Mike: Good day to all. The hopeful glow produced by dreamy stimulus predictions of immediate job growth and recession’s end is fading into the hangover of reality. The punch bowl has been emptied, the lights have been brightened and it’s time to stagger out the door to the sunlight and face the music.
This economic problem was at least 10 years in the making, so the cure is going to take longer than six months, but most Americans want immediate gratification, such as they had during the NAQDAQ and housing bubbles. Purging the excesses from this fractured financial system is going to take years, not months. I’ll post some reasons why this stimulus is going to be short on results when I have time later this day, but here is an excellent read in the meantime:
If your mind was not made up before, hopefully the above has convinced you what Austrian economists already know No Amount of Stimulus Can Possibly Work. via Mish’s Global Economic Trend Analysis: Battle Lines Form Over “Son of Stimulus“.
Administration officials say a job market recovery usually lags behind the economic recovery itself. Indeed, most forecasters had predicted that unemployment was likely to keep rising through the end of 2009 and would not start to edge down until 2010.
“People know that problems of this seriousness cannot be turned around in six months or nine months,” Mr. Summers said. “One of the president’s strengths is his extraordinary candor. The president has been honest with the American people about the enormity of the challenge and the amount of time it will take to turn things around.”
But political pressures may not give the administration two years to show that its plan is working, especially if Democrats in Congress begin to conclude that continued bad economic news is putting them at risk of losing seats in the 2010 midterm elections.
Mike: The thought of a quick recovery due to a stimulus program and the green shoots mantra are fading.
– Its preliminary index of confidence for July fell to a reading of 64.6 from the final reading for June of 70.8.
July’s preliminary reading was well below economists’ median forecast for 70.5.
The index of consumer expectations fell to 60.9 from June’s final reading of 69.2.
The index of current economic conditions slipped to 70.4 from June’s final reading of 73.2.
“Consumers concluded that the economic downturn would last longer and their personal finances would not recover as quickly as they had previously expected,” the Reuters/University of Michigan Surveys of Consumers said in a statement.
- Canada Pares Less Jobs Than Expected, Joblessness at 11-Yr High
- 550 jobs in jeopardy at Montreal refinery
- Silver Line closing Fall River plant today (287 job losses)
- West Penn Allegheny eliminates 185 jobs
- AIG asks gov’t to approve bonus payments
- Cisco cutting up to 2,000 jobs-analyst
- OSI Pharmaceuticals Cuts Boulder Plant
- Advanta Will Cut 50% of Jobs, Leaving Fewer Than 200
- Teleperformance plans to cut 218 jobs in Dublin
- Hundreds Lose Jobs (370) In Hastings Plant Closing
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
-NEW YORK, July 10 (Reuters) – Cisco Systems Inc (CSCO.O) is in the process of cutting between 1,500 and 2,000 jobs. according to an report from Thomas Weisel analyst Hasan Imam.
A Cisco representative was not immediately available to comment on the report, which also said that the company could exceed its plan to cut annual costs by $1 billion with job cuts.
– As noted in Continuing Claims Soar by 159,000 to New Record the record continuing claims number is dramatically understated by over 2.5 million. Charts of what is really happening are shown below but first let’s recap the data as reported by the Department of Labor.
– After its bonus payments ignited a firestorm of criticism earlier this year, American International Group Inc. is asking the federal government to weigh in on the insurer’s plan to resume paying millions in promised retention incentives next week, according to media reports….
Government aid to AIG totals about $180 billion.
– Employment fell by 7,400, while economists surveyed by Bloomberg predicted a drop of 35,000. The unemployment rate also rose less than expected, to 8.6 percent from 8.4 percent in May, the highest since February 1998, Statistics Canada said today. Economists predicted the jobless rate would be 8.7 percent.
The report is the fourth this week to suggest a recession that began at the end of last year is easing. Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney have said the job market would continue to worsen this year because companies are reluctant to expand again.
– BEIJING (AP) — China’s exports and imports fell again in June but declines were less severe than in May, data showed Friday, adding to signs the world’s third-largest economy is recovering from its slump.
Exports fell 21.4 percent in June from a year earlier, the government’s Xinhua News Agency reported, citing the Chinese customs agency. That was an improvement over May’s record 26.4 percent decline.
