Are mass layoffs back?- MSN MoneyThe troubled maker of BlackBerry phones is chopping 2,000 jobs this week. Research In Motion's (RIMM) cuts, announced Monday, amount to 10.5% of its work force. That's higher than analysts thought, The New York Times reported, leading some to wonder whether the company is worse off than expected.
RIM isn't the only one wielding the ax this summer. Cisco Systems (CSCO) recently announced job cuts of 6,500, rocking a tech sector that had been relatively stable in the recession. Lockheed Martin (LMT) also wants to cut 6,500. Borders is liquidating and laying off thousands of employees in the process.
Each of those layoff announcements is devastating for the families involved. Put them together, and we're starting to see a return of sweeping job cuts that could further erode the fragile economy.
Companies are laying off employees at a level not seen in nearly a year, The Wall Street Journal reports. It couldn't be happening at a worse time, with an unemployment rate stubbornly set at above 9% and an economy that doesn't inspire confidence in anyone.
The problem with these levels of layoffs is that they spread with alarming speed in a vulnerable host -- and the current economy fits that bill exactly. Companies see cuts at places like Cisco, generally considered a bellwether of the tech sector, and then look more critically at their own headcounts.
very interesting:The Beige Book, which is based on information collected on or before July 15, said growth has slowed in the majority of districts, particularly those nearest the Atlantic seaboard, with the Minneapolis district hurt by the now-concluded state government shutdown.
That represents a slightly worse result than the June 8 Beige Book, when seven districts grew at a steady pace. And it confirms economic data showing limp growth from April to June. The Commerce Department on Friday will report second-quarter gross domestic product, and economists polled by MarketWatch expect a limp 1.6% growth rate, worse than the 1.9% rate of the first quarter.
Growth slows as labor markets softAlso positive: tourism, at least in areas unaffected by severe weather. Though the Beige Book didn’t specifically say a weaker dollar attracted tourists, the report did say Canadian shoppers flocked to a “large mall in Western New York” and New York City also reported a shopping boost from tourism.
Last edited by The Prof; 07-27-11 at 03:57 PM.
With all of that going on, I wouldn't be surprised if the August jobs report goes back into the red, and that ain't good news.
In 2012 (as in 2010), this is what people are going to be thinking about when it comes time to vote:
Comparing Recessions and Recoveries: Job ChangesHorizontal axis shows months. Vertical axis shows the ratio of that month’s nonfarm payrolls to the nonfarm payrolls at the start of recession. Note: Because employment is a lagging indicator, the dates for these employment trends are not exactly synchronized with National Bureau of Economic Research’s official business cycle dates.
There were actually fewer people employed in this country last month, June 2011, than were employed at the end of the recession in June 2009. Two years of recovery, and employment has gone nowhere.
that's the direction we're heading, according to the typecasts cnbc likes to quoteI wouldn't be surprised if the August jobs report goes back into the red, and that ain't good news.
you need to paste that graph 1000 timesComparing Recessions and Recoveries: Job ChangesHorizontal axis shows months. Vertical axis shows the ratio of that month’s nonfarm payrolls to the nonfarm payrolls at the start of recession. Note: Because employment is a lagging indicator, the dates for these employment trends are not exactly synchronized with National Bureau of Economic Research’s official business cycle dates.
thanks, friend, keep up the excellent work
Last edited by The Prof; 07-27-11 at 06:37 PM.
today: Manufacturing hits lowest level in 2 years - Yahoo! News
seeya at the polls, progressives
today: Americans cut spending for first time in 20 months - Yahoo! News
Americans cut their spending in June for the first time in nearly two years after seeing their incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and barely growing.
Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009.
Some of the decline was the result of food and energy prices moderating after sharp increases earlier this year. When excluding spending on those items, consumer spending was flat.
Still, consumers also cut back on big-ticket items, such as cars and appliances, which help drive growth.
Incomes rose 0.1 percent, the smallest gain since September.
While suturing a cut on the hand of a 75 year old rancher, who's hand was caught in the squeeze gate while working cattle, the doctor struck up a conversation with the old man... Eventually the topic got around to Obama and his role as our president.
The old rancher said, 'Well, ya know, Obama is a 'Post Turtle''.
Not being familiar with the term, the doctor asked him, what a 'post turtle' was.
The old rancher said, 'When you're driving down a country road and you come across a fence post with a turtle balanced on top, that's a 'post turtle'.
The old rancher saw the puzzled look on the doctor's face so he continued to explain. '
"You know he didn't get up there by himself, he doesn't belong up there, he doesn't know what to do while he's up there, he's elevated beyond his ability to function, and you just wonder what kind of dumb ass put him up there to begin with."