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U.S. Layoffs Surge to 17-Month High
Market Watch ^ | 7/6/2005 | Rex Nutting

Posted on 07/06/2005 10:25:29 AM PDT by ex-Texan

The U.S. automotive and retail sectors slashed tens of thousands of jobs in June, bringing the number of planned job cuts to 110,996, the highest in 17 months, according to outplacement firm Challenger Gray & Christmas Inc.

Corporate announcements of job reductions increased by 35% from May's 82,282 and by 73% from June 2004's 64,343, Challenger said Wednesday. Cuts are up 92% since April.

So far in 2005, planned job reductions are ahead by 14%, at 538,274, Challenger's tally shows.

The automotive sector announced 45,378 job cuts in June, while the retail sector axed 24,065.

The Challenger survey is not seasonally adjusted. Typically, job cuts slow in the summer months.

"The fact that job cuts are rising in the summer is not even the most surprising trend," said John Challenger, CEO of the firm. "The surprise is that we are seeing a growing number of mass job cuts."

The Challenger report doesn't track most of the jobs lost in the economy each month. Announced cuts can take place immediately or over the course of several months, and they can be accomplished through layoffs or through voluntary terminations, such as quitting or retiring.

According to the most recent Labor Department data, there were 4.6 million separations from jobs in April, including 1.6 million layoffs, up about 250,000 from a year earlier. At the same time, 4.5 million workers were hired, flat with a year earlier.

In a separate report issued Wednesday, the Institute for Supply Management reported an unexpected jump in the nonmanufacturing sentiment index in June, indicating strong growth.

The ISM index rose to 62.2% in June from 58.5% in May, ahead of expectations that had been anticipating a decline to 58.4%. See full story.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Foreign Affairs; Front Page News; Government
KEYWORDS: layoffs
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To: ARCADIA
Yes, you are; your money is a piece of paper it has no intrinsic value, nor do prices mean anything in and of themselves. The value is set by the market in the context of the system. If inflation increases the cost of goods by 1000%...

I'd argue that there is no such thing as intrinsic value because you cannot have value without an evaluator. Otherwise, please send me any paper with pictures of dead presidents or Ben Franklin, and I'll be happy to accept them as intrinsically valueless and conceed the argument to you if you do such.

If inflation increases the cost of goods by 1000% then the economic activity generated ...

Huh, inflation cannot increase the cost of goods ever, because it is a measurement of cost over time for a good. Inflation cannot generate economic activity. Your postulation makes no sense.

You can however print money at will, causing gross inflation in your economy. This is the key point you are missing. If America was printing (creating) money at will (beyond our means), this would cause inflation, and contrary to what you suggest would happen (economic activity generated by the production of those goods would increase opportunities and wages by the same amount.) the exact opposite would happen. Whether you had money in the bank or your mattress, you would still be wipped out economically because 1000% inflation over a short period of time would wipe out you, I and Bill Gates.

This situation (printing money beyond your true GDP) is exactly what happened in the early days of Isreal. They were essentially printing money without regard to their economic output of goods and services, causing extraordinary inflation, and wiping out the savings of anyone who had converted their money to the Isreali money in the early days of Isreal. Of course, had you kept your savings in good ole American dollars, you would have been uneffected by the Isreali printing presses.

btw, I'm glad your family got out of Cuba long ago. Hopefully when that commie dies, those who follow him will decide to make names for themselves by freeing the Cubans from this misguided notion that socialism is good for everyone. And is not Cuba an example of what you want America to become, closed borders and producing everything in country? No thanks, I'll stick with capitalism and free trade any day.

101 posted on 07/06/2005 5:59:51 PM PDT by Diplomat
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To: listenhillary
What is your solution? No one ever seems to want to be pinned down on that sticky detail.

The first step is getting out of denial.

102 posted on 07/06/2005 6:04:29 PM PDT by iconoclast (Conservative, not partisan..)
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To: janetgreen
I had a friend that worked in construction who was replaced by two illegal aliens.It's been happening in the landscaping industry for many years but now it has spread to every job that doesn't require a college degree.The day when a person could get a decent wage for a hard day of work is coming to an end.
103 posted on 07/06/2005 6:07:14 PM PDT by rdcorso (To Fight And Win The War On Terror We Must Secure Our Borders Now.)
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To: ex-Texan

Maybe Detroit should make better vehicles. Been there, done that.

And thanks for all that concrete evidence the "planet is changing". I'd never had known it was changing since I guess my 46 years living on a planet billions of years old make me so dang smart.

Oh, and I've got to give it to that photographic evidence of pure fact between 17 recent years. More definitive proof of fact regardless of millenium of existence.


104 posted on 07/06/2005 6:08:50 PM PDT by Fledermaus (Compassion is a great thing. Just quit making me pay for YOURS with MY money!!!)
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To: SandyB

More people are working today in this country both in actual numbers AND as a percentage of the available for work population.

Focus on the macro, not the micro.


105 posted on 07/06/2005 6:12:08 PM PDT by Fledermaus (Compassion is a great thing. Just quit making me pay for YOURS with MY money!!!)
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To: ARCADIA

I agree. All those manufacturers of slide rules, horse carriages, fancy hand held calculators, glass soft drink bottles, etc. sure got screwed.


