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467,000 Jobs Lost in June
The Labor Department reported Thursday that U.S. employers cut 467,000 jobs in June. The unemployment rate climbed to 9.5 percent, which is nearly a 26-year high. Reuters reports that the jobs cuts were 100,000 more than Wall Street economists had been expecting. The economy has now lost 6.5 million jobs since the recession began on Decemeber 2007.
The AP says jobs cuts were widespread covering most sectors. Only education and health services added jobs.
Professional and business services slashed 118,000 jobs, more than double the 48,000 cut in May. Manufacturers cut 136,000, down from 156,000. Construction companies got rid of 79,000 jobs, up from 48,000 the previous month. Retailers eliminated 21,000, up from 17,600. Financial activities cut 27,000, following 30,000 in May. The government cut 52,000 jobs, up from 10,000 the previous month. Leisure and hospitality cut 18,000 jobs, erasing a gain of the same size in May.
One of the few industries adding jobs: education and health services, which added 34,000 positions last month and 47,000 in May.
The big June figures are a clear sign that the pace of layoffs is not slowing down. U.S. News provides a good Q&A on what this latest jobs report means here.
Posted on July 2, 2009
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ADP: U.S. Companies Cut Payrolls by 473,000 in June
Bloomberg reports that ADP Employer Services estimates that employers cut 473,000 jobs in June. This would be a sign that job losses are not slowing. Economists had been expecting a smaller figure.
The 473,000 drop in the ADP Employer Services gauge followed a revised reduction of 485,000 workers in May that was smaller than previously estimated.
Job losses may mount as the bankruptcies of General Motors Corp. and Chrysler LLC ripple through manufacturing. Increased firings threaten to further restrain consumer spending at a time when the world’s largest economy is showing signs of stabilizing.
"This is a weak number," Joel Prakken, chairman of Macroeconomic Advisers LLC, said on a conference call with reporters. "It's a pretty clear indication that, while we’re not shedding jobs as rapidly as the first part of the year, the labor market is still in a state of decline."
Bloomberg says tomorrow's jobs report from the Labor Department may show employers cut 363,000 jobs in June and that unemployment climbed to 9.6%. This would indicate deep losses and that employers are still firing and not hiring.
Posted on July 1, 2009
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240,000 Jobs Lost in October; Jobless Rate Hits 6.5%
The latest jobs report from the U.S. Department of Labor has the jobless rate at 6.5%. 240,000 jobs were lost in October and the September job cuts were revised to 284,000 jobs. A total of 1.2 million jobs have been lost this year reports the Associated Press.
The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September, matching the rate in March 1994.
Unemployment has now surpassed the high seen after the last recession in 2001. The jobless rate peaked at 6.3 percent in June 2003.
October's decline marked the 10th straight month of payroll reductions, and government revisions showed that job losses in August and September turned out to be much deeper. Employers cut 127,000 positions in August, compared with 73,000 previously reported. A whopping 284,000 jobs were axed in September, compared with the 159,000 jobs first reported.
So far this year, a staggering 1.2 million jobs have disappeared. Over half of the decrease occurred in the past three months alone.
It may be a while before we see a month with an increase in jobs as big companies like Merck, Yahoo, PepsiCo, Mattel, GM and Whirlpool have all already announced plans to layoff workers in 2009. The complete jobs report can be found here.
Posted on November 7, 2008
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July Planned Layoffs Up 26% Over June
A Reuters story says a new report from consultancy Challenger, Gray & Christmas indicates planned layoffs by employers have climbed 26% over June's figures. Planned layoffs at U.S. companies for July exceed 100,000 jobs.
Planned layoffs at U.S. companies jumped 26 percent in July from June, depicting further deterioration in the labor market, a report showed on Monday.
Planned layoffs at U.S. companies totaled 103,312 in July, compared with June's 81,755, employment consulting firm Challenger, Gray & Christmas Inc said.
