Mike: Thursday’s Jobless Claims report shows that weekly claims increased, but continuing claims decreased for the first time after increasing for the past 21 weeks. The four-week moving average, which smooths weekly volatility fell to 615,000. The news media is trumpeting the continuing claims decline without mentioning the effect of people losing their unemployment benefits. There is likely a jobs component, but an ending of jobless benefits shouldn’t be heralded as a turnaround in the jobs market. I’ll wait till later in the day to see what the experts think of this continuing claims improvement, but the fact that jobless claims increased from last week is a sign that the job market is still in difficult times.
Initial claims for state unemployment insurance rose 3,000 to a higher-than-expected seasonally adjusted 608,000, the Labor Department said. Analysts polled by Reuters were expecting claims to dip to 600,000 from a previously reported 601,000.
However, so-called continued claims tumbled 148,000 to a smaller-than-anticipated 6.69 million in the week ending June 6, the latest week for which data is available. It was the lowest level since May 9, and the largest one-week drop since November 2001.
Mike: After reading some blog replies at http://www.calculatedriskblog.com/ I found a statement that fits the continuing claims number a little better:
“It is unlikely that new hiring has picked up in any meaningful fashion,” Joshua Shapiro, chief economist with MFR Inc., a consulting firm, wrote in a note to clients. “More probable is that long-term unemployed are starting to fall off the rolls.”
Mike: If you wonder why some, like myself, remian skeptical of green shoots pronouncements from government officials and the talking heads of MSM, take a look at the following for that answer:
Here is merely a sampling:
August 1st, 2007 – Paulson: “I see the underlying economy as being very healthy,”
October 15th, 2007 – Bernanke: “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”
The Confidence Game In Quotes
Austrian Filter has taken the time to put together all the relevant quotes over the past 2 years that demonstrate how profoundly Bernanke and Paulson have been misrepresenting (or simply misunderstanding) just how extensive the crisis we are in, is. One can only imagine why anyone would ever believe anything Ben Bernanke (or any other vapid disseminator of groundless optimism) has to say anymore, after two years of outright hyperbole and unfounded green shootery.
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
– – Microsoft Corp. has announced that it plans to bring around 100 jobs to Utah and rent an office building at Thanksgiving Point in Lehi for a software development operation.
8:30 AM ET
WASHINGTON — The number of U.S. workers filing new claims for jobless benefits rose slightly as expected last week, suggesting that while job losses have moderated since the beginning of the year, a rapid turnaround in labor-market conditions is unlikely.
Meanwhile, total claims lasting more than one week plunged by their largest amount since November 2001, breaking a streak of 21-straight increases in a rare reprieve for the unemployed in this recession.
10:00 AM ET
The Conference Board said Thursday that its index of leading economic indicators — designed to forecast activity in the next three to six months — rose 1.2 percent, the biggest gain since March 2004. Economists surveyed by Thomson Reuters expected a 0.9 percent increase in May.
10:00 AM ET
The better reading from the Philly Fed Index has overshadowed the Empire number for the time being, no doubt because there were “improved” readings across most components that are part of the report. In particular, the new orders index went to -4.8 from -25.9 while shipments actually picked up to 2.1 from -19.0.
– – DETROIT (AP) — Ford Motor Co. CEO Alan Mulally said government regulation in many ways has hurt innovation among businesses and manufacturers in the United States.
“We’ve become so stymied with regulation,” said Mulally Wednesday during a panel discussion on innovation in manufacturing at The National Summit in Detroit. “We have to say enough is enough and get back to freeing people up.”
Pulling on his experience as the head of Boeing and now Ford, Mulally said U.S. businesses need to be at the forefront of innovation again. Corporate scandals, government bailouts and bankruptcy filings have put a blemish on the business sector.
“We’ve got to make it cool to be in business again,” he said. “We really have to re-polish the value of what business brings to mankind.”
– While there are plenty of 20-something, ramen-eating entrepreneurs coding into the wee hours of the morning, the demographic with the highest rate of entrepreneurial activity consists of those between the ages of 55 and 64, according to a study released today by the The Kauffman Foundation. The study found that folks in the 20-34 age range were the least likely to start companies. The research built on an earlier study that found that average age of entrepreneurs in the U.S. was 39.
The following article from Mish’s Global Economic Trend Analysis shows how states are going to be feeling the money pinch to their budgets and how that is going to affect jobs, services and taxes. I am seeing many more state/county/town layoff notices of late even with the bounty of stimulus money floated to these municipalities. Unless property and other taxes/fees are substantially raised, budget cuts will be excellerated and that will include large job cuts.
