Mike: The holiday weekend is behind us and a full week of unemployment news begins.

This morning I was browsing the news and came across these little stories that got my head a shakin’.

“A second stimulus should be the one they should have done the first time, something that is relatively fast and thoughtful,” said Phillip Swagel, a professor at Georgetown University’s McDonough School of Business. Mr. Swagel, a former Treasury assistant secretary for economic policy under President George W. Bush, said a more-effective package could include more assistance to struggling state and local governments and personal tax cuts.

“This was supposed to be about jobs, jobs, and jobs. And the fact is, it turned into nothing more than spending, spending, and more spending on a lot of big government bureaucracy,” House Minority Leader John Boehner of Ohio said on “Fox News Sunday.”

Many Democrats, too, said they’re disappointed with the recovery program so far but, for now at least, are resisting calls for a second package. “I don’t think anybody can honestly say that we’re satisfied with the results so far of the stimulus,” House Majority Leader Steny Hoyer (D., Md.) said on “Fox News Sunday.” But he said it was too soon to push for more. “We certainly want to see how this develops over the next few months.”

via Calls Grow to Increase Stimulus Spending – WSJ.com.

“We misread how bad the economy was, but we are now only about 120 days into the recovery package,” Biden said on ABC’s “This Week.” “The truth of the matter was, no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having distributed the bulk of the money.”

via Biden Acknowledges Administration ‘Misread’ The Economy | 44 | washingtonpost.com.

My first reaction is that both parties, starting at the top, are absolutely clueless about the extent of joblessness, it’s causes and cures. I’m not here to say that I have all the answers, but when I see our so-called leaders bickering, sniping and pointing fingers instead of properly reviewing the unemployment problem and taking focused action, I think that we are headed for a worsening unemployment situation. At least Biden tells it like it is, instead of hiding behind the clouds of lies, deception, and false hope.

The Republicans, who were in charge of the economy for most of the past decade, have Boehner complaining about the stimulus although the Republicans diminished the size of the stimulus by cutting back Obama’s initial plan and demanding billions in tax breaks. The initial recommendation was for a $1 trillion stimulus that was reduced to $789 billion, which included over $200 billion in Republican demanded tax breaks. Those tax breaks aren’t job creators and aren’t likely to be of any value until next year at the earliest. Sure, those tax breaks included an small income tax cut, which averages $13 a week. That $13 has been eaten up just in  higher gas prices, so there was no stimulative affect to that tax break. How about an imcome tax holiday for six months or eliminating the income tax on unemployment benefits? No, that’s too easy and it doesn’t play to their base. The Republicans have failed the economy for the past ten years, so they have little to complain about.

The Democrats, for their part, are just as clueless, as can be observed by Biden’s “We misread how bad the economy was, but we are now only about 120 days into the recovery package”. While their stimulus package was touted for its job creation, much is geared to long-range projects like high speed rail, green jobs, etc. While there may be some value to those goals, jobs won’t be created quickly or in sufficient numbers to make much of a difference in the unemployment rate. Infrastructure funding will be helpful in the long-term, but how many people are going to get road work jobs? Do you think the laid-off nurse, teacher, auto worker, and textile worker are going to jump on a backhoe, crane or cement truck and build roads? Not likely. I have read that many road repair projects were eliminated by states and municipalities due to budget constraints, so the road funding from the stimulus is in many cases just picking up those cancelled projects, so road work companies aren’t going to add hundreds of thousands to their payrolls.

With unemployment increasing, along with foreclosures and bankruptcies, people are going to be cutting back on spending and trying to save what they can for upcoming rainy days, and in many cases survival. Neither the Republicans nor Democrats did what was necessary and give each and every household sufficient money to stimulate the economy. In fact neither party proposed eliminating the income tax on unemployment benefits, while at the same time they turned their heads when Goldman Sachs presented their executives with record bonuses, which were accomplished with help from taxpayer funded bailouts. Fair? No. But the parties we have to chose from are both in the pockets of the big financial firms and they could care less about the struggles of the worker, since they get their campaign funds from the big dogs. Both parties claim to be the party of the little guy, but are in fact agents of the rich and powerful.

