Job Cuts Top 100,000 in January - Report

Reuters ^ | Tuesday February 3, 2004

[Walkin Man]

Job Cuts Top 100,000 in January - Report Tuesday February 3, 12:50 pm ET

NEW YORK (Reuters) - Planned job cuts in January were 26 percent higher than in December as U.S. jobs moved to countries like India, China and the Philippines, and as mergers made some jobs redundant, according to a report on Tuesday.

The outplacement firm Challenger, Gray & Christmas Inc., said post-holiday job cuts reached 117,556 in January surpassing the 100,000 threshold for the first time since last October.

Financial markets were on their toes awaiting January's payrolls report to be issued by the Labor Department on Friday after a disappointing December report that showed an increase of only 1,000 jobs.

Analysts had expected 150,000 new jobs to show up in the data, and the worse-than-expected outcome showed that the U.S. economic recovery has yet to produce sustained jobs growth. Economists again expect a figure of 150,000 new jobs in January.

Poor job creation is a headache for President Bush as he seeks re-election in November. The economy -- specifically job creation -- is expected to be a key issue in the campaign. Since Bush took office, more than 2.3 million non-farm jobs have been lost.

According to Challenger, consumer product companies led the January cutbacks with 22,775 job cuts, the largest number of reported job cuts in that sector in a single month since 1993, according to Challenger.

Challenger said one of the main factors for the job cuts in January was an increase of employers eliminating jobs in the United States and shifting to service providers in India, China and the Philippines among other countries.

Another factor was an increase in mergers so far this year. The survey's head, John Challenger, noted in a statement that one of those mergers will result in "as many as 10,000 job cuts to take place as redundant positions are eliminated."

[Paul C. Jesup]

So-called "Free Trade" is great isn't it?

(saracasm) This isn't Free Trade, it's a hose job...

[JohnnyZ]

See #80. This year's cuts are much lower than last year's, and you've swallowed Reuters' B.S. hook, line, and sinker.

[DrDeb]

"I hope this isn't what you have been waiting for."


No, the KEY jobs report will be released on Friday, February 6!

NOTE: This VERY poorly written article fails to mention that the 'job cuts' number released today represents a 50% DECLINE from January of last year!!!!

[Dr. Frank fan]

Brilliantly put. Well, I am becoming more convinced!

[phil_will1]

"I'm seriously doubting Washington's numbers are as accurately reflecting the true economic situations about the country and believe as long as President Bush is so ill-informed and insulated from the real earth, the situations will get worse."

I agree that this administration is not communicating "compassionate conservatism" on this critical issue. I saw Treasury Secretary Snow the other day on TV and he quoted GDP growth numbers, the Dow, and all these arcane statistics which mean little to the average person concerned about their job or lack thereof.

This is eerily reminiscent of what happened in 02 when the economic advisors to the first Bush did the same thing. I remember practically screaming at my TV that Americans were in REAL economic pain and fear and these guys seemed totally oblivious to it, reinforcing everything that Democrats always accuse Republicans of - being out of touch with average working Americans. Remember James Carvilles's famous line "It's the economy, stupid"? Just because the overall economy is improving now, rather than declining as it was then, does not mean that the administration can afford to seem so detached from what is going on on Main St.

[lelio]

This year's cuts are much lower than last January's.

Oddly, CBS picked up on that:

January 2004 layoffs were 11 percent lower than January 2003's 132,222 and 53 percent lower than January 2002's 248,475.

Hard as I try I can't find historical CGC layoff figures. Anyone got them?

[M. Thatcher]

you people are beyond pathetic She says, as she hurls a stinkbomb and sulks away. Now there's an example for us all to follow!

It is bad for one's soul to sully oneself on sentiments as patently ridiculous as yours.

Here's my example for you: BECOME SUCCESSFUL.

[RaceBannon]

Who is Reuters?

I speak from what I experience, not what I read.

Every design job is flooded with over 500 resumes in Connecticut.

Just call a temp agency and ask.

I call them all the time, I know. I don't need some French reporter to tell me what I already know from personal experience.

[freeeee]

The biggest symptom of this country's slide into Third World status is not the flight of jobs overseas

Well to be fair, its more than that.

We've got an enormous, bloated and corrupt government that caters to elites and insiders and demands bribes (known here as 'licensing fees') for practically every human behavior .

We have an ignorant population, who stare in wide eyed amazement at the bread and circuses thrown at them. (Yes, the superbowl is part of that)

We have police agencies that will steal your car/house/money without due process just as fast as a Tijuana politico.