Announced job cuts at U.S. companies last month were the second highest total so far in 2008, more than double the 42,897 a year earlier, the report said.
eWeek takes a close look that the report to see what it means for IT workers. A couple other articles on the planned layoffs report can be found on TheStreet.com and Forbes.
The economy shed over 50,000 jobs in June so increasing signs of more layoffs to come is not a good thing.
Posted on August 6, 2008
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GM to Reduce Labor Costs by 20%
General Motors (G.M.) has announced plans to cut its labor costs by 20%. The methods it will use include layoffs, pay freezes and early retirement packages.
The moves, which include selling at least $2 billion in assets and borrowing as much as $3 billion, are expected to raise about $15 billion by the end of 2009, the chief executive Rick Wagoner said.
Mr. Wagoner said the automaker would stop providing health care coverage to salaried retirees at age 65, offer buyout and early retirement packages to reduce its salaried work force and freeze base pay for salaried employees through 2009.
In addition, G.M. executives will no longer receive discretionary cash bonuses.
"These are tough but necessary actions," Mr. Wagoner said, "and these, along with current cash and available credit lines will provide us with ample liquidity through 2009 even under conservative U.S. industry sales assumptions."
GM has already made considerable job cuts since 2006. This time they are targeting white-collar positions as Freep.com notes. A satirical Onion headline earlier this year read, "GM Introduces New 2008 Line Of Layoffs."
Posted on July 15, 2008
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Banking Industry Could Lose 200,000 Jobs
The Associated Press is reporting that the U.S. financial industry could shed as many as 200,000 jobs over the next 12 to 18 months because of the credit crises.
The U.S. financial industry has been shedding jobs at a record clip, and some analysts predict the pace will only accelerate over the next year-and-a-half as banks cut costs in the face of the housing market slump and the weak economy.
Analysts at the financial research firm Celent LLC said in a report Tuesday that it expects the U.S. commercial banking industry - essentially, all companies that lend or collect deposits - to lose 200,000 of its 2 million jobs over the next 12 to 18 months.
An annual loss of 200,000 jobs at the nation's commercial banks would be an unprecedented number.
These kind of losses would also expand the economic weakness we have already been seeing. These would be in addition to the 153,000 financial services jobs lost in 2007. Most of these losses came in the mortgage-lending business according to the AP story.
Posted on April 2, 2008
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Biggest Jump in Jobless Claims Since Katrina
Marketwatch is reporting that jobless claims (first-time jobless claims) have soared 69,000 in the past week - the biggest jump since Hurricane Katrina in September, 2005.
Initial claims for state unemployment benefits rose 69,000 in the week ended Jan. 26, reaching 375,000, the Labor Department reported Thursday. It marked the highest level since early October -- and the biggest weekly jump since September 2005 in the wake of Hurricane Katrina.
Before this sharp rise, jobless claims had fallen by a net of 51,000 since late December, confounding economists who had expected claims to gradually rise as the nation's economy slowed.
Analysts had been expecting an increase, but nothing nearly as large as last week's gain: The consensus forecast as compiled by MarketWatch had called for claims to rise to about 320,000.
You can follow the data from the government on this page on the U.S. Department of Labor's website.
Posted on January 31, 2008
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British Columbia Could Lose 1,000 Jobs From Writers' Strike
The fallout from the writers' strike is starting to be felt as production comes to a halt on tv sets. A article says that 1,000 jobs in British Columbia's television industry could be lost because of the strike.
Vancouver-based studios aren't commenting on the strike, which began last week, but veteran publicist Bill Vigars is calling the situation a crisis for B.C. productions.
He says one show, Bionic Woman, starring Michelle Ryan, shut down last Friday, more than a month early.
A source close to the Vancouver production of Battlestar Galactica says that show stops filming tomorrow, although it was supposed to continue shooting until next March.
Vigars estimates another four shows are expected to follow suit, costing at least 150 direct jobs per show, as well as jobs in related industries such as catering or trucking.