I don’t know how the Obama administration and their financial wizards misread the economy, when smart, talented and observant people like those at the following sites were generally quite aware of the stimulus shortfalls:
Dr. Robert McHugh (www.technicalindicatorindex.com) states the following in his weekly letter to subscribers:
“The problem is, there have been trillions of dollars printed and spent since last autumn, but none of it to speak of has landed in the hands of consumers, no major income tax rebates, no new meaningful jobs from infrastructure projects, no repeal of property taxes, no health insurance reform such as allowing a cheap “catastrophic only” insurance protection option to families for $200 a month. Has anyone seen anything tangible result from Central Planner intervention? Bridges getting rebuilt? New highways? New supertracks for high speed trains? Energy technology? New parks? Jobs programs? It has all gone to large corporations, to government purchases of corporations.”
I completely agree with McHugh’s take on the matter and I if our clueless leaders don’t get a handle on this growing problem, they will only prolong the pain. Write your representatives today and demand that they change course and funnel funds to you and not just the corrupt corporations: http://www.congress.org/congressorg/directory/congdir.tt. Without your pressure, the parties (we need more than two, by the way, but that’s a different post) will continue to take your money and give it to those same financial frauds that deserve it least.

To be fair, I’ll point you to a couple recession is ending reports that refute the more dire predictions of many who have called this financial mess so far and I’ll leave it to you to decide where things are headed in the near term:

– “We’ll definitely see the end of this recession this summer,” ECRI managing director Lakshman Achuthan said Wednesday. “As unique and unprecedented as this recession has been, the transition to recovery is showing up in a textbook way in the leading indicator charts.”

via ‘We’ll definitely see the end of this recession this summer’ – pressofAtlanticCity.com : Business.

On June 1 we pointed to three clear markers that signified the beginning of US economic recovery. As we enter July more and more economists are also reflecting on the signs that the US economy as a whole is returning to growth.

via Citizen Economists » More Economists Point to Recovery Signs.

-U.S. manufacturing shrank at the slowest rate in 10 months in June, an industry group said, adding to a raft of data Wednesday suggesting the recession is bottoming out.

Thanks for listening and onto today’s news………………



Larger layoff announcements and important economic reports:

Navigation links to today’s stories:

Microsoft/Google/IBM and other Rumors & News

apple1– But last week, Mr. Jobs returned to work on a part-time basis, precisely when he said he would. Experts with only a general knowledge of his treatment suggest his prognosis is good.

General Economic News

– WASHINGTON (MarketWatch) — The service sectors of the U.S. economy contracted at a slower pace in June, the Institute for Supply Management reported Monday. The ISM nonmanufacturing index rose to 47.0% from 44.0% in May. The decline was better than expected. Economists were looking the index to rise to 46.0%.

– JEFFERSON CITY, Mo. (AP) — With its IOUs and plans to close state offices three days a month, California gets all the attention as lawmakers fight to write a budget set off balance by a $26.3 billion deficit.

But the dozens of states that made spending cuts, tapped into reserves or relied on federal stimulus funds to patch together budgets that took effect this past week are hardly free from worry. Many of those spending plans are based on tax revenue projections that have been wrong throughout the recession — and may be unreliable again.

via The Associated Press: Missed revenue forecasts pose more woes for states.

Matt Davies

Matt Davies

Government Layoff News

– With states facing a $121 billion shortfall in the next fiscal year, a growing number of them have turned to squeezing their workforce for savings, and effects are being felt, both great and small.

In Hawaii, some criminal trials will likely have to be rescheduled because public defenders are being furloughed — or forced to take unpaid days off — three Fridays a month. In New Jersey, about 5,000 parolees went unmonitored for a day in May and June as their parole officers were forced to stay home.

via Maine among 21 states to use furloughs.

– SACRAMENTO—Sacramento firefighters have agreed to freeze their salaries for two and a half years, averting layoffs for at least a year.

via Sacramento firefighters agree to salary freeze – San Jose Mercury News .

