Today the weekly Jobless Claims report and the monthly Employment Situation report show that the employment picture is still cloudy and not recovering quickly. The fall in continuing claims is likely more a matter of people exhausting unemployment benefits than finding new employment:

WASHINGTON (AP) — Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy’s road to recovery will be a bumpy one.

Economists had expected 363,000 job cuts last months, and that the jobless rate would rise to 9.6 percent from 9.4 percent in May.

via 467K jobs cut in June; jobless rate at 9.5 percent – Yahoo! Finance.

– WASHINGTON (MarketWatch) – First-time claims for state unemployment benefits declined in the latest week, almost completely reversing the gain from the prior week, the Labor Department reported Thursday. The number of initial claims in the week ending June 27 fell 16,000 to 614,000, quite close to the consensus of Wall Street economists. Claims in the previous week were revised to an increase of 18,000 to 630,000 compared with the initial estimate of a increase of 15,000 to 627,000.

via Jobless claims fall, reversing prior week’s gain – MarketWatch.

– WASHINGTON, July 2 (Reuters) – The number of U.S. workers filing new claims for jobless benefits fell by 16,000 last week, and the number staying on the rolls after collecting an initial week of aid also fell, the government said in a report on Thursday.

via U.S. jobless claims fell 16,000 in latest week | Reuters .

Mike: As you can see from the below graph, the real unemployment rate (u6) is nearly twice the reported U3 rate.

Chart of U.S. Unemployment

Mike: You can view the entire BLS monthly report here (warning PDF):

Here are a few snippets:

The number of unemployed persons (14.7 million) and the unemployment rate (9.5 percent) were little changed in June. Since the start of the recession in December 2007, the number of unemployed persons has increased by 7.2 million, and the unemployment rate has risen by 4.6 percentage points. (See table A-1.)


The second graph shows the June deterioration from May, which breaks a four-month streak of improved job losses:


From the BLS report:

Total nonfarm payroll employment continued to decline in June (-467,000). Job losses from April to June averaged 436,000 per month, compared with losses averaging 670,000 per month from November to March. Since the recession began in December 2007, payroll employment has fallen by 6.5 million. In June, job losses continued to be widespread across major industry sectors. (See table B-1.)

Employment in manufacturing fell by 136,000 over the month and has declined by 1.9 million during the recession. Within the durable goods industry, motor vehicles and parts (-27,000), fabricated metal products (-18,000), computer and electronic products (-16,000), and machinery (-14,000) continued to lose jobs in June. Since the recession began, employment in motor vehicles and parts has declined by 335,000, or about one-third.

In June, employment in construction fell by 79,000, with losses spread throughout the industry. Since the start of the recession, construction employment has fallen by 1.3 million.


Here are a few more interpretations of today’s poor job numbers:


However job losses have really picked up over the last 9 months (4.4 million jobs lost, red line cliff diving on the graph), and the current recession is now the 2nd worst recession since WWII in percentage terms – and also in terms of the unemployment rate (only early ’80s recession was worse).

via Calculated Risk: Employment Report: 467K Jobs Lost, 9.5% Unemployment Rate.

Workers lost jobs at a faster pace in June than in the prior month, the Labor Department said Thursday. Nonfarm payrolls shrank by 467,000 in June higher than the 325,000 decline expected by economists surveyed by MarketWatch and the 322,000 jobs lost in May.

via EconomPic: Unemployment Jumps… Can We PLEASE Forget About Inflation?.

Mike: Here is another great site that I encourage you all to visit because of their insight and honesty. They offer the following summation of today’s layoff reports and I agree completely with their description of the Obama administration:

And here is the only chart worth watching, the long term trend. There has been no bottom yet reached in the jobs lost. This is not so much a reflection on the stimulus because of the lag, and the obvious data showing that consumers tended to use the stimulus to pay down their immediate debt which is a worthwhile endeavor, but does not give a quick boost to jobs.

