Jobless claims fall to 522,000 – Continuing claims plunge due to auto closures – Gov. Rick Perry’s failures result in 1000s of Texans losing unemployment benefits – Harley-Davidson to cut 1000 more – Lloyds to cut another 1200 – McGraw-Hill chops 550 – Chicago: 400 laid off – Cisco dumping up to 700
The number of Americans filing claims for unemployment benefits fell last week to the lowest level since January, depressed by shifts in the timing of auto plant shutdowns.
Initial jobless claims dropped by 47,000 to 522,000, lower than forecast, in the week ended July 11, from a revised 569,000 the prior week, the Labor Department said today in Washington. The number of people collecting unemployment insurance plunged by a record 642,000, also reflecting seasonal issues surrounding the closures at carmakers.
– NOTE: The seasonally adjusted weekly claims numbers are being impacted by the layoffs in the automobile industry and other manufacturing sectors. Usually companies cut back production in the summer, and the numbers are adjusted for that pattern – but this year the companies cut back much earlier. This distortion is expected to last for another week or two.
AUSTIN – As many as 82,000 unemployed Texans won’t receive an immediate 13-week extension of benefits as they expected because of federal rules and state computer problems, the Texas Workforce Commission said Tuesday.
In addition, the state unemployment insurance system is straining under the weight of the crumbling economy: Texas will have to borrow $643 million from the federal government to cover claims through Oct. 1, a commission official said. And the system for processing applications is overwhelmed. On Monday alone, more than 150,000 callers couldn’t get through to the commission, an official said.
Commission spokeswoman Ann Hatchitt said the extended benefits will be delayed “a couple of months, at least.” She blamed “complex federal requirements” after the Legislature hastily passed a law to take advantage of new benefits included in the federal economic stimulus bill that Congress enacted in February.
-Texas has been on a troubling path toward a trust fund deficit for months as paid claims have more than doubled since 2008. The state’s climbing jobless rate sparked a debate in the recent legislative session over Gov. Rick Perry’s decision to reject $555 million in unemployment stimulus money, which he said would impose a long-term tax burden on Texas employers.
Commission spokeswoman Ann Hatchitt said state officials have been scrambling to implement a 13-week extension but have been delayed by complex federal regulations and computer problems, meaning that the added assistance will be unavailable to thousands of people.
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– The Univeristy at Albany’s College of Nanoscale Science and Engineering will be the site of a new computer-chip packaging center that is expected to create 200 jobs.
The center is part of a state initiative with IBM Corp. originally announced last year.
Current Indicators Still Suggest Weakness
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from -2.2 in June to -7.5 this month. The index has been negative for 19 of the past 20 months, a span that corresponds to the current recession (see Chart). Firms reporting decreases in activity (31 percent) slightly outnumbered those reporting increases (23 percent). Other broad indicators suggest weakness, although recent declines in new orders may be stabilizing. The current new orders index edged three points higher, to -2.2, its highest reading in 10 months. However, the current shipments index declined 12 points. Indexes for delivery times and unfilled orders, which have remained negative for 15 consecutive months, suggest continued weakness.
Six-Month Indicators Show Continued Improvement
Broad indicators of future activity fell somewhat from their six-year highs last month, but they continue to suggest that firms are expecting improved conditions later this year. The future general activity index remained positive for the seventh consecutive month, but decreased from 60.1 in June to 51.9 this month.
Update: The NUMMI auto factory in Fremont must navigate plenty of perils if it is to survive. Yet despite the hazards, rescue routes beckon that could retain the Japanese automaker.
For a quarter-century, the New United Motor Manufacturing Inc. vehicle plant, which employs 4,700 workers, was a joint venture between General Motors and Toyota. But the NUMMI venture now circles the fringes of a whirlpool. GM, while working through bankruptcy, abandoned NUMMI, and Toyota says GM’s departure has forced it to explore all options, ranging from going it alone to shutting the factory.
The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released Thursday by foreclosure listing service RealtyTrac Inc.
– VICTORVILLE • A total of 47 city employees were handed layoff notices Wednesday, in the first round of cutbacks that will help Victorville begin to close a $13.4 million budget deficit.
DENVER — The government-owned company that employs federal prison inmates is closing some factory operations at 14 prisons and downsizing operations at four more amid multimillion-dollar losses, according to a copy of a memo provided by a prison union official.
The memo didn’t say how many staff jobs were affected. Bureau representatives didn’t return after-hours phone messages.
– The Rapides Parish School District will cut 43 positions as part of a belt-tightening plan designed to avert a budget deficit this year.
Mike: I was under the impression that unions were all for one and one for all, but that seems have have taken a turn to one for me and too bad for you. How do you look your union brother in the eye and say I voted for you to lose your job, since I didn’t want to take any type of salary cut. I, and most Americans (59%), support unions, but activities like the onesin Chicago place a tarnish on those once proud unions.
