declining demand from US utilities.

Now even these markets are suffering as the global economy slows down and liquefied natural gas becomes cheap. Bottom line: US production is expected to decline 10% this year and jobs are at risk.

“It is very likely there will be more layoffs,” said Phil Smith, spokesman for the American Mine Workers Union.

The coming recession comes after Trump, who has vowed to save the coal industry by easing environmental regulations, kicks off his campaign trail. Winning a second term will depend in part on the mountainous seating regions he had in 2016, including West Virginia and Pennsylvania.

Cuts are already underway. On Monday, Peabody Energy Corp. said it plans to close a mine in Illinois and lay off about 225 workers. Blackhawk Mining LLC shut down four West Virginia mines last week and laid off about 340 people. And in September Murray Energy Corp. closed mines in West Virginia.