Employment Stats 11/29/08
Weekly Jobless Claims (Seasonally Adjusted), Week Ending 11/29 (reported 12/04) 524,500 |
Employers cut 533K jobs in November, most in 34 years
Skittish employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, dramatic proof the country is careening deeper into recession. The new figures, released by the Labor Department Friday, showed the crucial employment market deteriorating at an alarmingly rapid clip, and handed Americans some more grim news right before the holidays. The net loss of more than a half-million jobs was far worse than analysts expected. The unemployment rate would have moved even higher if not for the exodus of 422,000 people from the workforce. Economists said many of those people probably abandoned their job searches out of sheer frustration. Read more.
White House, legislators say auto bailout deal looks close
Congressional leaders moved closer to an agreement on an interim aid package of at least $15 billion in loans for General Motors and Chrysler that could be considered by legislators as early as Tuesday. Several key issues remain unresolved, however. The amount is far less than the $34 billion in loans and lines of credit sought by Detroit automakers, but could be a temporary solution to hold over GM and Chrysler until the new administration takes office. Ford, in the best financial shape and asking only for a line of credit, has said it does not need immediate loans. Read more.
Auto workers give up notorious featherbed
On the eve of Detroit's latest date with fate in Washington, the United Auto Workers have surrendered the union's version of corporate jets. The union is suspending its most ridiculed perk, called the JOBS bank. That program, set up as part of a contract agreement reached between Detroit's Big Three and the union decades ago, pays auto workers 85 percent of their pay while furloughed. Some workers reported for years to meeting rooms where they would sit and wait for an assignment or be sent to clean public parks. All the while, they would get paid most of their wages. Read more.
Company will meet laid-off workers over sit-in
Representatives of the company whose laid-off employees are staging a sit-in at the shuttered factory where they worked will meet Monday with union and bank officials, a congressman said. Some 200 workers who abruptly lost their jobs last week have said they won't leave the Republic Windows and Doors plant until they get assurances they will receive their severance and vacation pay. Their demonstration has drawn support from President-elect Barack Obama and others. Read more.
Good time to get a deal on a franchise
In the past few recessions, franchises fared well - even thrived - as ex-corporate workers sought more autonomy and personal reward than their previous jobs offered. But this downturn feels markedly different, and prospective franchisees like you are understandably cautious about rushing into a long-term investment. Many franchisors have noted this difference. Some are responding with press releases that sound almost zealously optimistic, if tinged with fear - proclaiming that their systems are "booming in the slow economy," their industry is "recession resistant" and/or their franchisees are continuing to "do well in these uncertain times." Read more.
Insurers like Obama health plan (mostly)
The insurance industry embraced many of President-elect Barack Obama's ideas for better health care coverage, though it opposes a key piece of his plan to require employers to help pay for that coverage. The industry said it opposes Obama's plan to require medium-sized and large employers to contribute to their workers' health coverage or pay a percentage of their payroll for operation of a national, public insurance plan. Read more.
Work really may be bad for health
Sick of your job? You're not alone, according to an international survey that found nearly a fifth of employees say their work makes them ill or unhealthy. The online survey, by global recruitment firm Kelly Services, polled about 115,000 people in 33 countries in Europe, Asia and the Pacific and North America this year. On average, 19 percent of respondents globally said their job was adversely affecting their health, with an additional 13 percent saying their work was so stressful it was making it hard for them to sleep at night. Read more.
Company News: AT&T to Cut 12,000 Jobs |
AT&T to cut 12,000 jobs, or about 4 percent of workforce
AT&T will cut about 12,000 jobs, or 4 percent of its workforce through the end of next year, as the global economic downturn quickens telecommmunication companies' moves to cut costs at their declining landline businesses. AT&T said economic pressures, a changing business mix and more streamlined structure led to the decision. The company expects to take a fourth-quarter severance-related charge of about $600 million. Read more.
Credit Suisse cuts 5,300 jobs
Credit Suisse announced it would cut 5,300 jobs - 11 percent of its global workforce - and Nomura of Japan said that it planned 1,000 job cuts at its London office as the financial crisis and economic downturn intensifies. The cuts add to the tens of thousands of job losses in the global financial sector in recent months as the crisis that began with U.S. subprime mortgage meltdown last year worsened. Read more (Free registration required).
Dow Chemical to slash 5,000 jobs, close 20 plants
Dow Chemical said Monday it will slash 5,000 full-time jobs - about 11 percent of its total workforce - close 20 plants and sell several businesses to rein in costs amid the economic recession. The company, one of the largest chemical makers in the world, expects the moves to save about $700 million per year by 2010. Dow also will temporarily idle 180 plants and prune 6,000 contractors from its payroll. Read more.
GM to lay off 2,000 more workers at three factories
The worsening U.S. auto sales slump claimed another 2,000 workers Friday as General Motors Corp. announced layoffs at three more car factories. The company said it will cut shifts at car factories in Lordstown, Ohio; Orion Township, Mich.; and Oshawa, Ontario, starting in February due to slowing demand for their products. Read more.
3M cutting 1,800 jobs in U.S. and elsewhere
3M (MMM) said it is cutting 1,800 jobs and ordering some workers to take vacation or unpaid time off the last two weeks of the year. 3M, whose products include cellphone circuits and Post-It notes, also lowered its 2008 outlook due to the global economic downturn. The company cut the jobs in the fourth quarter, mainly in the United States, Western Europe and Japan. These cuts should yield benefits of $170 million in 2009, according to the statement. Read more.
United to lay off more than 1,000 as job cuts continue
United will furlough more than 1,000 workers from positions across the country The Associated Press reports, citing "layoff notices and the unions that represent the workers." The Chicago TribuneRead more.
says "the latest furloughs are among the 7,000 jobs that the Chicago-based carrier had said it would eliminate as it reduces its workforce to match its shrinking airline operations amid the tough economy. United is in the process of grounding 100 airplanes, about 20 percent of its fleet."Pratt & Whitney to layoff 350 workers
Amidst an economic recession, U.S. jet engine manufacturer Pratt & Whitney has decided to lay off 350 workers, which is less than 1 percent of its total operating staff. The company announced this plan yesterday. The workers, 250 of whom are located in Connecticut, hold white collar positions across the industry. Read more.
Calpine names new Senior Vice President, Human Resources
Calpine Corporation announced that Laura D. Guthrie has been named SVP, HR. Previously, she was VP, HR at Hercules Offshorenc. Prior to that she headed HR at Input / Output and Splitrock Services and held various positions of increasing responsibility at UNOCAL Corporation and BHP Petroleum. Read more.
Oakwood Worldwide appoints new Senior Vice President of Human Resources
Oakwood Worldwide announced the appointment of Bill Maxwell to SVP and chief HR EVP of global HR, diversity, and managing director of Global Performance Solutions. Prior to Cartus, he held lead HR positions with Black & Decker. Read more.
RehabCare promotes Human Resources exec to Chief HR Officer
RehabCare Group promoted James F. Martin to senior vice president, CHRO, effective December 1st. Martin has served as VP, HR since joining RehabCare in 2005 and will now fill the position vacated in October by the former CHRO. Prior to RehabCare, he had a 30-year career in employee and labor relations management for several global organizations, including Coors, Pepsi and Trans World Airlines. Read more.