We have arrogant "public servants" that will have you beaten and thrown in jail for protesting their motercade.

The list goes on, but I don't want to bore you.

[righto]

What we are transferring in the aggregate are the low level manufacturing jobs the are more cheaply done overseas. The high tech jobs in r+d are here where the brain power is. The guy answering the phone in India provides a service that the consumer here would otherwise not have access to due to its cost of offering over here.
The fact is that we are limited in selling many products to China and Japan due to pokicies that we should not emulate here unless they don't reciprocate. That is why Bush rescinded the steel tariffs because it reduced our leverage with trading partners.
The point I was making in moving production to the US was based on savings re the cost of doing business. Far from seeing a hollowing out of the US economy I see what has always attracted people from the world over.
Trying to regulate job creation will simply not work.

[clamper1797]

So ... here we are ... three out of work AMERICAN engineers .. just on this thread ... how many more of us are there ... I could rattle off another dozen just on FR.

Then you get some hair brain who wants us to get a job at ol' Mickey 'd's ... not realizing that ol Mickey "d"'s is NOT going to hire us ... I know cause I've tried. Something to do with "over qualified". The other night i related the story of how I had to train my H1B replacement. Some A'hole called me a liar ... no proof ... no debate ... just flat out called me a liar. That speaks VOLUMES of the mindset of your garden variety FREE TRAITOR. Don't confuse them with facts. And don't say that disproves their ideas or you must be a liar

[RaceBannon]

Another thing they missed about this January's cuts being less than last years, is that there were MORE jobs lost this last summer than the summer before.

That means there was not the same number of jobs created in the last quarter that needed to be cut after the holidays.

So, just because the cuts were less in number this year than last year, does not mean happy days are here again. We lost more jobs in the last year than almost any year since the early 1980's.

[chimera]

The Rats are already rehearsing their sounds bites. Listen for the key words they use to describe Bush II: "isolated", "detached", "out of touch", and, of course, the favorite of populist demagogues everywhere, "doesn't care about the little guy". John Edwards (himself a rich trial lawyer who has a home on a private, guarded island) was talking the other day about President Bush having created "a country of haves and have-nots". When Carville resurrects the "War Room", the circle connecting back to '92 will be complete.

[1rudeboy]

So-called "Free Trade" is great isn't it?

Since you are asking, and implying that the only way to keep Americans working is to increase the cost of doing business here, then it is certainly "greater" than accelerating the rate at which companies depart.

[freeeee]

It is bad for one's soul to sully oneself on sentiments as patently ridiculous as yours.

But you did anyway. If you don't like what I have to say, refute it with some facts or get lost.

[JohnnyZ]

Who is Reuters?

Don't tempt me like that.

[lelio]

and implying that the only way to keep Americans working is to increase the cost of doing business here

That's being dishonest -- the major plan kicked around here is to increase tariffs and decrease internal taxes.

[Dr. Frank fan]

Then you get some hair brain who wants us to get a job at ol' Mickey 'd's

I don't "want" you to get a job at Mickey D's.

I think it's great that you don't have to.

[RaceBannon]

What we are transferring in the aggregate are the low level manufacturing jobs the are more cheaply done overseas.

Wrong. We are transferring any kind of manufacturing jobs, including CNC machining. I work on the side making drawings for a beverage company, designing faucets and taps for kegs. They get all their machining done in China!

The spring and stamping /Progressive Die company I worked for twice since 1998 is now in China, the manufacturing side, those jobs used to employ over 150 people doing assembly and machine operation. Now, those people are unemployed.

Jet engines are made 75% in China and Poland. Just ask anyone from Pratt & Whitney.

You need to read more.

The high tech jobs in r+d are here where the brain power is.

Math calculations for Pratt & Whitney are done in India now. DRAFTING jobs are now going to India. Not a JOKE!

The guy answering the phone in India provides a service that the consumer here would otherwise not have access to due to its cost of offering over here.

Those jobs paid the lowest of all scale jobs I know if. THE LOWEST, and these companies cannot afford to keep that work here?? $7 an hour here in Ct!! And that is TOO MUCH? People make more money at Burger King!

[clamper1797]

Well last year I had $20 in my pocket ... I spent $19 ... this year I have $5 in my pocket ... so all I spent is $4 ... gee that must be a good thing because I didn't spend so much.

If you have a million workers and you lay off 900,000 workers one year. Odds are your NOT going to lay off 900,000 more workers the next year.