Mike: There are quite a few economic reports on today’s agenda and a couple of them – Challenger Job-Cut Report and ADP Employment Report – show the direction of employment. The Challenger Report shows an improvement with planned job cuts, but since this is considered the time of year where job cuts are at lower levels, the improvement may be temporary.The ADP Report came in worse than expected at 532,000 job losses, but that was higher than the expected 500,000. The March report was revised higher by 54,000, or over 10%, to 545,000. If job losses of 545,000 were originally reported, the reaction would not have been a positive one as it was with the reported job losses of 491,000:
- The Challenger Job-Cut Report indicates lower planned job cuts, but………..:
NEW YORK (Reuters) – Planned layoffs at U.S. firms fell for a fourth consecutive month in May, reaching the lowest level in eight months and offering another sign that the United States may be pulling out of a steep economic tailspin.
Planned job cuts announced by U.S. employers totaled 111,182 in May, down 16 percent from the 132,590 layoffs recorded the previous month, according to a report released on Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
May marked the lowest monthly total since 95,094 job cuts announced last September. Since reaching a peak in January, job-cut totals have fallen by an average of 17.5 percent per month, according to the report.
However, the decline in layoffs may not continue for long.
“This decline in job cuts could be short-lived. The second quarter is typically the lowest quarter of the year when it comes to job cuts,” John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in the report.
- The ADP Employment Report shows:
WASHINGTON (MarketWatch) – The U.S. private sector eliminated 532,000 net jobs in May, the fewest jobs lost since November, according to the ADP employment index released Wednesday.
Goods producing industries cut 267,000 jobs while services cut 265,000.
The index comes two days before the government releases its estimate of May nonfarm payrolls. Economists surveyed by MarketWatch are looking for payrolls to drop by 500,000 in the government survey, which would be the smallest decline since October.
The ADP index does not include government jobs. To get an apples-to-apples comparison with the Labor Department report, you have to add in about 13,000 jobs typically gained in the public sector. That suggests total payrolls fell by about 545,000 in May, compared with the MarketWatch consensus of 500,000 for the Labor Department’s estimate.
The April ADP index was revised to a decline of 545,000 from a decline of 491,000 previously reported.
- IBM reportedly cuts more jobs in New York
- City sends 168 layoff notices – Sacramento Business Journal
- Purchase applications fall over 16%
- U.S. factory orders rose 0.7 pct in April
- ISM nonmanufacturing index rises to 44% from 43.7%
- Jobless rates rise in all US metro areas in April
- More than 600 to lose jobs at Phillips Products in Elkhart
- Principal Financial cuts 220 jobs
- Hillsborough County could cut 900 jobs
- Capital Research and Management to cut 820 jobs
- Billerica Solar-Panel Plant To Close, Lay Off About 200
- Greif, Inc. Reports 678 positions eliminated in 2nd Q
- 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
– Various news outlets reported Tuesday (June 2) that IBM Corp. let go off more workers at facilities in upstate New York.
According to a report on the Times-Herald’s website, Big Blue recently notified contractual and full-time employees in East Fishkill, N.Y., and Yorktown Heights, N.Y., that they were being terminated. The report cites multiple sources including IBM employees.
– So far, the latest cuts have hit at least 88 people nationwide, said Lee Conrad, national president of the Alliance@IBM/Local 1701. He said there have been large numbers of job cuts in recent months.
– EAST FISHKILL — IBM has laid off more local employees — some contractual, others full-time workers — according to multiple sources.
On Monday, IBM filed a notice with the state Department of Labor, citing “economic” reasons, that its manufacturing division would be affected.
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The decline came as refinance activity plunged over 24 percent.
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The Commerce Department said factory orders rose 0.7 percent in April after a revised 1.9 percent drop in March, previously reported as a 0.9 percent fall. It was the second increase in the last three months.
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This latest fiscal crisis won’t immediately affect the 1.1 million Californians now collecting benefits because the state is using an interest-free federal loan to cover their checks.
But the state is supposed to repay that loan and restore its unemployment fund to solvency by 2011 – and right now, policymakers aren’t sure exactly how to do that, or at what cost.
