Govt: 'Mass Layoffs' Soared In January

WASHINGTON — Employers took a large ax to their payrolls in January, the government said Wednesday, and the cuts are likely to get worse over the next few months.

The Labor Department reported that mass layoffs, or job cuts of 50 or more by a single employer, increased to 2,227 in January, up almost 50 percent from the same month last year. More than 235,000 workers were fired in last month's cuts.

January was a bad month for the labor market. Companies from a wide range of sectors announced tens of thousands of layoffs, including Home Depot Inc., Boeing Co., Pfizer Inc. and Caterpillar Inc.

Not all of those cuts were reflected in the government's mass layoffs report, which counts actual firings as reported by laid-off workers seeking unemployment benefits. Many of the layoffs announced in January will take place over time, meaning that the department's mass layoff figures will likely keep increasing.

The pain continued Wednesday. The NFL said commissioner Roger Goodell has taken a 20 percent pay cut and the league dropped 169 jobs through buyouts, layoffs and other reductions. Spartanburg, S.C.-based textile maker Milliken & Co. said it would cut 650 jobs at facilities worldwide and jeweler Zale Corp. said it will close 115 stores and eliminate 245 positions.

On Monday, troubled flash memory maker Spansion Inc. said it will lay off about 3,000 employees and computer chip maker Micron Technology Inc. announced it will slash as many as 2,000 workers by the end of August.

In a bit of positive news for the job market, consulting firm Watson Wyatt said Wednesday that the number of large employers planning layoffs has dropped since December, according to a survey it conducted of 245 companies last week.

The survey found that the proportion of corporations expecting to cut jobs has dropped to 13 percent from 23 percent. But more companies are considering other cost savings, such as increasing health care premiums, eliminating employee benefits like tuition reimbursement, and reducing matching payments for 401(k)-style retirement plans.

The number of layoffs last month actually declined slightly from December on a seasonally adjusted basis, the Labor Department said. But the figures were uglier without the seasonal adjustment: mass layoffs jumped to 3,806, from 3,377 in December and 1,647 in January 2008.

The government seasonally adjusts many economic indicators to smooth out fluctuations resulting from weather changes, holidays and other predictable factors.

Eleven industries _ including mining, manufacturing, transportation and financial services _ in January reported the highest levels of job losses on government records dating back to 1996.

The department said earlier this month that employers cut nearly 600,000 jobs in January, the biggest loss since 1974. That sent the unemployment rate to 7.6 percent, the highest in 16 years. Since the recession began in December 2007, companies have cut a net total of nearly 3.6 million jobs.

Mass layoffs rose sharply last year to more than 21,000, from about 15,000 in 2007, the department said in January. More than 2.1 million workers lost their jobs last year due to those reductions.

Comments

[bynddrvn5]

Why are these guys not in jail or at least someone in our government pretending to look into why they sold worthless crap to the general public? The mortgage lenders who sold loans to people who had no hope of repaying the loan also need to go to jail.

When interest only bonds were first sold to the general public (although on a much smaller scale from the current financial disaster) there were many lawsuits where the bondholders claimed that the big I banks misrepresented the risk of the bonds.

Now we have a similar issue, how many times do we have to get screwed over before the regulators step in? Seriously, if this was a boxing fight between the I Banks and their customers, the ref would have stopped the fight!

[eddoreandarisia]

While these corporate clo wns play mickey mouse games, we have to support each other. Find ways to direct capital to your local small businesses, that will in turn support you. Force commerce to become more localized in general, so you see where your money goes. Let's face it, the economic system has been dysfunctional for many years now, but just like the alcoholic, there's denial, minimization, avoidance until the consequences become too extreme. And then it's time for treatment!

[Carolab]

ENJOY THE RIDE -- FLY WALL STREET EXECUTIVE AIR

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2009/02/04/fiorewallst.DTL%0A%20%0A%20%0A%0A

[wrrock]

A new low for greedy CEOs: Fire people for a fake reason to bolster evidence that your company needs a bailout. While this was done after Bush's TARP, the effects are being felt now (layoffs).

http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

[karen1p]

Well, I just became part of the statistics today. Yessiree, and here comes two foreclosures if I cannot find work.....a­nd so it goes....

[eddoreandarisia]

Best of luck to you in your employment search. Don't lose faith or hope!

[karen1p]

Know of an opening??? And thanks!

[RJII]

wish ya well, i'm in the similar boat

[mitsie]

How many CEO's have taken pay cuts for themselves and top management?

[ibsteve2u]

Those CEOs who take 10, 20, 30, even 50% pay cuts and expect to be praised because of it? That is total hogwash.

I am supposed to empathize with people who are "only" making $7 million a year, because LAST year when they were happily offshoring jobs and so destroying their own consumer base in America, they made $10 million?

To borrow a phrase from a southern lady acquaintance, they can kiss my grits.

