Initial jobless claims rose by 32,000 to 637,000 in the week ended May 9, from a revised 605,000 the prior week, the Labor Department said today in Washington. A “good part” of the jump was from states reporting an increase in auto-related claims, a spokesman for Labor said without providing a more precise estimate.
Mike: This below quoted economist says that we shouldn’t pay too much attention to the jump in claims because it was driven by Chrysler layoffs???? So all would be fine if there weren’t layoffs? It’s clueless ones like this who make economists such a disliked breed. What will he say next week, “Don’t pay attention to those higher claims because it was driven by GM layoffs, parts supplier layoffs, Chrysler dealer closings, technology layoffs, or municipal and school budget cuts?” I’m reminded of one of the hilarious Leslie Nielsen, Naked Gun films when he is standing in front of a massive fire caused by an explosion and he says to the panicked crowd, “Move on, nothing to see here, please disperse………..” (See the below YouTube post for details :)
“The labor market is still very weak,” Robert Mellman, an economist at JPMorgan Chase & Co. in New York, said before the report. Still, “we should probably not pay too much attention” to the jump in claims last week because it was driven by the Chrysler layoffs, he said. “Most auto workers sign up fairly quickly.”
– In another sign of labor market weakness, the tally of people continuing to receive benefits increased to 6.56 million from 6.36 million, setting a record for the 15th straight week and worse than analysts expected. The continuing claims data lags initial claims by one week.
Mike: I find it interesting that last week’s jobless claims of 539,000 was considered a big improvement that signaled an end to increasing numbers of jobless, even though those numbers were skewed by the hiring of 66,000 Census Bureau workers. This week we get the pundits saying that today’s higher numbers shouldn’t be trusted due to the auto layoffs. So lower numbers skewed by Census jobs is good and higher numbers due to auto layoffs are good. So in conclusion, all unemployment numbers are now good!
I think one reason why these pundits are often wrong about thinking unemployment will improve in the short term is that they fail to see the bigger picture. They may base their assumptions on WARN notices, business birth and death rates and historical economic references, but they may fail to see the fallout of massive layoffs, similar to those at the auto companies, and the steady bleed of jobs at the state and county level. The restaurants, retails outlets, auto service garages, gas stations, banks, grocery stores, day care centers, salons, saloons, etc., that need to either cut back or close due to the shuttering of auto plants, steel mills, and manufactures of all kinds is not taken into account. Also, the jobs that municipalities have to cut due to lower tax receipts aren’t usually reported in big bunches, but in little notices. Yet thousands of little notices add up to be hundreds of thousands of lost jobs.
Since the majority of these pundits spend their entire working lives in the safety of academia, think tanks, or the top floors of corporate kingdoms, they aren’t likely to see the economic trials of the ordinary person and the domino effect of job losses. I can only assume the height of their position blinds them to the facts on the ground. Till tomorrow…………..
- Chrysler moves to eliminate 789 of 3,200 dealers
- Chrysler Dealer Closings PDF
- City Of Orlando To Cut Over 300 Jobs
- Dana cuts 115 jobs at Fort Wayne axle plant
- Free Lipitor, Viagra, other drugs for jobless
- Siemens Energy to add 226 jobs in Charlotte
- Summer construction will create up to 1,314 jobs in Kane County
- Trinidad Drilling cuts 500 jobs
- CAE to cut 10 per cent of workforce
- Layoff rumors worry IBMers
- Nike to cut about 1,750 jobs worldwide
- Microsoft/Google/IBM and other Rumors/News
General Economic News
Government Layoff News
US and some Canada Layoff News
International Layoff News
Hiring News and News You Can Use
– EAST FISHKILL — IBM workers are on pins and needles once again, expecting more job cuts either this month or next.
“There have been rumblings about another layoff at the end of June,” said an employee who asked to remain anonymous. He said some cuts are reportedly expected to take place in Building 330, the semiconductor packaging plant.
Mike: Everyone wins, except the taxpayer.
– For example, if the homeowners do not qualify for a loan modification, their lenders could receive up to $1,000 if they allow the home to be sold in a short sale. In such deals the lender accepts less than the value of the mortgage. The homeowners might also be eligible for $1,500 for relocation expenses.
The administration also announced details of a $10 billion feature of the program that would shield lenders from losses associated with falling home prices.
– WASHINGTON (Reuters) – U.S. producer prices rose faster than expected in April, government data showed on Thursday, driven by a surge in food costs.