– What a Bad April Does to State Budget Processes
An April income tax shortfall comes at the worst time of year for two reasons. First, by the time it is recognized in late April or mid-May, it is just 6-10 weeks before the end of the fiscal year for 46 states. For states without large cash balances, this can create a cash flow crunch or even a cash flow crisis. There is not enough time to enact and implement new legislation cutting spending, laying off workers, raising taxes, or otherwise obtaining resources sufficient to offset the lost revenue before the June 30 end of the fiscal year. As a result, a state without sufficient cash on hand to pay bills must resort to stopgap measures to “roll” the problem into the future.
– After months of anticipating massive cuts blamed on rising personnel costs and the down economy, the Sacramento County Board of Supervisors passed a $4.3 billion budget on Wednesday that calls for laying off about 800 workers and decimating programs – many in public health and social services.
– PORTLAND, Ore. — Up to ninety employees will be laid off from the City of Portland Bureau of Development Services, and more pink slips could follow, according to City Commissioner Randy Leonard.
– STOCKTON — San Joaquin Delta College trustees by a 4-3 vote late Tuesday approved eliminating 86 positions, 44 of which are filled, cuts that would harm programs for students who are disabled or face academic or financial challenges.
– – Faced with $7 million in budget reductions, Anoka County plans to cut 36 positions — with corrections, service centers and libraries among the hardest hit. But few, if any, layoffs are expected.
– – The Jasper County Council approved the layoff of 19 county employees this month to help balance next year’s budget, officials said.
– BRIDGEWATER – Nearly 90 Bridgewater-Raynham Regional School District teachers received pink slips Friday, B-R School Committee Chairman Ronald Pacy said.
-MONROVIA – The city council voted Tuesday to adopt a $60.7 million budget that will eliminate 22 city positions through layoffs, hiring freezes and early retirements in order to help close a $2.6 million budget deficit.
– MODESTO, CA – Ten Modesto police officers found out Wednesday that they would be out of a job in two weeks as part of the city’s effort to fill its budget shortfall, Modesto police officials confirmed.
– WESTERNPORT — The Westernport Mayor and Town Council unanimously approved a fiscal 2010 budget that addresses chronic funding shortfalls by imposing higher water, sewer and garbage fees, and laying off five town employees.
– DANVERS – Two Danvers police officers and two Danvers firefighters were laid off on Thursday, June 11, in response to their unions’ decisions not to accept wage freezes and in fulfillment of an earlier promise by town officials to cut jobs.
– Although most of the reduction has come through attrition that has occurred over the last year, library officials say they must lay off 12 employees to cope with a shrinking property tax base.
– Four of 12 elementary media specialists and two high school media positions will be eliminated. In addition, one high school assistant principal, three high school counselors, the director of fine arts, and two clerical positions will also be eliminated.
– Twenty-seven paraprofessionals in Rochester public schools officially lost their jobs Tuesday, another way the $9.3 million in cuts from earlier this year are taking shape.
– It calls for laying off 23 staff members (mostly from the police and fire departments) to save $6.3 million, asking the remaining staff members to take a 5% pay cut to save $3.6 million, offering early-retirement incentives to save $3.5 million and reducing overtime pay by $1 million.
– Synovus, the second-largest banking company based in Georgia, said Wednesday it plans to cut roughly 650 jobs over the next two years.
– – Twenty jobs in the retail division of Chase USA have been eliminated and about 200 more Springfield employees will shift from retail to the credit card division on site, a spokesman said today.
– – The Guggenheim Foundation is eliminating 25 jobs at the Solomon R. Guggenheim Museum despite record attendance at the New York institution, The New York Times reports.
– The telecom giant, which bought BellSouth a little over a year ago, quietly launched the internal changes on Wednesday and said that some management jobs will be cut to avoid duplication of duties. The company did not say how many jobs would be cut.
– According to the filing with the state, the plant will close on August 31st, eliminating all 156 jobs.
– LORAIN — Fifty-six employees of Kerr Beverage Co. will lose their jobs July 17 when the sale of company assets in Lorain, Huron and Erie counties are expected to be finalized with the Columbus-based Superior Beverage Group.
– KETTERING — Reynolds and Reynolds, a provider of management software and services to auto dealerships, has laid off employees in the past week, while trying to recruit others, a company spokesman said today, June 17.
– The nation’s recession and increased use of other electricity-generating fuels hit home for 61 coal miners who were laid off at the West Elk Mine in Somerset on Tuesday and Wednesday.
– Bank of Hawaii, citing economic conditions, is laying off 12 people from its investment services division.