The issue might be a bit of a red herring, because the economic stimulus pales by comparison with the enormous amount of stimulus provided to the banking sector, which is stimulating some operators like Goldman Sachs to pay their employees, on average, a record $700,000 in annual pay. Now THAT is stimulus, but perhaps one that is counterproductive.

We are on the record in the opinion that the Obama economic team is ineffective, backward-thinking, compromised, and possibly corrupt. They are serving the corporate banks and not the people. They should be replaced starting with Larry Summers who is a Greenspan and Rubin crony and the core of failure on the team. Tim Geithner should follow to find better employment for his talents, possibly as a salesman of men’s suits.

via Jesse’s Café Américain: The June Non-farm Payrolls Report.


Larger layoff announcements and important economic reports:

Navigation links to today’s stories:

Microsoft/Google/IBM and other Rumors & News

apple– Reliable sources told Palluxo that Apple’s CEO Steve Jobs collapsed at work Wednesday afternoon due to high blood pressure. Sources indicated he collapsed only temporarily and was able to regain conscious within few seconds.

General Economic News

– NEW YORK ( — Here come the California IOUs, again.

The state, fast running out of cash, is on the brink of not being able to pay its bills for the second time this year.

Unless the governor and legislature pass a balanced budget by Thursday morning, the state will start issuing IOUs to county agencies, small businesses and taxpayers owed billions of dollars

via California, running short on cash, on verge of issuing IOUs – Jul. 2, 2009 .

– Euro zone unemployment crept up to its highest level in 10 years in May, data showed today, casting a shadow on prospects for any quick recovery from the worst economic recession since the second World War.

The unemployment rate in the 16-nation euro zone rose to 9.5 per cent from April’s 9.3 per cent as 273,000 people lost their jobs in the month, bringing the number of those out of work to 15.013 million, European Union statistics office Eurostat said.

via EU unemployment at 10-year high – The Irish Times – Thu, Jul 02, 2009.

Mike Luckovich

Mike Luckovich

Government Layoff News

Mike: I post the following article because it shows how some boom and bust locations, which are now bust, are getting hit hard in the property tax department. Municipal jobs are highly dependent on the tax base and with a shrinking tax base in many location, the jobs cuts you see this year are likely to be even worse next year. Another factor to consider is that stimulus funds have been sent to many locations and those funds won’t be available next year, unless more stimulus funds are made available.

ST. LUCIE COUNTY — Port St. Lucie was hit the hardest in St. Lucie County in decreased property values, County Property Appraiser Jeff Furst said, leaving officials with decisions between tax increases and layoffs to fill the shortfall.

The numbers are not coming as a surprise, but Port St. Lucie’s property tax values fell 25.6 percent, which could lead to a budget shortfall of more than $14 million. St. Lucie County is expected to have a 20.9 percent decrease in taxable property values, Fort Pierce will have a 17.4 percent decrease and St. Lucie Village would have a 12.7 percent decrease, according to Furst’s office.

via Port St. Lucie property tax values fall 25.6 percent : St. Lucie County : TCPalm .

– More than 500 Chicago Public School employees were given pink slips Wednesday in what officials said was the largest round of layoffs to ever hit the nation’s third-largest school system.

– TAVARES — Lake County Clerk of Courts Neil Kelly has laid off 10 employees, citing budget restraints prompted by new state legislation that has required clerks throughout Florida to impose severe cost-cutting measures.

via State forces court clerk layoffs — 10 lose jobs in Lake –

– Five city positions have been eliminated, and two city employees will lose their jobs, City Manager Billy Morse said Wednesday

via Two Toccoa city employees to lose jobs, and three to take on new roles : Northeast Georgia : Anderson Independent-Mail.

– Of the 60 positions, 40 are jobs that have not been filled over the past few months or were contracts that weren’t renewed. The remaining 20 were considered growth positions in the 2009 budget, but are now being removed.

via City council approves cutting 60 jobs .