106 posted on 07/06/2005 6:14:32 PM PDT by Fledermaus (Compassion is a great thing. Just quit making me pay for YOURS with MY money!!!)
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To: Diplomat
Cuba was at a distinct disadvantage. It is not big enough for a closed economic system, and the communist government sacrificed whatever productive assets were left in the name of party political interests. That is very different from taking a resource rich country like the US and allowing the free market to operate for a population of 300 million. You are not establishing socialism, you are actually reinvigorating capitalism (the making and production of capital).

Otherwise, please send me any paper with pictures of dead presidents or Ben Franklin, and I'll be happy to accept them as intrinsically valueless

Deal, but it would have to be a closed system; when you decide to buy that cheese burger from my grill you are going to need a wheel barrel of those and something of value in exchange. It doesn't matter what price levels we use, whatever we bartered will be priced accordingly. I am hope we decide to revalue the currency since working out the tip on those 17 digit checks can be a pain. :-)
107 posted on 07/06/2005 6:25:08 PM PDT by ARCADIA (Abuse of power comes as no surprise)
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To: listenhillary
7 Trillion dollars spent on the war on poverty. Are we any closer to winning?

We're not committed to winning.

108 posted on 07/06/2005 6:58:23 PM PDT by lucysmom
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To: listenhillary
You MUST roll back the regulations to a time when we were an industrial powerhouse.

That maybe the common wisdom, but I'm not sure its the answer. I just read an article about Japanese auto makers choosing to locate in Canada rather than the south because they've had a hard time in the past finding and training enough workers with the necessary level of literacy. Health care costs were also cited.

It could be that we're not investing in ourselves and its beginning to have an impact.

109 posted on 07/06/2005 7:15:05 PM PDT by lucysmom
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To: listenhillary
You are asking the state to protect jobs. I propose that there is nothing in the constitution that gives the federal government the power to do this.

Have your read the Constitution? Tariffs.

110 posted on 07/06/2005 7:44:01 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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To: listenhillary
I'd simply close down my USA presence and find a more business friendly country.

Where will be the market for your products when the US tariffs are restored?

111 posted on 07/06/2005 7:45:52 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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To: Blue Jays
"Do you also have a law degree? We prefer our technical staff to also have a firm understanding of legal exposure when doing business, so a J.D. is also required."

It was the most unbelievable statement I ever heard uttered in an interview.

Gee, I would have said "yes" in your place. Just to hear what other insane statement they will utter.

112 posted on 07/06/2005 7:49:41 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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To: ex-Texan

Your negativity is tiresome. Layoffs are up, but unemployment is down?

There was an article this morning about how the left is using phoney polls and studies to suggest that they are winning the war of ideas and that we should expect a marked increase in the number of such polls and studies regarding the judicial nominees.

What was your old screen name?


113 posted on 07/06/2005 7:49:47 PM PDT by Eva
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To: A. Pole

The article 1, section 8 was to provide revenue for the federal government, not to make the US citizens pay higher prices to benefit US industry.


114 posted on 07/06/2005 8:14:01 PM PDT by listenhillary (The interests of Muslims and interests of socialists coincide in the war against crusaders~OBL)
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To: BlackbirdSST

Believe me, I hear ya and experienced similar situations as you. I just don't like the condescending attitudes of some either. You are not alone, believe me.


115 posted on 07/06/2005 8:14:58 PM PDT by Nowhere Man (Lutheran, Conservative, Neo-Victorian/Edwardian, Michael Savage in '08! - DeCAFTA-nate CAFTA!)
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To: Sam the Sham

Actually, we'd prefer the US economy to not tank due to the protectionist policies the buchanites would like to impose on the USA.


116 posted on 07/06/2005 8:17:09 PM PDT by listenhillary (The interests of Muslims and interests of socialists coincide in the war against crusaders~OBL)
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To: lewislynn

I'd prefer they not by UNOCAL. But if they did, do you think their business in the USA might not be very rosy?

What is there to stop them from buying UNOCAL through a third party?
If they were sold to business in another country, what jurisdiction would we have if that company then sold to Communist China?


117 posted on 07/06/2005 8:22:00 PM PDT by listenhillary (The interests of Muslims and interests of socialists coincide in the war against crusaders~OBL)
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To: libill
It makes absolutely no sense to me how outsourcing manufacturing is good for the country.

A lot of japanese auto companies are outsourcing from japan and into the US. I think US CEO's are taking the easy way out and trying a quick fix to the bottom line by outsourcing.

118 posted on 07/06/2005 8:22:04 PM PDT by staytrue
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To: iconoclast

A comeback, but no plan.


119 posted on 07/06/2005 8:23:06 PM PDT by listenhillary (The interests of Muslims and interests of socialists coincide in the war against crusaders~OBL)
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To: listenhillary
The article 1, section 8 was to provide revenue for the federal government, not to make the US citizens pay higher prices to benefit US industry.

Your distinction is meaningless as both functions were performed by the tariffs. And the benefit was for the American workers no less than for the "US industry".

120 posted on 07/06/2005 8:25:02 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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