– The Labor Department reported all 372 metropolitan areas tracked saw their jobless rates increase in April from a year earlier. Indiana’s Elkhart-Goshen’s rate jumped to 17.8 percent, up 12.7 percentage points from a year ago. The Indiana region, which posted the largest increase from last year, has been pounded by layoffs in the recreational vehicle industry.
– The cancellation rate could rise again if mortgage rates move higher, but this is a little bit of good news for the builders. Here are a couple of comments I posted last month:
– Thirty-five teachers at Florida A&M’s K-12 School have been told that their contracts won’t be renewed for the coming school year, according to Superintendent Ronald Holmes.
– Sacramento sent layoff letters to 168 employees Monday, giving them three-week notice of a final employment date of June 19 as part of its effort to trim costs and close a budget gap for its next fiscal year.
– Manteca Unified will issue final lay-off notices to 209 teachers by June 15.
The district rescinded layoff notices to another 52 teachers that originally received them in March. The decision came on the heels of more bad news – the loss of $993,000 of state reimbursement of school bus transportation – to push the deficit for the 2009-10 school year to $32,775,000.
– The latest budget casualties included one full-time job at the highway department, the elimination of a part-time technology specialist, and changing the conservation commissioner position from a full to a part-time job.
– The town’s library likely will close one day a week, funding for home-delivered meals to shut-ins will be halved, the state will be asked to take over maintenance of Edenton’s 1767 courthouse, the building housing the county manager and his staff will be closed, and some summer recreation programs are expected to be dropped.
– The Wake County School Board voted on Tuesday to layoff eight employees and eliminate 14 vacant positions. Administrators blame the down economy for slowing the number of construction projects.
– PETAL -City officials voted Tuesday to lay off 19 employees and accepted the resignations of four other workers.
– EAST BRIDGEWATER – Two workers at the Department of Public Works will be laid off by the end of the month, the latest casualties of the town’s budget crisis.
– With the state’s financial crisis hitting home, the Mendocino County Board of Supervisors on Tuesday voted to proceed with the layoff of 14 county employees ahead of the adoption of the 2009/10 budget.
-TAMPA – It’s an emotional day for Hillsborough County workers.
The mood is extremely tense today with many who work for the county wondering, “Is my job safe?”
900 positions are expected to be eliminated. That’s about 25 percent of the workforce.
– The Savannah-Chatham County School Board has approved layoffs for the remaining 150 school system employees who are losing jobs due to budget cuts.
– ASHEVILLE — About 80 Buncombe County teachers received letters Monday telling them their contracts will not be renewed as budget cuts loom and North Carolina weighs increasing class sizes.
– NEWTON – Newton-Conover City Schools will cut 13 teaching and 10 teacher assistant positions for the 2009-10 school year.
-MILLVILLE — The Millville Board of Education voted Monday to slash eight positions across the district.
– To balance the fiscal 2009-’10 budget, Marana Town Manager Gilbert Davidson has proposed the consolidation of several departments and the elimination of 10 positions – eight of which are already being vacated.
– Employees at the three Caterpillar Logistics Services Inc. locations in Lafayette will have their work hours reduced by at least 50 percent through a series of “rolling layoffs” that are planned to begin Aug. 24.
Caterpillar Inc. said the action, designed to bring production levels and costs in line with demand, is being taken in response to the global recession.
– STRASBURG — The loss of a contract to produce interior parts for a line of General Motors pickups and SUVs will mean the loss of 110 local jobs.
International Automotive Components will shift production of 35 injection molds for the GMT-900 line to Mexico by the end of July, according to the Web site of United Auto Workers Local 2999, which represents IAC’s Strasburg plant.
– Harris Corp. laid off more than 100 employees in Melbourne and Palm Bay on Tuesday in its first big work force reduction in a decade, the company confirmed.
– LOUISVILLE, Ky. — Aegon is cutting 138 positions from its Louisville offices.
