Archive for the ‘job loss’ Category

China moves to stem mass layoffs

November 18, 2008

When China’s President Hu Jintao made his first official visit to Washington in April of 2006, President Bush asked his counterpart which of the numerous challenges China faced was the most serious — which one kept Hu awake at night worrying. “Unemployment,” Hu reportedly answered without hesitating.
China's President Hu Jintao speaks at a celebration meeting ... 
China’s President Hu Jintao speaks at a celebration meeting at the Great Hall of the People in Beijing.  REUTERS/Jason Lee (CHINA)
From the BBC

Companies in two Chinese provinces, Shandong and Hubei, have been told they must seek official consent if they want to lay off more than 40 people.

The order highlights the Chinese authorities’ concern over mounting job losses.

As China’s main external markets plunge into recession and export orders shrink, layoffs have multiplied in the country’s big manufacturing regions.

In Shandong alone, nearly 700,000 people have lost their jobs this year.

In southern Guangdong, tens of thousands of firms have closed, sparking off reverse migration to the countryside by redundant workers.

China’s economic growth has slowed sharply this year to around 8 percent – high by world standards, but much less than the double-digit figures seen for years.

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Chinese police officers stand guard as hundreds of workers gather outside a government building after a large toy factory closed in Guangdong province, southern China, on 17 October 2008
China fears fast-rising unemployment could trigger social unrest




US private sector sheds 157,000 jobs in October; Rebound Hope “Very Slim”

November 5, 2008

The US private sector shed 157,000 jobs in October, accelerating a decline of 26,000 jobs in September, according to a monthly survey by a private payroll data firm released Wednesday.


The October figure was much larger than analysts’ consensus forecast of a drop of 100,000 for the ADP National Employment Report.

Automatic Data Processing noted that its survey had not taken into account a strike by 27,000 machinists at aerospace giant Boeing that began September 6 and ended Sunday.

ADP also sharply revised the September nonfarm jobs loss to 26,000 from a prior estimate of 8,000.

The October report “offers evidence of a labor market that continues to weaken,” ADP said.

The goods-producing sector drove the payrolls loss, shedding 126,000 jobs in its 23rd consecutive monthly decline, while the manufacturing sector marked its 26th straight monthly decline, losing 85,000 jobs.

The huge services sector lost 31,000 jobs, the first decline in the ADP report since November 2002, when the economy was emerging from recession.

Small businesses employing fewer than 50 workers were hard hit, losing 25,000 jobs in the first decline since November 2002, the ADP said.

Grim Report on Jobs, Service Sector

NEW YORK (Reuters) – The private sector jobs market deteriorated rapidly in October while the service sector contracted sharply as the worst financial crisis in 80 years hammered the world’s largest economy.

Privately released reports on Wednesday highlighted the economic challenges facing Barack Obama a day after he won the race for the White House and foreshadowed weakness in the government’s U.S. labor market report due out on Friday.

U.S. private employers made their deepest job cuts in six years last month and companies’ planned layoffs surged to their highest in nearly five years. A key gauge of the service sector fell to the lowest since the index was launched in 1997.

“In short, horrible, but only to be expected in the wake of the equity plunge and the subsequent collapse in confidence,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.

On Wall Street, stocks pared losses as the data did not show a collapse in the services data that some had feared, but the dollar trimmed its gains against the euro. Prices of U.S. government bonds, which usually benefit from signs of economic weakness, pared gains.

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Creating New Jobs Will Be Very Tough

NEW YORK ( — Here’s the challenge facing President-elect Barack Obama as he weighs how to create more jobs: another half-million jobs likely will be lost between now and Inauguration Day.

That’s not even counting the 200,000 jobs that economists believe employers trimmed last month, according to estimates from The October jobs report will be released this Friday.

The unemployment rate is expected to climb to 6.3% from 6.1% and match the worst reading of the decade. And economists all seem to agree the worst is yet to come.

At some point next year the unemployment rate is forecast to pass 7%, a level not seen since 1993.

And monthly job losses of 200,000 or more are expected to become the norm, not the exception, as the full impact of the credit crisis is felt more keenly on Main Street.

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Employers slash jobs by most in 5 years

March 7, 2008
By JEANNINE AVERSA, AP Economics Writer

WASHINGTON – Employers slashed jobs by 63,000 in February, the most in five years, the starkest sign yet the country is heading dangerously toward recession or is in one already.
The Labor Department’s report, released Friday, also showed that the nation’s unemployment rate dipped to 4.8 percent as hundreds of thousands of people — perhaps discouraged by their prospects — left the civilian labor force. The jobless rate was 4.9 percent in January.

Job losses were widespread, with hefty cuts coming from construction, manufacturing, retailing, financial services and a variety of professional and business services….

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Macy’s Will Cut About 2,300 Employees

February 7, 2008

CINCINNATI (AP — Feb. 6) – Department store operator Macy’s Inc. said Wednesday it will cut about 2,300 management jobs as it consolidates three regional divisions and decentralizes buying in a bid to reduce costs and boost sales.

The Cincinnati-based retailer said it will immediately begin consolidating its Minneapolis-based Macy’s North headquarters into its New York-based Macy’s East, its St. Louis-based Macy’s Midwest organization into its Atlanta-based Macy’s South and its Seattle-based Macy’s Northwest headquarters into its San Francisco-based Macy’s West.

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Bush sees serious signs U.S. economy is weakening

February 1, 2008

By Tabassum Zakaria
Friday, February 1, 2008

KANSAS CITY, Missouri (Reuters) – President George W. Bush on Friday said there were troubling signs of economic weakening and urged Congress to move on a stimulus package to help prop up the economy, which has been hit by a housing slump and credit crisis.

U.S. President George W. Bush talks about the economy after ...
U.S. President George W. Bush talks about the economy after touring Hallmark Card headquarters and visitors’ center in Kansas City February 1, 2008.

Bush’s comments mirrored his efforts in his State of the Union address on Monday to calm Americans’ recession fears and came on the heels of a government report earlier on Friday showing U.S. employers cut payrolls for the first time in 4-1/2 years in January.

“There are certainly some troubling signs, serious signs that the economy is weakening and we’ve got to do something about it,” Bush told employees at Hallmark Cards Inc. in Kansas City, Missouri.

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