– The Troy-Miami County Public Library announced Monday it will lay off six workers, reduce employee hours and modify operations as it faces a budgetary drop of more than $770,000.

via Troy/Miami library to eliminate six jobs – Dayton Business Journal: .21:19:13

– CITY HALL — As a part of the shift in the city’s Park Ranger program, six part-time rangers who are at-will employees of the city, will be terminated as of July 15, city officials said Monday.

via Glendale News Press > Politics.21:21:23

– TROY — Hoping to keep up with funding cuts, the Troy-Miami County Public Library will lay off six staff members, reduce hours for most others, park its bookmobile, increase fines and close one day per week.

US and some Canada Layoff News

-The company, which said it would cut 350 jobs, added that JPMorgan Chase Bank has informed the company that its $10 million line of credit was not available to be drawn down upon until the regulatory matter was resolved.

– SHELBYVILLE, Ind. (AP) — Meridian Automotive Systems is idling a central Indiana factory, putting 295 people out of work.

The company told city officials on Thursday that it was closing the Shelbyville plant for an indefinite period. The announcement came less than month after Meridian announced a planned layoff of 198 people at the plant in stages over the summer.

via The Associated Press: Auto parts maker shutting down Indiana plant.

– GRAND BLANC TOWNSHIP, Michigan — Genesys Regional Medical Center is moving forward with plans to lay off than half of the licensed practicing nurses on staff — and replace them with nursing assistants — unless their union can win a last minute reprieve, reports WNEM (Channel 5). According to the report, 54 nurses will receive pink slips next week.

via Genesys moving forward with layoff plans for nurses – Flint News – The Latest News, Blogs, Photos & Videos – MLive.com .

– The company wants 25 workers to voluntarily take up to three months off because business has yet to pick up.

via Pa.’s Channellock looking to voluntary layoffs | AP | 07/03/2009.

– Credit-card giant Discover Financial Services LLC has told state officials it plans to begin cutting 55 jobs at its New Albany call center on Tuesday.

via Discover Financial cutting 55 jobs – Business First of Columbus: .

newspaper– The owner of most of the Bay Area’s newspapers said Friday it would lay off another 18 journalists in the East Bay this summer.

via More Bay Area journalists to lose jobs – San Francisco Business Times:

– Sanofi-Aventis’ restructuring plans may not include forced layoffs in Europe, but about 60 workers in the U.S. were told they’d be out of work by year’s end, BNet Pharma reports, and these weren’t “voluntary separations.” Report

via Sanofi tells 60 U.S. workers they’re out of jobs; Hong Kong finds Tamiflu-resistant case; – FiercePharma.

– Western Corporate Federal Credit Union eliminated 30 San Dimas, Calif.-based employees last week, adding to the 60 branch processing staff the NCUA had previously announced would be let go over the next 12 months. WesCorp’s staff will drop by roughly 22% from January 2008 to mid-2010.

via WesCorp Eliminates Jobs .14:50:08

– Sunoco announced Monday they will permanently shut down the ethylene unit at their Marcus Hook Refinery that was damaged in an explosion and fire in May, and lay off 40-50 workers in the process.

via Sunoco to shut down ethylene unit, ax 40-50 jobs – The Delaware County Daily Times : Serving Delaware County, PA(DelcoTimes.com).14:52:23

sun1– Sun Microsystems recently dismissed 61 employees in Dallas as part of a broader restructuring, according to a company filing with the Texas Workforce Commission.

via Sun Microsystems lays off 61 in Dallas – Dallas Business Journal: .14:53:08

gavel1-In what’s being described as an “administrative reorganization” unrelated to the recession, Osler Hoskin & Harcourt LLP has slashed 23 members of its support staff.

via Law Times – Monday, July 6, 2009.14:58:03

– Wyle Laboratories is cutting 67 Austin high-tech jobs at the end of the week, but most will move over to another company that won a government contract Wyle previously held.

via Wyle cuts Austin jobs, but workers get new employer | Statesman Business Blog.14:59:38

– MYRTLE BEACH — Steel mill union officials last week rejected pay cuts and other concessions that mill owners had said could help stave off the indefinite shutdown planned for July 12.

via Steel mill set to shut down indefinitely July 12 – The Post and Courier.15:03:29

medtronic– Medtronic Inc., VML Co. LLC and Shelby County government all filed letters notifying the department that they will lay off a sum of 105 workers.