– Seven people were laid of from the Greater Toledo Urban League this week after the nonprofit organization lost more than half of its state funding.

via More layoffs for Greater Toledo Urban League – 7/01/09 – Toledo News –

– Milwaukee-based Fullhouse on Tuesday laid off 10 employees, reducing its employment to 85, after losing business from Irving, Texas-based Kimberly-Clark Corp.

via Loss of large contract prompts layoffs at Fullhouse – BizTimes.

– In the meantime, the schools will lose 52 positions, including several teacher layoffs. Howard couldn’t say how many teachers would go, and Superintendent Sidney Smith did not return messages.

via Malden schools lose 52 positions in new budget – Malden – Your Town –

– MIAMI TWP. – The Clermont County Public Library slashed its budget by nearly $2 million Wednesday, with the bulk of that derived by laying off 24 employees.

via Clermont library cuts 24 employees | | Cincinnati.Com.

– ESCONDIDO — Yesterday, 25 Escondido employees became the first casualties of the city’s $6.7 million in budget cuts.

via City cuts include 12 EMTs, 13 others.

– Southeastern Community College in Columbus County has cut twelve positions.

via Twelve cuts made at SECC | WWAY NewsChannel 3 | Wilmington NC News.

– Atlanta officials let go 109 Corrections Department workers Wednesday as part of the city’s budget-balancing plan.

via City cuts 109 jailers amid budget crunch |

– The Montgomery County Court of Common Pleas will cut between eight and 12 positions this month.

via Montgomery County court to cut up to 12 jobs – Dayton Business Journal: .

-Two youth programs run by Bridgeway have been terminated and 26 staff members have been laid-off in the wake of the legislature’s failure to correct the state’s $11.6 billion budget deficit.

US and some Canada Layoff News

gannett2– NEW YORK – Newspaper publisher Gannett Co. plans to cut 1,400 jobs in the next few weeks, about 3 percent of the work force, as it faces a prolonged slump in advertising revenue.

gannett3– July 1 (Bloomberg) — Gannett Co., the largest U.S. newspaper owner, will eliminate about 1,400 publishing jobs by July 9 as it copes with declining advertising and circulation.

via Gannett to Cut About 1,400 Newspaper Jobs by July 9 (Update1) –

ford– Ford Motor will let go 275 Louisville Assembly Plant workers Monday, fewer than previous estimates of between 350 and 380

– Nearly 200 Las Vegas Strip workers are now without a job. The Venetian has laid off 194 workers from several difference departments and positions.

via Venetian lays off nearly 200 workers.

– The rail car maker said yesterday it will cut up to 600 workers over the coming weeks as it reaches the end of its existing order book. The layoff could be relatively short, however, if National Steel Car lands a sizable new order.

– HAMPTON — Telemarketing and communications services company West Corp. plans to cut 176 employees, or about 30 percent of its work force, at its Hampton call center at the end of August, the company confirmed Wednesday.

– The President George Bush Turnpike is now collecting all tolls electronically, a move that cost about 25 employees their jobs.

via Bush Turnpike goes electronic; 25 jobs cut – Dallas Business Journal: .

– “As we better understand the current demands for our products,” late last week 27 Hill-Rom salaried employees in manufacturing and support areas in Batesville were notified their positions have been eliminated

via Batesville Herald Tribune, Batesville, Indiana – 27 jobs lost at Hill-Rom.

– Fabric display manufacturer Moss Inc. will lay off 50 workers at its Belfast facility over the next two months as part of a restructuring plan.

via Moss to trim 50 jobs in Belfast | Mainebiz.

– The Gehl Company announced Wednesday that it is laying off 72 employees, about 30 of which work in its Yankton plant.

via Yankton Press & Dakotan > Community > Gehl Lays Off 30 At Yankton Plant.

-MUNCIE — Ontario Systems, a local software company that laid off 126 employees in December, shed another 35 jobs Wednesday.

via Thirty-five workers lose jobs at Ontario | | The Star Press.