B.C. film commissioner Susan Croome says different shows have different numbers of scripts ready to shoot but insists no series in the province has reached a point of desperation, yet.
The writers strike also impacts jobs in U.S. cities other than Los Angeles and New York City. Layoffs could occur as production of shows ends in these cities. Shows that are being produced in Austin and in Miami are just a couple of examples.
Posted on November 15, 2007
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Jobs News Twitter
We have launched a twitter profile which provides jobs news. Twitter is a microblogging service and communication tool that allows you to post short 140 character updates. To get our updates on Twitter you need to join Twitter and then follow our Twitter profile.
You can keep up with news about Twitter by reading BloggersBlog.com's Twitter news section or by
following the BloggersBlog.com Twitter. Examples of some of the other news Twitters available include
business news, celebrity gossip, sports news, tech
gadgets, jobs, green news, video game news, health news, tech news, fashion news, politics and virtual worlds.
Posted on April 16, 2007
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Weak Housing Market Could Weigh Down Job Growth
Last year the housing market gave a boost to the overall job market. This year that's not the case at all. MSNBC.com reports that the housing market is already weighing down job growth.
Since the middle of last year, a downturn in the U.S. housing market has taken its toll on a wide group of people and companies, clobbering homebuilders, condo flippers, borrowers with weak credit, lenders who oversold loans, and just about anyone with a home for sale.
Now the housing slump is hitting yet another target: housing-related jobs, a list that includes everyone from the people who build and sell houses to makers of appliances and furnishings.
That's a sharp contrast to the height of the housing boom in 2005-06, when the industry was responsible for creating some 25,000 to 50,000 new jobs every month, according to Mark Zandi, chief economist at Moodys.com.
And it could get much worse. Moodys.com's chief economist Mark Zandi also gave MSNBC.com this grim forecast.
"In the recent months it's been laying off workers at a pace of 25,000 to 50,000 per month," he said. "And I think the next couple of quarters we'll start seeing job losses of between 50,000 and 75,000 per month. ... I think the housing market is going down a whole other notch."
The MSNBC article also notes that it was a real estate downturn that brought on the recession of 1990-91. Hopefully it won't get that bad in 2007/2008.
Posted on March 12, 2007
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Motorola Cuts 3,500 Jobs
USA Today reports that Motorola is laying of 3,500 jobs or 5% of its workforce.
Motorola (MOT) CEO Ed Zander said Friday the cell-phone maker will cut 3,500 jobs, or 5% of its workforce, as it moves to improve operating costs after a disappointing fourth quarter.
Zander, speaking to analysts at a meeting in New York, said the move will save the company about $400 million over two years. The cuts from Motorola's workforce of about 70,000 are to be spread across the company globally and completed in the first half of 2007.
Motorla's profits dropped 48% in the fourth quarter of 2006 which explains why the company is looking to cut costs.
Posted on January 19, 2007
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Warm Winter Results in Layoffs For Ontario Ski Resort
The Toronto Star is reporting that this year's warm winter has resulted in 1,300 layoffs at Ontario's largest ski resort -- the Blue Mountain Resort.
Ontario's largest ski resort has laid off 1,300 workers after closing down its ski operations in the middle of the winter season for the first time in the resort's 65-year history.
"We're trying to make the best of things so that guests who still come to Blue will have a good time, but it's pretty tense," said Kelly O'Neil, a spokeswoman at Blue Mountain Resort, yesterday. Officials said they had no choice after a run of unseasonably warm weather that has some wondering if winter will appear this year at all.
In Toronto, yesterday's high hit a record 11C, smashing the previous Jan. 5 high of 10.1C set in 1997.
Mind you, that's still got some way to go before breaking the record for January's hottest day – 17.6C – set Jan. 13, 2005.
Yesterday's record, which was set around 7 a.m., came on the heels of the warmest January evening in 167 years.
The unusually warm weather has some blaming the warm weather entirely on global warming but weather experts argue that that el nino is also responsible.