China’s trade collapsed in late 2008 as the global consumer demand plunged, wiping out millions of factory jobs. Analysts say a full-fledged recovery will have to wait until China’s key U.S. and European export markets rebound.
“Overseas demand still hasn’t recovered yet,” said Hu Xiaoyue, an economist at Shanghai Securities. “The role of exports in economic growth will continue to weaken.”
Sprint said no jobs will leave the U.S. as a result of the deal, and no layoffs “are currently contemplated” as a result of the agreement.
Mike: NY’s dysfunctional senate finally returned to work after a month of bickering, but the dysfunction remains.
– On July 9, the other Democrat—Sen. Pedro Espada Jr. (D-Bronx)–announced that he was leaving the Republican voting bloc. Espada was appointed Senate majority leader, the second-most-powerful person in the chamber.
– Santa Cruz County this week sent out layoff notices to 50 employees.
The bulk of the notices are headed to personnel in the county’s Health Services Agency and Human Services Department, which administers the region’s state-required safety net for the sick, poor and elderly.
– Teacher assistants will be laid off; up to a $250,000 savings, bringing the deficit to $166,000
– MT. VERNON — Eight out of 16 employees of the Jefferson County Health Department have been issued layoff notices, a direct result of the financial crisis affecting Illinois.
– Officials said 20 Belmont County Job and Family Service workers will be laid off in the coming weeks.
-In a release issued by Bainbridge City Manager Chris Hobby, the City has laid off 9 city employees.
via Bainbridge News Budget Crunch Forces City Layoff.18:06:06
– Should the refinery close, about 550 well-paying jobs will be wiped out, along with work for thousands of contractors and suppliers, said
– New York-based OSI Pharmaceuticals, a developer of oncology products, said this week that it is planning to shut its Boulder, Colorado operations later this year, as it consolidates its operations into a location in Westchester County, New York. The firm, which is also closing two facilities elsewhere in New York, plus an operation in New Jersey, said that approximately 350 employees will be affected across its four locations.
– FALL RIVER – Silver Line Building Products LLC is ending manufacturing at its 200,000-square-foot factory in Fall River today, laying off 287 workers and leaving in place only a few dozen office staffers, The Herald News reported today.
– West Penn Allegheny Health System is eliminating 185 full-time positions across all of its hospitals as well as in corporate services, officials at the region’s second largest hospital network said Thursday.
Mike: It’s going to be a difficult day at newspaper newsrooms throughout the country as the Gannett layoffs take effect.
– The Lansing State Journal has let go at least nine employees, including two executives, as part of a new round of layoffs ordered by its parent company, Gannett, sources confirm.
via LSJ layoff news.
– The Tennessean today has eliminated the jobs of six editorial employees and 25 other staffers. Bob Faricy, vice president of market development for the newspaper, confirmed the numbers late this afternoon.
– The Courier-Journal has eliminated 44 jobs, or 7 percent of its work force, as part of a broader reduction across Gannett Co. Inc.’s newspaper division.
– TRENTON — Gannett Co. said it is eliminating 106 full-time and 19 part-time positions at its six New Jersey newspapers due to the economic recession.
– The Arizona Republic on Thursday eliminated about 100 positions, including 20 newsroom jobs, as part of cost-cutting initiatives to reduce the impact of losses in advertising revenue.
– The News-Press eliminated 30 jobs, or about 6.5 percent of its work force, this week.
Jobs were cut from throughout the organization, including distribution, production, advertising and news positions. Some employees were laid off; others were offered alternative positions.
– The Jackson Sun has eliminated 15 full-time and six part-time positions to offset declines in revenue due to difficult economic conditions.
– The Democrat and Chronicle announced Thursday that it eliminated 64 positions in a cost-cutting move related to the ongoing economic situation.
– Harvey Hill, publisher and owner of the paper, told employees Thursday afternoon that he would file for Chapter 7 bankruptcy today. Employees were told to turn in their keys at the end of their shift Thursday.
– Officials from Ameritas, the insurance company headquartered in Lincoln, announced Wednesday that three positions will be cut from the Lincoln office, part of 21 job cuts nationally at Ameritas and its affiliated Unifi Cos.
