U.S. Job Cuts Surge 125 Percent in Oct.-Challenger

NEW YORK (Reuters) - The number of job cuts announced by U.S. employers surged 125 percent in October, after declining for two months, calling into question the strength of the recovery in the job market.

Planned layoffs at U.S. firms shot up to 171,874 jobs in October, from 76,506 in September, job placement firm Challenger, Gray & Christmas said on Tuesday. Announced layoffs were at their highest since Oct. 2002, when 176,010 job cuts were announced.

"With factors like technology, outsourcing, and consolidation working against job creation, any job market rebound we see in the near future will be relatively small," said John Challenger, chief executive at Challenger, Gray & Christmas, in a statement.

Some analysts were heartened by the September employment report, which showed payroll numbers rose by 57,000. In addition, last week the number of initial jobless claims fell to 386,000, the fourth straight week that claims were under 400,000, which economists consider as a critical level for the labor market.

Even yesterday's manufacturing report from the Institute for Supply Management said the pace of factory job cuts was slowing.

Analysts are eagerly awaiting Friday's report on the employment situation. According to a Reuters poll, economists on average forecasted payrolls increased by 55,000.

They forgot the 10's of thousands in the mtg industry who are on commission who are out of work/business who will not show up on this.

Not entirely sure to which "this" you referred.

Being 'on commission' would not disqualify them for Unemployment Insurance claims nor exclude them from being counted as unemployed. How one's pay is calculated is not the consideration.

What matters is if they are employees (employed & paid on a W4/W2 basis) or contractors (engaged and paid on a contract and 1099 or Incorporated basis).

Contractors (regardless of how their invoices or bills are computed - by the hour or by the sale), whose contracts are terminated or not renewed, are not deemed unemployed and thus not eligible for UI, and thus would not appear in the UIclaim reports. However, contractors would be picked up in the Dept of Labor's monthly "Current Employment Situtation" (Jobs) report during the home survey as self-employed but out of work.

I suspect most mortgage brokers and processors are in fact W2 employees, and whose layoffs will appear in the UI claims.

But given that CG&C is an Employer/Employment related agency, CG&C may not consider contractors (or temp personal) in their layoff computations.

It's an interesting point. Do you know or have a 'sense' of how many of these workers to which you refer are 'permanent' employees (either full or part-time) or 'temporary' contractors (temps)?

getting down to the nitty gritty. Thanks for the points. "This" was the unemployed.

Can't tell how many are in the contractor category. I do know that 1099's only come out after the end of the taxable year. In our situation, approximately 25% are contract and have 0 benefits and are paid with a corporate check, no deductions and therefore no reporting.

Your reply has virtually no meaning. Sure the employment rate doesn't take into account all those factors you mentioned but neither do you other than in a personal story which is not evidence. Only propaganda. And you joined up Oct 27 this year,,,did you join to talk about how bad the economy is and how everything is going to hell. In your initial post to me you opined that noone would have good enough jobs to buy things or something to that effect. That is patently false and propoganda. People are buying like crazy or haven't you noticed?

You said:
Your reply has virtually no meaning.

Ok, well that leaves it open to some meaning, however slight.

also:
...but neither do you other than in a personal story which is not evidence. Only propaganda.

It is anecdotal evidence, not objective, conclusive, final or anything other than anecdotal.

It is not even propaganda. But it is true.

I joined up Oct 27...and? Therefore what?

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