[Kassandra]

that picture, except for the clothes, sure looks like ones from the Depression to moi

[dadw5boys]

Watch many companys file for bankruptize just to dump retirement plans and insurance plans for retirees .

[Kassandra]

they already have or just included their employees pension funds in the companies bottom line when they sold them. ( out)

[ibsteve2u]

Delphi was just awarded the health care plans of 15,000 employees yesterday.

That is all that a corporation has to do - file for reorganization. The C-level execs will go on making millions and enjoying a plush health care plan (and the company jet, of course), but the workers? I can hear the "human resources" managers across America now:

"Its just business. Oh, and by the way: No increase in tardiness or absenteeism as a result of the cancelation of your health insurance will be tolerated. There are a lot of people who would like to have your job."

Republican nirvana.

[Overtone]

Up to 6 million jobs and 4 million small businesses can be created by A Human Investment Tax Credit Program. This was missing from the stimulus package.

One component, a jobs tax credit, became law for one year and generated more jobs in less time than any legislation in our history.

Two versions of the 2009 Report can be downloaded free at: aesopinstitute.org

The full Report contains a post Keynesian economic analysis.

The short version includes only what can be done and how Congress can do it.

[joebaggadonuts]

The jobs tax credit should be limited to hiring in the US somehow to make this work. If you hire overseas workers for outsource-like jobs, that does not help the US economy. Companies figured out that if they can hire someone working for a few cents an hour, a 3K tax credit pays for those workers completely. The same 3K tax credit for a US worker pays for a lot less work time. Plus, tax credits when you are losing money don't really hit the bottom line.

[JoeBlough]

Just hang on people. The Hip-Hop Republican Party has a parcel of Business Tax Cuts coming out soon that will fix everything. Milk and honey will flow once again.
It will be "off the hook".

[RButler]

If 5% unemployment is considered 'full employment', how does 6 or 7 percent become a big problem? It seems like it would be within the margin of error. Makes me wonder if the whole way we measure this is suspect.

[planetjeffy]

5% used to be considered full employment, but that was before Clinton proved it could be in the 3-4% range. The current national unemployment rate is 7.6%. It is quickly heading to mid double digits. In California, where I live, it is at 9.3%. Run a want ad on Craigslist and see how many hundreds of responses you get - and you won't underestimate how bad things really are.

[karen1p]

It is suspect. It does not account for the people that accept part-time work because they cannot find full-time work. It also does not account for the people whose unemployment benefits have ended because they ran out.

[ChaoticGood]

7.6 percent doesn't sound like a big number, unless you consider the fact that people who worked at least 1 hour last week for pay do not show up in the number. All the people whose unemployment insurance has run out are not counted either. When you count up all those people not working full time who want to, who have run out of unemployment insurance and those who have given up trying, the rate is close to 20%. Its been that way for quite a while.
The 7.6 percent is one of the most misleading statistics ever used.

[Choicelady]

Indeed - it's pretty safe to double the number for those who have "given up" (meaning they are not collecting unemployment insurance) looking for work and add in those working part time. I'd like to encourage Obama to change the reporting mechanism. Official unemployment was higher under Reagan (over 10%) but there was not the added whammy of a massive capital drain and total meltdown of credit markets. I doubt it is more or less horrid - unemployed is unemployed - than in the 1980s, but it is sure and certain that when the Republicans dominate, we have crises, and they affect the ordinary American. I think most of America finally gets it. Though living in CA, you'd think from the bully drivers of BMWs and Lexus cars that they still owned the world. NOT!

[HonorJusticeTruth]

Besides the way unemployment is calculated, Reagan also redefined the GNP and GDP to make things look brighter than they were.

[runfastandwin]

I am pretty sure the way it is reported was changed in 2003 to shave off a couple percent so it wouldn't look so bad in the last recession.­..

[arteria]

It doesn't count people like me who are self employed and not eligible at all for unemployment benefits, I have some work, but not enough.... by the time this is done I'll be pretty heavy in debt and will take years to pay off.

[BobsNotWorking]

Lets keep our chins up folks. Just think. We might have had McCain/Palin. What do you think the future would be looking like right now had that happened?

[KillTheMessenger]

Let's see... I think they wanted to nuke Iran first and then North Korea. Or was it the other way round?

:-)

[jonolennon]

That is a very sobering thought...­..McCain/P­alin steering the ship! Life as we know it would be over.

[Choicelady]

That ranks right up there with the worst scares of horror flicks. Yikes!

[ravencalling]

Yeah and as the country collapsed so quickly that people were breathing in the dust, Palin would be locked in her room trying on new clothes supplied to her from her party She would move her witch doctor into the WH to exorcise America's demons. "Let them eat cake!" she would say. McCain would be literally shoveling unregulated money to the banks and wealthy people, and eliminating ALL social programs. Private jets would be flying the wealthy out of the country for safety. And regarding nukes? Yeah, we at that point would probably have nothing else to lose and therefore nuking unsuspecting countries would be featured as a new redneck reality show for the nation. 10..9..8..­7..