Posted on 09/05/2003 11:15:13 AM PDT by Afronaut
Firms still slashing jobs
WASHINGTON, Sept. 5 — Despite the civilian unemployment rate sliding down to 6.1 percent in August, the government reported Friday that companies slashed payrolls by 93,000, raising new concerns that the fragile economic recovery could falter.
AUGUST WAS THE seventh consecutive month of cuts in payrolls, a survey released by the Labor Department showed, indicating continuing weakness in the job market. Analysts had expected companies to add 12,000 new jobs.
At the same time, the overall seasonally adjusted unemployment rate fell from 6.2 percent to 6.1 percent of the labor force, as reflected by a survey of U.S. households. Stock prices fell in early trading Friday on news of the job losses.
The survey of businesses showed that job cuts were heavy again in manufacturing, a sector that has suffered the brunt of the economic downturn that began in March 2001. President Bush on Monday announced that a Commerce Department assistant secretary post was being changed to focus on revitalizing that part of the economy.
Friday’s reports no longer reflected a cyclical economy trying to add jobs after a recession — “which is depressing,” said Sung Won Sohn, chief economist at Wells Fargo. Analysts had expected companies to add some jobs last month.
Deeper concerns now are focused on long-term structural problems in the economy, such as a flood of U.S. jobs going overseas. “We have simply seen the tip of the iceberg,” Sohn said. “I think it will get worse, not better.”
At the White House, spokesman Scott McClellan said, “The economy is growing but we want to see it grow even faster.” He said jobs are one of the last things to grow as the economy improves.
Some reports estimate 5 million jobs — many high-paying — will be lost to other countries by 2015. As the economy grows, demand is being filled from overseas, Sohn said. Also, because of that increasing global competition, businesses are holding down costs by not hiring. If hiring doesn’t improve, the recovery could be in jeopardy because consumers worried about their job prospects will stop spending. That’s been the driving force in the U.S. economy.
Hiring in health care and construction helped offset losses in factories and other industries, such as information, professional and business services and government, Friday’s report said.
Last month’s power blackout in the Northeast and Midwest was unlikely to have affected either of the monthly surveys, Labor Department analysts said.
Labor Department analysts believe the survey of businesses provides a more reliable picture of the jobs market than the household survey. The payroll report is based on a larger sample and estimates “are regularly anchored to” counts derived from employment insurance tax records, said Kathleen P. Utgoff, Bureau of Labor Statistics commissioner.
Last month, the number of people in the labor force remained largely unchanged, with just 10,000 giving up their job searches. The labor force is comprised of those working and looking for work.
Nearly 2 million people in August were unemployed for 27 weeks or more, representing nearly 22 percent of all jobless workers. Those figures were similar to July numbers.
More
(Excerpt) Read more at msnbc.com ...
I remember 2 years ago when I called a friend at Cisco and she described the blood letting they just went through.
4000 in one day!
Curious. I've said that if (note the conditional word in there) you act elsewhere as you do here, then it's understandable why you're losing your job. If you're just putting on act, then it's not understandable.
Anyone who thinks they can divine the reason for a person's termination by reading posts isn't really worthy of a response.
Are your posts the real you, or do you just put on an act for FR?
And if you're putting on an act...why should I believe that you're actually losing your job?
I am in the process of setting that up now. It's only been two days since I was notified, and my termination is not effective until November. I've developed a good reputation as an expert by the company that created and markets the programming environment I use, and they are constantly beseiged by customers looking for experts. I am fortunate that I occupy a niche job with few real competitors. I also have my certification to be an instructor in the language I use, so I can alwys find work as a trainer. I am far luckier than most in my career choice.
Perhaps I read too well, and you don't understand what you are saying?
Thanks. I am not worried. I'll find work. There are jobs available for my line of work. It's just hard watching so many decisions that don't seem to look past the end of a nose.
I agree. But after the numerous bloodlettings that have happened at this place, I can assure you my attitude no different from the other engineers. Engineers are notoriously hypercritical, and don't suffer fools easily.
The seething anger IS building -- I have voted Republican for over 20 years and voted for Pres Bush -- that won't happen next election. I'm hoping for a third party ... I'm not alone in my thinking.
Maybe. I believe I am saying I'm not in favor of government intervention - I'd like the government to stop subsidizing offshoring with taxpayer's dollars, and I'd like them to stop forcing wages down by replacing US workers with H1Bs.
You, by your refusal to address my point, seem to be in favor of this form of government intervention.
What did you read?
It makes no difference what their intentions are. If they are incompetent, they don't deserve to govern a public company. As for going to the top, perhaps you didn't hear me when I wrote that the board and executive staff are all covering each other's arses. There are NO checks and balances.
You have evidence of nothing. For the record, I know little of OPIC. Nor do I care to argue with the anti-OPIC press releases that pop-up here periodically. (One would think that if someone was truly opposed to OPIC, then one would post a pro-OPIC piece and tear it to pieces).
As for immigration policy, I suppose one could argue that a H1-b Visa is an example of government intervention, if one defines "intervention" as something the government has the legal mandate to do.
This is rich. You never fail to please.
If someone were to recommend slapping import duties on SW imports in order to protect US programmer jobs you'd scream bloody murder, though under the constitution the congress has a "mandate" to regulate trade and apply tariffs.
Anyway, I've made my point. There are those benefiting from government intervention, and it ain't disgruntled, out of work programmers.
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