The Labor Department said the Producer Price Index climbed 0.3 percent after declining 1.2 percent in March. Food prices rose 1.5 percent in April, the biggest increase since January 2008. Food costs rose on a record jump in egg prices, along with soaring prices for vegetables and meat.
Mike: Instead of mending Social Security in an ongoing manner, our elected leaders put it in a box and ignore it until drastic changes are needed, which are likely to be more harmful financially.
–Social Security and Medicare’s annual checkup revealed that the recession and longer life expectancies are taxing the health of the entitlement system. The Social Security Board of Trustees report found that program costs will exceed tax revenues in 2016, a year sooner than predicted in last year’s report. The trust fund will be exhausted in 2037, four years sooner than the 2008 estimate.
– PARIS (AP) — Oil consumption will this year fall at the sharpest pace since 1981 due to the crisis afflicting world economies, the International Energy Agency said Thursday as it made new cuts to its forecast for crude demand.
In its closely watched monthly survey, the Paris-based agency said it now expects global oil demand to fall 3 percent to 83.2 million barrels a day this year, or 2.6 million barrels a day less than in 2008. It was the ninth consecutive monthly cut that the IEA has made to its oil demand forecast.
Mike: Not even Mickey can save Orlando city jobs………….
– ORLANDO, Fla. — The City of Orlando announced Wednesday it is slashing more than 300 jobs, including 72 firefighters. The city is cutting its entire workforce by 10 percent to try to save $34 million.
– BERRIEN SPRINGS — The Berrien County regional agency that provides special education for disabled students plans to lay off nine staffers in June and eliminate another 6.5 jobs through retirements and attrition.
– CONCORD — More than 400 final layoff notices for teachers in the Mt. Diablo school district will be mailed out by today.
-DAYTON, Ohio — Montgomery County Sheriff Phil Plummer said 5 deputies and 10 security officers will be laid off June 1.
– Val Verde Unified School District trustees voted Tuesday to lay off 96 teachers and 24 nonteaching employees.
– Approximately 18 paraprofessionals in Hall County schools are being informed this week they will not have a job in the classroom after May 27.
– The Flowing Wells school district is losing more than 30 positions but gaining seven parent-community-involvement coordinator jobs.
– SPRINGFIELD – Latest calculations show 99 jobs will be cut from the School Department in the proposed budget of $307 million that will be the subject of a public hearing tonight.
– OLYMPIA – A $21 million reduction in state and other funding over the next two years will require the Washington Department of Fish and Wildlife (WDFW) to lay off 76 employees and curtail some public services.
– Anaheim City School District has released the following names of 120 teachers who have received final layoff/termination notices.
– The bad news for many Chico Unified teachers became official Wednesday night with the final approval of the elimination of more than 135 full-time positions.
– Stearman, along with 72 other teachers in the Oceanside Unified School District, were issued final layoff notices at a board meeting Tuesday.
– Florida High Administration is confirming they had to let go of 37 annual contract teachers, out of the entire 117, due to re-organization efforts at the school.
– Amid declining enrollment and budget concerns, the Whitefish School Board voted unanimously Tuesday night to cut its district’s staff.
Mike: I haven’t seen any mention yet of how many jobs will be affected by the Chrysler dealership closings, but if I just take a lower estimate and assume there are 25 jobs attached to each dealership, then I would assume that nearly 20,000 jobs will be lost. Some dealerships may be able to grab a new brand or even be absorbed by more profitable dealers, but the job loss will nonetheless be extensive and that job loss will especially impact smaller communities that depend on dealership jobs and the taxes they produce.
– The company, in a motion filed with the U.S. Bankruptcy Court in New York, said it wants to eliminate 789 dealerships by June 9. Many of the dealers’ sales are too low, the automaker said. Just over 50 percent of dealers account for about 90 percent of the company’s U.S. sales, the motion said.
– Employees at Integrity Chrysler, Jeep and Dodge have been told they will all be let go by the end of May, starting with the service department, which is set to close Saturday.
A total of 118 workers will be let go at the location near Interstate 215 and Rainbow.
– PORTLAND, Ore. (AP) — Shoe and apparel company Nike Inc. said Thursday that it will cut about 1,750 jobs worldwide, or 5 percent of its global work force.
– The University of Washington athletic department cut 13 positions from its staff on Wednesday as part of an effort to reduce its budget by $2.8 million for the coming year.