Thirteen jobs will be eliminated in the next few weeks. The others will let go over the next several months while duties are transitioned to an Aegon office in Cedar Rapids, Iowa.
– Plastics company Nypro Oregon Inc. will close its Corvallis plant and lay off 62 workers by Nov. 30.
– The 28 remaining employees at Opelousas’ Yoo-hoo plant have been told their facility is closing.
– Officials with Cranston Print Works Co. say about 70 workers at the company’s 450,000-square foot Webster plant will be laid off, and 30 will be given customer service jobs at the site.
– St. Paul, Minn. — Dorsey Whitney cut 38 positions from its office in Minneapolis, where the firm is based, as a result of the tight economy, according to spokesperson Bob Kleiber.
– JACKSONVILLE, Fla. — Some employees of the St. Augustine Record will be losing their jobs this year.
– Starbucks is laying off an undisclosed number of workers this week at its customer service center in Seattle, which answers calls and correspondence to Starbucks from all over the world.
– Lufthansa Technik Tulsa, the commercial aircraft component overhaul and repair company, has laid off 30 people, or 27 percent of its work force, half of them in the last month, company executives said Tuesday.
– Lincolnshire-based Zebra Technologies Corp. is on target to lay off about 150 workers at its Vernon Hills manufacturing facility, including a first wave of 64 by July, as the company outsources its manufacturing to China.
– This time, more than 600 employees will be out of a job after the management at Philips Products Inc., a subsidiary of London-based Tomkins PLC, was informed the company would close its doors.
– The plant’s 180 full-time employees will be offered jobs at the company’s other locations, which include a plant in Southbridge, where it makes fiber optics, and a new $100 million facility in New Mexico, said spokesman Brian Lynch.
– “Our staff for many years have done a great job of publishing our paper on presses that have seen better days,” he told the paper. Operators of Welland’s older Goss Urbanite press can apply for jobs in other Sun Media plants, according to the paper.
– Hawker Beechcraft Corp. announced late Tuesday it will be conducting furloughs over 11 days this year and closing two buildings.
– DURHAM, N.H. — The University of New Hampshire is laying off seven staff members, not filling dozens of other positions and instituting a salary freeze as part of $8.3 million in budget cuts.
– DES MOINES, Iowa (AP) – Principal Financial Group Inc. plans to cut 220 jobs, its fourth round of layoffs since December.
– Sun Microsystems Inc. is cutting 18 workers from its Phoenix office at Camelback Road and 24th Street.
– The parent company of American Funds and Capital Guardian Trust Co. will lay off 820 people over the next two weeks.
Capital Research and Management Co., parent company of sent an internal memo to all employees June 1 to that effect.
– Adolor Corp. said Wednesday it is eliminating 45 jobs, or 28 percent of its work force, and implementing other cost-saving moves to reduce its operating cash burn rate.
– BOSTON — A solar-panel manufacturer plans to close its Billerica plant in July, eliminating as many as 200 jobs.
Schott Solar will move its Billerica operations to a new plant in Albuquerque, N.M.
– Full-time employees making $35,000 per year or less will not be affected. Above that threshold, though, cuts will escalate with salary levels.
– The Clinics of North Texas LLP laid off some employees late last week, according to information from Workforce Solutions North Texas, and will reduce its work force even more this week.
– Joel Goodman said Wednesday he laid off six employees last week, the last of a workforce that peaked at 38 in 2006.
“We’ve continually had to make staff reductions to match the sales and pace of the housing market,” said Goodman, who is also closing Triton’s corporate offices in Clive and will run operations virtually to reduce overhead costs.
– Saint Agnes Medical Center has laid off 17 employees to compensate for a decline in state and federal reimbursements and an increase in charity care, the hospital said Tuesday.
– MERRIMACK, N.H. — Fidelity Investments has laid off 45 people in Merrimack.
– WATERLOO — The Red Cross in Waterloo will lose nearly half its staff in an effort by its parent chapter in Cedar Rapids — which has been unable to balance its own budget — to correct systemic financial woes that stretch back a decade.