via 105 Shelby County workers to lose jobs – Memphis Business Journal: .16:08:25

– East Syracuse (WSYR-TV) – Twenty-five people were notified last week that they’re going to be laid off from The Bristol-Myers Squibb facility in East Syracuse.

via 25 employees laid off at Bristol-Myers Squibb – NewsChannel 9 WSYR .16:09:32

– ProHealth Care, which operates Waukesha Memorial Hospital and Oconomowoc Memorial Hospital, announced Monday it would eliminate 50 positions.

via ProHealth Care to cut 50 jobs – The Business Journal of Milwaukee: .21:17:34

– In a restructuring announced Monday, Naperville-based communications equipment manufacturer Tellabs Inc. disclosed it will lay off about 150 more employees.

via Tellabs-layoffs-tlab- — chicagotribune.com.21:18:18

hospital-Providence Sacred Heart Medical Center has laid off 33 employees and reassigned 44 others as part of a broad budget-cutting effort at the hospital.

via Providence lays off 33 at Sacred Heart | Spokesman.com | Jul 6, 2009.21:22:32

-Last month, about 40 employees were given temporary layoff notices, reducing the workforce to about 20 at present, according to Tanja MacIsaac, office manager for Modus Modular Structures in Swift Current.

via Modus modular in Swift Current lays off staff .21:23:50

– World Vision has laid off about 50 employees, between 4 and 5 percent of its U.S. workforce, saying a decrease in cash donations in the first half of 2009 has forced it to make some painful cost cuts.

via The Business of Giving | World Vision lays off more than 4 percent of U.S. staff | Seattle Times Newspaper.21:24:29

newspaper1– TORONTO — The Toronto Star says it’s cutting six full-time and 21 part-time positions at its classified department as sales for the section decline.

International Layoff News

basf– FRANKFURT, July 6 (Reuters) – BASF (BASF.DE) plans to cut 3,700 jobs as part of the integration of Swiss rival Ciba and may sell or close as many as 23 of Ciba’s 55 sites, it said on Monday.

via UPDATE 1-BASF to cut 3,700 jobs as part of Ciba takover | Industries | Energy | Reuters .

oracle– Oracle plans to lay off up to 1,000 workers in Europe, despite strong revenue growth compared with other enterprise software suppliers.

via Oracle to cut 1,000 jobs in Europe | 6 Jul 2009 | ComputerWeekly.com.

– This morning Bookseller reported that Penguin UK will lay-off around 100 people in the publisher’s London offices. As the publisher restructures, Penguin UK managing director Helen Fraser will retire, and be replaced by Tom Weldon as deputy chief executive.

via Around 100 Layoffs at Penguin UK – mediabistro.com: GalleyCat.

– The National Union of Journalists has condemned Trinity Mirror’s plan to make a further “savage” round of 66 job cuts in the north-east of England.

via Trinity Mirror plans 66 more job cuts in north-east England | Media | guardian.co.uk .

– The company said it will cut 26 jobs, mainly in drug discovery, from its current workforce of 82.

Hiring News and News You Can Use

– – STEP 1. Categorize your spending: You can’t budget if you don’t know how you’re spending your money. Pull together bank and credit card statements from the last three months, said Barbara McMahon, a financial adviser in Kansas City, Mo. Lump the line items into broad categories, such as food, housing, debt repayment, savings and entertainment.

via Budgeting in 6 easy steps — chicagotribune.com.

– TORONTO — Video game developer Ubisoft is coming to Toronto as part of a deal with the Ontario government that will create 800 jobs over 10 years.

via The Canadian Press: Video game maker Ubisoft to set up in Toronto, creating 800 jobs over 10 years.

– Wal-Mart is seeking 200 people to work at a new store opening in the fall in Tempe, the company said Monday.

via Wal-Mart hiring in Gilbert for Tempe store | Tempe News | eastvalleytribune.com.

– The U.S. Census Bureau in October will open an office in Gardiner that will employ 1,000 part-timers, according to the Kennebec Journal.

Mike: Till Tuesday……………

David Horsey

David Horsey


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