– The state’s largest Level 1 trauma center announced Wednesday it will eliminate 75 to 100 full time positions by the end of June…with more actual layoffs occurring this time. Currently, almost all of the targeted positions are filled; in February, the hospital eliminated already vacant positions.
– The cuts affect about 80 employees represented by United Auto Workers Local 2289, as well as nonunion hourly and salaried employees.Executives at the plant did not return calls yesterday seeking comment.
– The National Association of Student Financial Aid Administrators has laid off five employees as part of budget cuts necessitated by diminished investments and declines in its conference revenue, the group announced Wednesday.
– About 66 unionized workers and four management staff will lose their jobs at the Louisiana-Pacific Corp. plant in East River.
– TROY — Faurecia Exhaust Systems Inc. has permanently laid off nearly 170 local workers, the company has told Ohio government.
– DURHAM, N.H. (AP) – In a second round of layoffs this year, printing press manufacturer Goss International has cut its workforce by 170 people, with most of the cuts in New Hampshire.
– Fort Wayne – A union leader says Dana Holding Corp. has laid off nearly half of the employees at its Fort Wayne axle plant, due to the temporary shutdown of Chrysler plants.
– MeadWestvaco Corp. is closing its Wilmington beverage packaging plant by August with the loss of 110 jobs.
– Trinidad Drilling Ltd. has cut more than 500 jobs and is looking at moving more rigs into international markets as it tries to deal with a severe slump in North American oil and gas drilling.
– MONTREAL — CAE Inc. (TSX:CAE) is slashing 700 jobs and imposing cost-cutting measures on its remaining workforce as the flight training firm anticipates a dropoff in orders from the civil aviation sector and takes advantage of improved efficiency in its manufacturing process.
– About 50 Anthem Blue Cross and Blue Shield jobs are being cut as parent company WellPoint Inc. plans to outsource its internal information technology help-desk functions.
– DARTMOUTH — Continuing what it calls an executive and administrative streamlining, UMass Dartmouth this afternoon announced the restructuring of dozens of jobs that will eliminate a total of about 30 positions.
– CARE, the international humanitarian agency headquartered in Atlanta, laid off 54 workers, slashed management salaries by 10 percent and staff salaries by 4 percent this week.
– In its first round of job cuts, Hunton & Williams has laid off 23 associates and of counsel and 64 staff members.
– After laying off seven lawyers in February, Fennemore Craig has now let go about 10 staff members.
– Day Pitney has laid off 20 attorneys this week, including four from the Hartford, Conn., office and six from Florham Park, N.J., firm officials said Wednesday. Day Pitney’s other Connecticut offices also were affected.
– Fish & Richardson PC is reportedly trimming its work force by 120 people — 35 from the intellectual property firm’s legal staff and 85 from its support staff — after announcing numerous job cuts earlier this year.
– Platform-A let 17 people go yesterday as part of a structural change designed to help revitalize its field sales efforts. The staffers all held sales support positions that have been eliminated, according to an AOL source.
– Clovis, CA (KFSN) — The company, which specializes in video surveillance cameras and equipment, announced that it will be eliminating 17-sales positions.
– Human resources director Mike Hudson said 66 Shelbyville production employees have been laid off from Knauf’s Plant No. 1 and Plant No. 3 over the past several weeks. Hudson said another 40 or so local production employees will be laid off Monday.
– Bumping rights will depend on the collective bargaining agreement, he said. About 141 employees are expected to be affected.
– More than 240 teachers are getting layoff notices across Snohomish County as state budget cuts and declining enrollment take a toll on classrooms.
– Fort Collins-based Woodward Co. laid off about a dozen employees last month from its Fort Collins and Loveland locations.
– Human resources manager Robin Anthony says workers at the Brooklyn mill will be laid off from June 6 to July 16. It will be the third shutdown since December.
– Despite having tens of millions of dollars to pay players, NBA teams are having to make layoffs to deal with the ongoing recession. The Miami Heat is the latest team to make cutbacks to parts of its staff to help make ends meet. The total number of layoffs will be around 20, according to the South Florida Sun-Sentinel.
– DayStar Technologies Inc. said Wednesday that chief executive Stephan J. DeLuca has resigned and the company will cut about 30 percent of its staff.