– – Spokesman Art Scheskie tells NewsChannel 8 six jobs in the enterprise services department were eliminated as part of global job cuts by Trane’s parent company Ingersoll Rand.
– LITTLE ROCK, Ark. (AP) — Verizon Wireless has laid off 50 workers in Arkansas who were part of the former Alltel Corp., which Verizon acquired in January.
– International Game Technology, the world’s largest slot machine producer, will lay off 55 more workers at its Reno headquarters this week as it continues to adjust during the recession, a company spokesman said Thursday.
– According to paperwork filed with the Department of Workforce Development, Wick Building Systems plans to lay off 37 hourly positions at its plant in Marshfield.
– According to a release from the Des Moines Register, 36 employees of the newspaper have been laid off.
– Twenty-four Mansfield division employees learned they lost their jobs early Thursday — and not just to temporary layoffs.
– Eckert Seamans Cherin & Mellott laid off 90 temporary lawyers from its document coding center Downtown because of insufficient work volumes, the head of the Downtown firm said Thursday.
– Advanta will have fewer than 200 employees after the reduction, which will affect all departments and result in expenses of $8.5 million to $9.5 million, the Spring House, Pennsylvania-based company said today in a regulatory filing.
– Call-center operator Teleperformance USA is warning Ohio officials it could eliminate 218 jobs at its Dublin center next month, the result of a customer’s reduction in business.
– NCM, a manufacturer of air-filtration components for automobiles and construction vehicles, is closing after nearly 50 years in Grundy Center.
– The Armour-Eckrich meat plant in Hastings will close July 17, putting 370 people out of work. The company cited market conditions.
– Darryll Fortune, global director of public relations for Johnson Controls, said slow market conditions are to blame for the reduction.
– HUNTINGTON, W.Va. (WSAZ) — More than 100 people are losing their jobs at a Huntington telemarketing firm.
via Sitel Cutting More Than 100 Jobs in Huntington .18:01:38
– WCPO-TV (Channel 9) will lose five employees when its parent company, Scripps Howard Broadcasting Company, centralizes two of its departments.
via WCPO to shed jobs | Cincinnati.com | Cincinnati.Com.18:02:58
– JACKSON, Miss. — The University of Mississippi Medical Center has laid off 15 workers at its facilities in Holmes County.
– Nearly 400 jobs at New Zealand Post Group have fallen victim to the recession.
– The 26 staff have been told that their present roles no longer exist and they will have to apply for 19 one-year, fixed-term contracts, three of which are reserved for nurses.
– The county’s police authority, which sets the police budget, will now have to return £1.6 million to taxpayers, at a cost of £1.2 million and 50 frontline police jobs.
– However, the college announced they were to cut 12 full time posts just before the semester ended. Loss of the 12 full time equivalent posts which are under threat, would mean 17 staff losing their jobs
– More than 50 staff at Infoteam International Services Ltd’s Plympton call centre have been told to expect redundancies because a firm, which has not been named, wants to move ‘certain functions’ to a cheaper alternative.
– About fifty workers at a Stonehouse engineering factory have been told today that they are being made redundant.
Stonehouse, Gloucestershire firm sheds more jobs.-
– MEXICO CITY, July 10 (Reuters) – General Motors Mexico will slash 300 more jobs as it reels from a sharp decline in U.S. and Mexican demand, but the U.S. automaker’s local head said the company did not expect further plant shutdowns.
– Ukrainian President Viktor Yushchenko has approved an upper limit of 530 on the number of employees working at the Presidential Secretariat.
– Austrian car interiors maker Eybl will cut 230 jobs at all of its four Hungarian plants, the German vehicle upholstery maker announced. Eybl Hungária is currently under liquidation and will also move to single-shift production.
– Less than two weeks after the grand opening of a call center in Saraland, Ryla Inc. officials announced plans Thursday to hold job fairs aimed at hiring 600 new employees.
– Bravo Health Inc. said it will expand its office in East Baltimore and bring more than 200 additional jobs to the city.
– ORLANDO – Hilton Orlando has 650 jobs open for their three new hotels opening this year.
– CHARLOTTE, N.C. — Up to 180 teachers and others laid off from Charlotte-Mecklenburg Schools could get their jobs back.
Mike: Have a great weekend. I may have a post or two this weekend…………….