– Mayor Richard Daley’s administration today laid off more than 400 city workers after two unions did not agree to cost-cutting measures before a 5 p.m. deadline.
“Unfortunately, it’s clear there won’t be an agreement,” said mayoral spokeswoman Jacquelyn Heard. “Today is their last day on the city payroll.”
Jack Hurley, recording secretary at Teamsters Local 726, which will lose 141 drivers, said it was “unfortunate that it had to come to this.”
“We understand there’s economic problems with the city and they had to do what they had to do, but our members spoke loud and clear,” Hurley said.”The members spoke and we went along with their wishes and that’s how it has to be.”
Americans remain broadly supportive of labor unions, as they have been over the past seven decades, including a 59% approval rating for unions in Gallup’s most recent update from August.
– Allentown Mayor Ed Pawlowski made good on his threat Wednesday and laid off 39 employees from the city’s largest union , the largest jobs cut since 1994.
– STRONGSVILLE A total of 19 Strongsville City School District teachers, many on the elementary level, were cut Monday night due to the implementation of a reduction of force by the school board.
– Harley-Davidson Inc. says it is cutting 1,000 more employees as its second-quarter profit sank 91% on falling motorcycle sales……..
In a news release Thursday, the company said it will implement a further reduction this year of approximately 700 positions in the hourly production workforce and will reduce its non-production workforce, primarily salaried employees, by 300 additional positions.
– Digital River Inc. said Wednesday it will eliminate 120 positions worldwide as part of a plan to outsource its customer-service operations and re-align its business to focus growing markets. But it’s also adding jobs in Minnesota.
– Westminster car parts manufacturer Marada Industries will shut its doors by July 2010, succumbing to the auto industry’s widespread struggles.
The company release said roughly 150 employees will be affected, making it one of Carroll’s larger employers.
– The slumping housing market is forcing Dashwood Industries in Centralia to slash 20 jobs in already hard-hit Huron County.
– NEW YORK (AP) — McGraw-Hill Cos., hit by declines in its education, financial services and media properties, said Thursday it has cut 550 jobs.
– Diamond Power officials announced the workforce reduction of 35 salaried employees and 32 hourly manufacturing employees.
– Romero House, short $20,000 on the necessary funds to pay their employees into next month, will be laying off all of their eight paid staff members on August 7.
– CHARLOTTESVILLE, Va. (AP) â€” A reorganization of the Thomas Jefferson Foundation has resulted in three full-time workers at Monticello being laid off and another being offered part-time work.
– In response to the global recession, Cisco Systems is slashing as many as 700 jobs at its San Jose campus, a source close to the company’s leadership said Thursday.
– Lloyds Banking Group is to cut a further 1,200 jobs, taking the total job losses for the year to 8,200.
The jobs will mostly go in IT support and in insurance services following the merger of its Scottish Widows and Clerical Medical businesses.
– The ‘Bord Snip’ report has recommended axing 17,358 jobs across the public sector, including eliminating some 6,000 jobs in the Department of Health and Children and 7,000 in the Department of Education.
– A Lufthansa spokeswoman, Amelie Schwierholz, said the airline expects to eliminate about 400 jobs in total, though mass firings are not being considered “at present.”
– Two hundred and fifty jobs are to go at Anglesey Aluminium which has failed to reach a new power deal for cheap electricity.
-The NEC Group has confirmed that 82 job cuts will be made – significantly fewer than it had expected.
In April Paul Thandi, chief executive of The NEC Group, announced that more than 100 redundancies could be made across the company’s four Birmingham venues following a 90-day consultation.
via Meetpie.com .
Nissan is set to make its Wearside plant the biggest electric car factory in Europe – securing thousands of jobs.
-More than 50 call centre staff at Infoteam International Services’ Plymouth site have been told they face the axe following the loss of a major contract.
– It is believed eight tutors at Hereward College, in Bramston Crescent, Tile Hill, will be out of work following a restructure at the college, which caters for students with special needs.
– BT will bring at least 2,000 call-centre jobs in India back to Britain as it prepares to close about half its customer service operation on the sub-continent, it emerged yesterday.
LONDON – Associated Newspapers is to bring forward the shutdown of Teletext’s analogue TV services to January 2010 rather than 2012 as previously envisaged, putting around 70 staff at risk of redundancy.
-State grants and loans of about $7.5 million will help a solar industry company bring 375 new jobs to the area within the next two to three years.
State Reps. Deberah Kula, D-North Union Township, and Ted Harhai, D-Monessen, have announced Solar Power Industries (SPI) in Rostraver Township will receive $7.5 million in matching grants and loans to manufacture solar technology systems at the Sony plant site in New Stanton.
Mike: I have to admire, Bob!
– But this time, Bob laid himself off–not because he wanted to or was quite ready to retire, but because he wanted to save the positions of two younger managers whose names were on the layoff rolls.
Mike: Larger layoffs were announced at some well-known companies with the big news coming from Cisco at day’s end. Till Friday…………………..