Posted on January 11, 2007
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Pfizer Cuts 20% of Sales Force
Pfizer Inc. is laying off 2,200 sales employees according to an Associated Press news story.
Pfizer Inc. said Tuesday it will cut its U.S. sales force by 20 percent, or 2,200 people, as part of a cost-cutting program to transform the company into a more nimble organization as it struggles with sluggish sales.
The drug company has 11,000 sales representatives, and the cuts will be made by the end of the year, according to company spokesman Paul Fitzhenry. He couldn't say how much the cuts would save the company or if it would take any kind of an earnings charge because of the move.
In October, Pfizer said it would slash costs beyond the program announced last year, designed to cut $4 billion in expenses by 2008.
The article says Pfizer's sales have been sluggish and they have lost some patents on drugs recently. Pfizer employed at total of 11,000 sales reps before the layoffs.
Posted on December 1, 2006
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Some Republicans May Lose Jobs
The Raw Story cites an article from Roll Call that says some Republicans may lose jobs because of the results of the Midterm elections.
"The hundreds of Republican staffers - not to mention more than a few Members -who will lose their jobs in the next few weeks are going to face a hostile marketplace on K Street as unemployed Republicans flood the market," Kate Ackley writes for Roll Call.
"While GOP aides are flooding the town with their resumes, it's now plugged-in Democratic aides whom companies and firms really have an eye for," the article continues.
The head of a lobbying firm that currently employs only Republicans tells the Capitol Hill newspaper, "It's going to be more of a buyer's market for Republican staffers and a seller's market for the Democratic staffers."
That can happen when you are on the losing team. The Republicans did lose some seats but it probably isn't quite as bad as it sounds from a job perspective. The article can be found here.
Posted on November 9, 2006
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RadioShack Employees Fired By Email
ABC News reports that RadioShack has fired 400 employees by email. The email message was how the workers were informed they had been fired.
Employees at the Fort Worth headquarters received an e-mail Tuesday morning telling them they were being dismissed immediately.
"The work force reduction notification is currently in progress," the notice stated. "Unfortunately your position is one that has been eliminated."
Company officials had told employees in a series of meetings that layoff notices would be delivered electronically, spokeswoman Kay Jackson said. She said employees were invited to ask questions before Tuesday's notification on a company intranet site.
Management experts expressed surprise at RadioShack's use of electronic notification instead of face-to-face meetings with supervisors.
Derrick D'Souza, a management professor at the University of North Texas, said he had never heard of such a large number of terminated employees being notified electronically. He said it could be seen as dehumanizing to employees.
RadioShack really should have found a better way to do this. You can read more blogs discussing this in a roundup on BloggersBlog.com.
Posted on September 9, 2006
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Katrina Puts Lives and Jobs on Hold
Hurricane Katrina has devastated areas of Mississippi and Alabama
and flooded the city of New Orleans. The devastating blow
will impact the jobs of millions of workers. Some people will never
get their old jobs back. The gambling industry brings $500 million
daily in tax revenues to the state of Mississippi so these casinos
will eventually reopen and people will be needed again -- but many
casinos need major repairs or to be completely rebuilt.
Another problem local industries have is that many of their
employees no longer have housing.
The Star Tribune reports that unemployment in the region could soar to 20% to 25%.
The seasonally adjusted unemployment rate in the area of New Orleans, Metairie and Kenner was 4.9 percent in July, Hopkins said based on his calculations. The jobless rate there could easily climb to 25 percent, he estimated.
In another storm-slammed area of Gulfport and Biloxi, Mississippi, the seasonally adjusted unemployment rate in July was 5.7 percent, Hopkins said. That jobless rate could rise to around 20 percent or higher, he added.
"It's a pretty sizable impact. Commerce has come to a standstill in those counties that were hit," Hopkins said.
It will be some time before the full impact on jobs will be determined. More Hurricane Katrina resources can be found here on our BloggersBlog.com website.
Posted on September 2, 2005
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