The latest sign the economic downturn is intensifying: White-collar workers are being laid off now

When he started coughing last week, Andrew Kerr figured it was just a reaction to his marathon training. To be safe, the paralegal told his boss at a small east Tennessee law firm. But that got him barred from the office for 14 days, without pay.

The lost income stung. Kerr’s fiancee, a nurse’s assistant, makes far less, and money already was tight. So they lived off credit cards while the former Marine counted the days until he could return to work. But when he called Wednesday to check on his schedule, he was laid off.