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:

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.

via U.S. planned layoffs fall to lowest in 8 months – Yahoo! Finance.

 

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.

via Private sector cuts 532,000 jobs in May, ADP says – MarketWatch.

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Steve Kelley - June 3

Steve Kelley - June 3

* Larger layoff announcements and important economic reports:
US/Canada:
International:
Navigation links to today’s stories:

Microsoft/Google/IBM and other Rumors & News

 

ibm– 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.

via EETimes.com – IBM reportedly cuts more jobs in New York.

 

ibm1– 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.

via Covering the Hudson to the Catskills!.

 

ibm2– 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.

via IBM workers face ax in latest round of layoffs | recordonline.com.

 

General Economic News

 

– Industry data released on Wednesday showed that mortgage application volume tumbled over 16 percent last week, including an adjustment for the Memorial Day holiday. On an unadjusted basis, the Index plunged 32.5 percent.

The decline came as refinance activity plunged over 24 percent.

via RTTNews – World Economic Newswire, North American Economic News, Forex Top Story…. .

Factory Orders
[Report][Bullet
10:00 AM ET
– New orders received by U.S. factories rebounded in April, government data showed on Wednesday, but the previous month’s figure was sharply revised downwards to show a steeper drop.

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.

via U.S. factory orders rose 0.7 pct in April | Markets | Markets News | Reuters .

ISM Non-Mfg Index
[Report][Bullet
10:00 AM ET
– Business worsened in May in the nonmanufacturing sectors of the U.S. economy for the eighth consecutive month, according to the Institute for Supply Management. The ISM nonmanufacturing index rose to 44% from 43.7% in April.
_________________________________________________________________________________________________________
– California is paying out so much for jobless benefits and collecting so little in payroll taxes that its unemployment insurance fund could be $17.8 billion in debt by the end of 2010, according to a new report from the state Employment Development Department.

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.

via State’s unemployment fund short by billions.

 

– 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.

 

 

Ted Rall - June 3

Ted Rall - June 3

 

– 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:

Government Layoff News

 

 

– 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.

via Update: 35 FAMU DRS teachers lose jobs; eight teachers remain | tallahassee.com | Tallahassee Democrat.

 

– 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.

via City sends 168 layoff notices – Sacramento Business Journal: .

 

– 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.

via 209 teachers definitely losing jobs.

 

– 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.

via Raynham cuts 2 jobs as budget tightens – Taunton, MA – The Taunton Gazette.

 

– 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.

via Chowan Co. cuts jobs, raises taxes to balance budget | HamptonRoads.com | PilotOnline.com .

 

– 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.

via News 14 | 24 Hour Local News | Triangle | Wake Co. Schools to cut some construction jobs .

 

– PETAL -City officials voted Tuesday to lay off 19 employees and accepted the resignations of four other workers.

via Petal to lay off 19 workers | hattiesburgamerican.com | Hattiesburg American.

 

– 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.

via Two DPW workers laid off in East Bridgewater – East Bridgewater, MA – East Bridgewater Star.

 

– 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.

via 14 county workers to be laid off – Ukiah Daily Journal.

 

-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.

via Hillsborough County could cut 900 jobs.

 

– The Savannah-Chatham County School Board has approved layoffs for the remaining 150 school system employees who are losing jobs due to budget cuts.

via Layoffs Finalized for Savannah Chatham Schools | WSAV.

 

– 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.

via County to lose 80 teachers with state cuts | CITIZEN-TIMES.com | Asheville Citizen-Times.

 

– NEWTON – Newton-Conover City Schools will cut 13 teaching and 10 teacher assistant positions for the 2009-10 school year.

via Newton-Conover City Schools announces cuts.

 

-MILLVILLE — The Millville Board of Education voted Monday to slash eight positions across the district.

via Millville schools slash 8 positions | thedailyjournal.com | The Daily Journal.

 

– 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.

 

 

US and some Canada Layoff News

 

 

– 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.

via ‘Rolling layoffs’ at Cat Logistics | jconline.com | Journal and Courier.

 

– 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.

via 110 furloughed workers to lose jobs – Business | nvdaily.com.

 

– 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.

via Job cuts in Melbourne and Palm Bay tied to high-tech work that is being phased out — OrlandoSentinel.com.

 

– 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.

via Aegon Cutting Jobs – Money News Story – WLKY Louisville.

 

– Plastics company Nypro Oregon Inc. will close its Corvallis plant and lay off 62 workers by Nov. 30.

via Nypro Oregon closing Corvallis plant – Portland Business Journal: .

 

– The 28 remaining employees at Opelousas’ Yoo-hoo plant have been told their facility is closing.

via Yoo-hoo plant in Opelousas to close – Forbes.com.

 

– 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.

via Textile printing plant closing – BostonHerald.com.

 

gavel1– 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.

via MPR: State’s largest law firm cuts 55 jobs.

 

newspaper2– JACKSONVILLE, Fla. — Some employees of the St. Augustine Record will be losing their jobs this year.

via St. Augustine Record Cutting Jobs – Jacksonville News Story – WJXT Jacksonville.