– Executives at the Sunnyvale, Calif.-based company confirmed that a “small number of employees were affected and let go.” Executives maintained that they were unable to disclose exact numbers or names of affected individuals, but said that at least one channel account manager was let go on the East Coast.
– Tony Grindberg says the slumping economy is to blame. He says more than 20 people will lose their jobs.
– The company expects to offer jobs to about 200 of Integrated Metal Technologies’ 320 employees, according to a spokesman. Herman Miller’s only union operation, Integrated Metal Technologies makes metal parts for office furniture systems.
– LONDON (AP) — Telecommunications company BT Group PLC said Thursday it expects to cut another 15,000 jobs in the next year after its Global Services division dragged the company to a fourth quarter loss of nearly 1 billion pounds.
– HELSINKI, May 14 (Reuters) – Finnish engineer Wartsila Oyj (WRT1V.HE) said on Thursday it would trim the 1,300-strong workforce at its key ship engine unit by up to one third due to a sharp fall in demand, but stuck to its 2009 forecasts.
– The telecoms company BT has said job losses in Scotland will be in the hundreds rather than the thousands.
– Further 600 jobs to go in Ceramics
The latest round of job losses means the group will have cut 3,200 jobs — or almost 20 percent of its staff — by the end of 2009.
– John Menzies Plc (MNZS.L), a newspaper distribution and aviation services firm, said its year-to-date trading remained in line with its view and that it had cut 400 more jobs and froze salaries to reduce costs.
– Finnish engineering group Wärtsilä said in a statement Thursday it would cut up to 450 jobs, including about 80 in Finland, in order to adjust to “substantially weakened” demand on the ship engine market.
via NewsRoom Finland.
– More than 30 Irish NGO workers have lost their jobs as result of massive cuts to the overseas aid budget.
– PREMIER David Bartlett expects 30 to 40 jobs to be lost in the abolition of the Department of Environment, Parks and Heritage and the Arts.
– We’re slowly getting details from the UJC about its recent batch of 31 layoffs (part of an 18 percent budget cut — from $37 million this year to $30.3 in 2009-10). Here’s what we know from the organization itself and other sources:
– Agora SA is preparing the next set of 100 layoffs creating a total of about four hundred people being made redundant from the media giant.
– There were layoffs and rumors of studio closings, but now it’s finally confirmed. According to the company website, the San Rafael-based Factor 5 studio has officially closed its doors.
– The consequence of this is that, unfortunately, we will have to look at our staffing levels in London over the coming weeks as we restructure to reflect changing client needs.
– More than 100 management and administration staff at Leonard Cheshire Disability will either lose their jobs or be redeployed as part of a review designed to save millions of pounds.
– NASSAU — Nearly 500 workers at the Four Seasons Resort at Emerald Bay Exuma will soon be out of a job when the property — which has been in receivership for more than a year — closes its doors.
– TRENTON, N.J. (AP) — Pfizer Inc. says it will provide 70 of its most widely prescribed prescription drugs — including Lipitor and Viagra — for free to people who have lost their jobs and health insurance.
The world’s biggest drugmaker said Thursday it will give away the medicines for up to a year to Americans who lost jobs since Jan. 1 and have been on the Pfizer drug for three months or more.
– Siemens Energy plans to expand in Charlotte, adding 226 jobs.
State officials today approved a grant worth as much as $2.7 million over nine years to attract the jobs.
-General Mills, an international company that markets some of the world’s best- known food brands, will establish a new distribution center in Social Circle, investing $42 million and creating 112 jobs.
– Bosses at bed spring manufacturer Leggett and Platt Springs UK confirmed staff had been informed of the job cuts.
– Every week, Monitor staffers comb the job listings in search of interesting places to work.
The seven most intriguing jobs we found this week are in Madison, Wis.; Chicago; Sun City Center, Fla.; Tulsa, Okla.; Grand Forks. N.D.; Pittsburgh; and Columbus, Ohio.
– With a single vote this week the Kane County Board wrote a check totaling $37.5 million that will buy it better transportation and about 1,300 jobs if estimates prove true.
Mike: A busy day with Chrysler detailing its dealer closings and with jobless claims increasing. Tomorrow should and hopefully will be a quieter day. Till then……………….
Tags: COBRA, cut jobs, economic, employment, factory closing, firing, hiring, IBM, job loss, jobs cut, layoffs, plant closing, positions eliminated, redundancies, staff cuts, unemployment, workforce reduction