– The Salisbury SEMCO plant, manufacturers of metal ductwork, was closed Friday, June 12. Forrest Hook, director of manufacturing, said Tuesday afternoon that the closure is due to the economy that has reduced orders for his firm. The decision to close the Salisbury plant put 22 area persons out of work.
– But as many as 23 employees could be losing their jobs in coming weeks. Eighth Floor has decided to consolidate the Hudson Falls operation with its own, which means the local plant will close. The plant employs 23 full-time workers.
– Exelon Corp. is cutting about 500 jobs by the end of August as part of a $350 million cost-savings plan, the Chicago-based company said Thursday.
– The Comair maintenance base at Orlando International Airport will close Sept. 7 claiming 81 jobs.
– New Brunswick’s only French-language daily newspaper is cutting costs by laying off six workers and cancelling a pay increase that was to go into effect on July 1.
– Workers have been told 75 of them will be laid off July 15. The remaining 65 will be phased out when the plant closes its doors Sept. 30.
– CLEMSON, S.C. Clemson University’s in-state students will pay 4.5 percent more in tuition and fees next semester after the school Board of Trustees voted Thursday for the hike to make up for a $45 million budget hole.
– LONDON (AFP) — Irish low-cost airline Ryanair on Wednesday said it would cut 650 more jobs in Ireland, blaming the move on government hikes in taxes amid a deep recession in the eurozone member nation.
– The engineering group GKN has announced a further 900 job cuts and plans to raise £423m through a rights issue.
The Worcestershire-based company, which makes components for the car and airline industries, said 2,700 people had left the group in the five months to the end of May, 300 more than previously expected, with another 600 scheduled to go.
– -Ninety-five jobs are to go at a chicken processing plant in Angus.
The 2 Sisters Food Group is closing its cutting division in Letham, near Forfar, and moving the work to its factory in the West Midlands.
– “Today, Tuesday, we are informing workers at the Traiskirchen site (in Austria) that we are forced to phase out the mixing and gumming activities in Traiskirchen, which employs a total of 195, by the end of this year,”
via Tyres & Accessories.
– Ukraine-focused oil and gas firm Cadogan Petroleum Plc (CADP.L) may restate prior financial statements after identifying irregular payments, cut further jobs
– A Bathgate-based clothing company is to close its distribution plant with the loss of 60 jobs.
– Derry City Council is to begin a trawl for voluntary redundancies ahead of a radical shake-up.
The council says the overhaul has the full support of elected members but it has not yet published the details.
– The Visiocorp plant at Taree is shutting with a loss of more than 200 jobs, blaming the economic downturn.
– National Foods is cutting 34 jobs from its Riverland production workforce of 175, based at Berri.
– ELECTRONICS firm X-Fab is likely to make 65 workers redundant at its Roborough factory after it failed to receive enough orders for one of its high-tech products.
– Finnish wood processing group Metsäliitto said Thursday it would temporarily lay off all personnel working at its sawmills for at least two weeks.
The temporary layoffs are to affect 380 people.
via NewsRoom Finland.
– Berwin Leighton Paisner (BLP) has completed its redundancy consultation, with the firm laying off 85 members of staff.
– LONDON (Dow Jones)–Bus and rail company Go-Ahead Group PLC (GOG.LN) Thursday said it expects its full-year operating performance to be in line with expectations, but said it continues to assume economic conditions will remain difficult until 2011 and warned of further job cuts.
via Article – WSJ.com.
– Clydesdale and Yorkshire Banks, two U.K. banks owned by National Australia Bank Ltd., plan to cut 156 jobs, the Unite labor union said.
– MORE than 40 jobs at Brentwood Council are set to be axed in a restructuring move to save money.
– Izhavto human resources director Gennady Chernenko told journalists that the plant employs more than 5,000 people in Izhevsk, the capital of the western Russian republic of Udmurtia.
– June 17 (Bloomberg) — Chrysler Group LLC, the U.S. automaker created out of bankruptcy last week, said it will resume production at seven vehicle plants the week of June 29.
The facilities are in Michigan, Ohio, Missouri, Ontario and Mexico, the company said today in a statement. Chrysler reopened a Detroit car factory on June 15. Other assembly plants may not open until late July after they are reconfigured to build 2010 models, spokeswoman Dianna Gutierrez said in an interview.
Mike: Till Friday……………………
Tags: COBRA, cut jobs, economic, employment, factory closing, firing, hiring, job loss, jobs cut, laid off, layoffs, plant closing, positions eliminated, redundancies, staff cuts, unemployment, workforce reduction