 

starbuck– 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.

via Coffee City | Starbucks laying off customer service workers in Seattle | Seattle Times Newspaper.

 

– 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.

via Tulsa World: Lufthansa Technik announces 30 layoffs .

 

– 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.

via Daily Herald | Zebra starts layoffs, transition to China.

 

phi– 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.

via More than 600 to lose jobs at Phillips Products in Elkhart | WSBT South Bend – Your Local News Leader | Local News .

 

– 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.

via Semiconductor International articleXML.

 

newspaper3– “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.

via Sun Media to Close Welland ‘Tribune’ Pressroom .

 

beech– Hawker Beechcraft Corp. announced late Tuesday it will be conducting furloughs over 11 days this year and closing two buildings.

via Hawker announces furloughs, building closures – Wichita Business Journal: .

 

– 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.

via UNH To Lay Off 7 Staff Members – Money News Story – WMUR Manchester.

 

principal-financial– DES MOINES, Iowa (AP) – Principal Financial Group Inc. plans to cut 220 jobs, its fourth round of layoffs since December.

via Principal Financial cuts 220 jobs – Action 3 News – Omaha, Nebraska News, Weather, and Sports | .

 

– Sun Microsystems Inc. is cutting 18 workers from its Phoenix office at Camelback Road and 24th Street.

via Sun Microsystems cuts 18 Phoenix jobs – Phoenix Business Journal: .

 

– 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.

via Capital Research and Management to cut 820 jobs – Investment News .

 

– 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.

via Adolor cutting 45 jobs – Triangle Business Journal: .

 

– 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.

via wbur.org: Billerica Solar-Panel Plant To Close, Lay Off About 200.

 

newspaper4– Full-time employees making $35,000 per year or less will not be affected. Above that threshold, though, cuts will escalate with salary levels.

via Bham News to cut pay, lay off part-timers | Birmingham Weekly .

 

– 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.

via Workforce Solutions: Clinics of North Texas laying off workers : Local : Times Record News.

 

– 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.

via Triton Homes halts new construction, lays off employees | DesMoinesRegister.com | The Des Moines Register.

 

hospital2– 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.

via Saint Agnes lays off 17 more workers – Local – fresnobee.com .

 

– MERRIMACK, N.H. — Fidelity Investments has laid off 45 people in Merrimack.

via Fidelity Lays Off 45 In HR Department – Money News Story – WMUR Manchester.

 

– 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.

via WCFcourier.com – Waterloo and Cedar Falls Iowa News Homepage | News » Local.

 

– 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.

 

 

 

International Layoff News

 

 

 

lloyds-banking– 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.

via Finance jobs, banking jobs, recruitment in investment banking & in the financial markets.

 

– The company plans to impose a voluntary redundancy program and won’t fill vacant posts, the Johannesburg-based newspaper said.

via Bell Equipment to Cut Jobs, Salaries, Business Report Says – Bloomberg.com.

 

– 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.

via North West Evening Mail | News | Truckers laid off at Kimberly-Clark in Barrow .

 

– Three long term employees are due to be made redundant from Gilmartin’s Cash and Carry, Carrick-on-Shannon this month.

via Jobs cut at Gilmartin’s Cash & Carry – County Leitrim Today .

 

– WASHING machine plant, Indesit will close down in July with the loss of over 300 jobs, it has emerged today.

via Daily Post North Wales – News – North Wales News – Kinmel Bay Indesit plant to close with 300+ jobs to go.

 

– 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.

via ITT Rule plant leaving for Mexico – GloucesterTimes.com, Gloucester, MA.

 

– 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.

via France Televisions to cut 900 jobs – Entertainment News, Entertainment Industry & the Economy, Media – Variety.

 

– 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.

via FIS – Worldnews – AquaChile lays off 180 plant workers from Port Montt.

 

– 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:

 

 

Hiring News and News You Can Use

 

 

– Louisville, Ky. (WHAS11) – A new maintenance hanger at the Louisville International Airport is expected to bring 70 new jobs to Louisville.

via New maintenance hanger to bring 70 jobs to Louisville International Airport | LOCAL NEWS | WHAS11.com | News for Louisville, Kentucky.

 

-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.

via U.S. judge approves motion for Hartmarx sale | Industries | Financial Services & Real Estate | Reuters .

 

– Kraft Foods Inc. will expand its production facility in Livingston County and create 50 full-time jobs, Gov. David Paterson announced Tuesday. 

via www.WHEC.com – Kraft Foods to add 50 jobs in Avon .

 

– What you need to know today to survive and thrive in the recession.

via Recession Briefing 6.3 | Recessionwire.

 

– – 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.

via High-earning green sector workers feel safe in jobs | Reuters .

 

– 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.

via Chico’s to expand, add 189 jobs in Georgia – Tampa Bay Business Journal: .

 

– 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.

 

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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……………

 

 

Steve Benson - June 3

Steve Benson - June 3

 

 

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