– At the end of the month, more than 100 people from the Allied Automotive Group in Flint will lose their jobs.

via Fallout from troubles in auto industry being felt again in Mid-Michigan – 7/01/09 – Flint News and Saginaw News –

– InFocus Corp. on Wednesday said a previously announced plan to cut its workforce by 30 percent will be more severe than initially expected.

via InFocus plans to cut at least one-third of work force – Portland Business Journal: .

– PIKE COUNTY, Ky. (WSAZ) — More coal miners are out of a job after layoffs at Cam Mining in Pike County on Wednesday.

via Cam Mining Announces Layoffs .

– A nonprofit with offices in St. Peter lays off 17.Scholarship America announced layoffs yesterday of 17 employees company-wide.

via Scholarship American Layoffs |

– HENDERSONVILLE — Printpack’s Hendersonville plant, which makes candy wrappers and other packaging, will lay off 27 workers, a move driven by “a very significant loss of volume on a recent contract.”

via Hendersonville plant layoffs will take effect in August | | Asheville Citizen-Times.

– Most of Maxygen’s R&D operations and personnel will transfer to the new joint venture, the company said, and Maxygen’s corporate and administrative staff will be cut.

via Maxygen plans staff cuts after forming R&D joint venture with Astellas – San Francisco Business Times: .

– FAIRHAVEN – The Acushnet Co. plans to cut 77 jobs at its distribution center and two local golf ball plants over the next 30 days, The Standard Times reported today.

via Fifth round of job cuts at Acushnet Co. – – Providence Business News.

– LOVELAND – Budget cuts will eliminate several staff members at the Loveland Chamber of Commerce.

via Northern Colorado Business Report – Business News Focused on Northern Colorado.

– WICHITA — Big Dog Motorcycles said today that the Wichita-based manufacturer of heavy cruisers laid off “just over 20 workers” on Wednesday.

via Big Dog lays off more than 20 | Business Updates | Wichita Eagle.

Mike: Localities across the country pump millions, if not billions, of taxpayer funds into giving businesses tax breaks for promised jobs that often don’t materialize. The below company likely received millions in tax incentives to promise jobs and is now cutting hundreds. If they did receive tax breaks, it will be interesting to see if they will have to return any funds to the municipality.

– An international company that three years ago came to town promising 600 full- and part-time call center and technical support jobs — or the equivalent of 400 full-time jobs — announced it will cut its staff by half at the end of August.

In a press release, Teleperformance USA said it will lay off 250 employees beginning Aug. 31. The jobs are in classifications called ”exempt” and ”non-exempt,” referring to managerial duties.

via – Call center to cut 250 jobs in Akron .

– PENDLETON – Pendleton Woolen Mills laid off 12 more workers from its Pendleton operation Wednesday.

via Woolen mill lays off 12 workers.

– Konecranes has completed statutory negotiations for job cuts in its heavy lifting business segment in Finland, which will see permanent personnel reductions totalling 41.

Further temporary layoffs are still being finalised and an additional 25 personnel are due to retire in the near future.

via Cranes Today – Konecranes to cut 41 jobs in heavy lifting segment.

– Idaho Timber of Montana plans to close its Whitefish plant, a move that will cost 26 people their jobs. Sixteen workers lost their jobs last week; and the company says the 10 remaining workers will be let go within the next three months.

via News Channel 13 – Idaho Timber shutting its plant in Whitefish.21:06:14

– Two world-renowned orchid researchers, Stig Dahlstrom and Wesley Higgins, were among those laid off, and some volunteers were worried that the Gardens would lose its reputation as a world-class research facility.

via Sarasota: News: IN BRIEF – The Observer Group.21:07:36

– An estimated 115 to 120 employees of Allied Systems Ltd. will be out of a job as General Motors shutters its medium-duty line at the Flint Truck Assembly Plant later this month.