– The restructuring and other cost reduction activities resulted in the closure of 3 facilities in the second quarter of 2009 and 13 facilities for the year-to-date period, including the elimination of certain operating and administrative positions throughout the Company’s global operations. There were 678 positions eliminated in the second quarter of 2009, increasing the total number to 2,053 in fiscal 2009.
– Lloyds Banking Group plans to shed 530 jobs and close one site in the UK. All jobs will go before year-end.
– Just how many financial services jobs have been lost, or are likely to go, in Scotland remains a murky area. However, new estimates suggest that a further 4,500 posts could to be made redundant.
Skills Development Scotland, quoting statistics from the Business, Enterprise and Regulatory reform department, says filings from firms like RBS, Lloyds Banking Group, Standard Life and Aegon suggest a further 4,500 job cuts are on the cards.
– The company plans to impose a voluntary redundancy program and won’t fill vacant posts, the Johannesburg-based newspaper said.
– FIVE truckers at Kimberly-Clark’s Barrow paper mill have been made redundant.
The drivers were five of 30 employed by logistics company TDG, which runs warehouse and transport operations under sub contract to Kimberly-Clark.
– Three long term employees are due to be made redundant from Gilmartin’s Cash and Carry, Carrick-on-Shannon this month.
– WASHING machine plant, Indesit will close down in July with the loss of over 300 jobs, it has emerged today.
– The move will result in the loss of 87 local jobs at a time of rising unemployment throughout the state and tough times for Cape Ann’s other large industrial businesses.
– Money-losing Gallic pubcaster France Televisions will shed up to 900 employees, some 10% of staffers, between now and 2012 as part of a plan to return it to profitability.
Employees will leave through voluntary early retirement, the company said Tuesday.
– Salmon farming giant AquaChile SA dismissed 180 employees Monday – including managers, office staff and workers – from their plant located in the Cardonal sector of Port Montt, Region of Los Lagos.
– We just learned that New York Public radio station WNYC has laid off four staffers and eliminated 11 unfilled positions. The station’s newsroom reported the following:
– Louisville, Ky. (WHAS11) – A new maintenance hanger at the Louisville International Airport is expected to bring 70 new jobs to Louisville.
-A U.S. bankruptcy judge has granted approval on Tuesday for Hartmarx Corp (HTMXQ.PK) to sell itself to private equity firm Emerisque and SKNL North America, paving the way for the sale of the apparel retailer.
– Kraft Foods Inc. will expand its production facility in Livingston County and create 50 full-time jobs, Gov. David Paterson announced Tuesday.
– What you need to know today to survive and thrive in the recession.
– – The economic downturn has claimed the jobs of tens of millions worldwide but most in the thriving climate change sector feel just as safe in their jobs, if not more so, than they did a year ago, a new Reuters survey shows.
Some 68 percent of ‘green’ workers polled in the first ever Carbon Salary Survey said a heightened response in the past few years from government and business to the threat of climate change has increased their sense of job security.
– Chico’s (NYSE: CHS), which is based in Fort Myers, bought the former 300,000-square-foot Hagemeyer Building on Barrow Industrial Parkway for the expansion. Chico’s ultimately will create 189 full-time jobs at the facility over the next three years.
– New Ellenton, SC—Astrid Stuard and her husband David have owned ACTS Incorporated since 1995. They’re a staffing company primarily for government entities like SRS. So, you can bet they were happy when they heard $1.6 billion was going to SRS to create 3,000 jobs.
Mike: Another busy day on the layoff front. It looks as though state, county, city and school district layoffs are picking up due to those entities having to finalize budgets for next year. One issue with those layoffs is that municipalities will be receiving stimulus funding this year to close budget gaps, but that money may not be available next year, so layoffs could be even more problematic. Time will tell.
Today’s job reports showed some improvement and some worsening, but the job report that most are anticipating will be Friday’s monthly report. Tomorrow is the weekly Jobless Claims report with a consensus estimate of 620,000. It will be interesting to see the revised number from the previous week to see if it improves or is revised higher as has been the case for the past six months. A couple of interesting days will follow. Till Thursday……………
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