And automotive supplier Android Industries in Flint notified the state last month that it was laying off 90 employees.

via More than 115 employees at Allied Systems Ltd. to lose jobs – Mid-Michigan Business News – Flint, Saginaw, Bay City Business –

– “Everyone was let go, but the people on The Blade know that they may come back if The Blade is coming back,” said the executive, Matthew Bank, of HX Media, which was formed in 2005 by the merger of The Blade and HX Magazine.

via The New York Blade Suspends Publication –

– MASON CITY, Iowa – Susan Raja, general manager for FRC Components, confirmed that the company laid off 13 of it’s 88 person work force on Wednesday. Two of the people were volunteer lay-offs, while 11 were part of the work force reduction.

via FRC Layoffs – – Iowa & Minnesota Together .21:12:30

gannett4– CHICAGO Of the 1,400 layoffs Gannett Co. is ordering at its U.S. Community Publishing Division, the Cincinnati Enquirer and its related digital and print products will absorb about 100, Publisher Margaret Buchanan said in a memo Thursday.

via ‘Cincinnati Enquirer’ Share of Gannett Layoffs: 100 .21:14:05

– Widen Enterprises President Matthew Gonnering on Thursday confirmed the company laid off 15 percent of its work force this week in a market-driven reduction in one part of its business.


– Texas A&M, which won three NCAA team championships this spring, eliminated 17 positions in the athletic department today through early retirements and layoffs.

via College Sports Blog | Sports News | News from Dallas, Texas | Dallas Morning News.21:15:08

– The failing auto industry is taking its toll on a small Arkansas town. Hazen Powder Parts is closing its doors in 60 days, leaving all 80 of its employees without a job.

International Layoff News

– The redundancies would be voluntary, but management at the theatre has not ruled out compulsory redundancy.

via Theatre seeks to make up to 30 staff redundant – The Irish Times – Thu, Jul 02, 2009.

– Thirty-seven positions have been slashed from the workforce of regional carrier Toll United of Whangarei in a process Toll NZ general manager Greg Millar describes as “anguishing”.

via Anguish as Toll slashes 37 jobs – Local News – Northland Northern Advocate.

– According to the company, 239 out of the 335 employees are non-regular workers. Six whose contracts hit the two-year mark last month were fired, and 10 more might lose their jobs this month. Another 25 will lose their jobs by the end of next month.

via First non-regular workers laid off in bill stalemate – INSIDE JoongAng Daily.

– Broadband provider iiNet has confirmed last week’s rumours of it having laid off several employees.

via iiNet lays off several workers – Business news, business advice and information for Australian SMEs | SmartCompany.

– Whilst Blue Star managing director Chris Mitchell (pictured) would not be drawn on exactly how many staff members had been shed in the move, industry sources informed ProPrint that at least 21 production staff had been cut.

via Blue Star cuts more staff as it completes Silverwater site merge – Strategy – Your Business – News – CRN Australia .

austrian-airlines– VIENNA (AP) — Austrian Airlines, the ailing carrier due to be taken over by Germany’s Lufthansa AG, said Thursday it will cut about 1,000 jobs by mid-2010 as part of an effort to boost its competitiveness.

via Ailing Austrian Airlines to cut 1,000 jobs by mid-2010 to boost competitiveness – Los Angeles Times.

– Now, The NYA is awarded contracts for specific projects. Already 12 staff out of 55 have agreed to take voluntary redundancy. It is not clear whether further compulsory redundancies will be needed. Last August, seven employees were made redundant.

via NYA issues redundancies – Childcare and Early Years – Log in to Children & Young People Now.

– A report released by the council this week said it would cut 100 to 300 full time posts by March next year.

via Up to 300 jobs to go at Merton Council (From Your Local Guardian).

– TALKS have started between unions and car parts maker Delphi after the firm announced plans for 71 redundancies at its Kirkby plant.

Hiring News and News You Can Use

– Manufacturing conglomerate W.L. Gore & Associates plans to hire engineers, production and R&D workers for its medical device division in north Phoenix.

via W.L. Gore to hire engineering, production workers – Phoenix Business Journal: .

– Dallas-based ACS will add 300 jobs at a relocated site within Port San Antonio next year.

Matt Davies

Matt Davies


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