Return of Mass Layoffs a Grim Sign for U.S. Workers
By Aaron Task | Daily Ticker 鈥?Thu, Jul 21, 2011 3:02 PM EDT
Putting pressure on an already lousy job market, the mass layoff is making a comeback. In the past week, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts. (See: Another Retailer Bites the Dust: Borders Doomed by Amazon Deal, Davidowitz Says)
Those announcements follow 41,432 in planned cuts in June, up 11.6% from May and 5.3% vs. a year earlier, according to Challenger, Gray %26amp; Christmas.
Meanwhile, state and local governments have cut 142,000 jobs this year, The WSJ reports, and Wall Street is braced for another round of cutbacks. This week, Goldman Sachs announced plans to let go 1000 fixed-income traders.
If these trends continue, we may soon be talking about losses in the monthly employment data -- not just disappointing growth, says Howard Davidowitz, CEO of Davidowitz %26amp; Associates
"Everything in business is confidence," Davidowitz says. "You lose confidence and businesses can't deal with that [and] who could have confidence with what's going on in Washington?"
Davidowitz is bipartisan in his criticism, calling the U.S. political system "dysfunctional and deranged." (See: "A Bunch of Morons in Washington": Howard Davidowitz Handicaps the Debt Ceiling Debate)
Still, the restructuring expert is a longtime and vocal critic of President Obama: "There has never been in a situation in my lifetime where a guy increases the debt by 40%, GDP growth is on the way down, Food Stamps are up, millions more are unemployed -- and to accomplish this we spent $4 trillion."Why is the economy starting to see mass layoffs again this far into the recovery?
we have not had any recovery...it was not true the first hundred times obama said it,and it is not true now...
Because there never was a recovery.This administration is very good at fudging the numbers.Its still going to get worse because there is a whole lot of foreclosures coming.They have just been postponed because of the banks pushing them through to fast.They were told to slow down.(till after the election would be my guess).Why is the economy starting to see mass layoffs again this far into the recovery?
Because we have not really started the recovery.
And because the world has looked at the results of the 2010 elections and deemed the G0P freshman to be inadequate to the task of governing.
There is no recovery and there cannot be a recovery until the bad debts are liquidated and everybody takes their losses.Why is the economy starting to see mass layoffs again this far into the recovery?
Every time this economically clueless President opens his mouth, ten more people get laid off.
this is all part of hope and change, its expected and when it gets worse you will see it get better., according to president obama
No stimulus...we're doing nothing to stimulate the economy..the states are laying people off which creates less demand...which makes companies lay people off
very simple,,,,let The Doctor fill you in first there never was any real reduction of JOB LOSS and second DC GOV chummed the numbers and HUNG out the unemployed 99ers.......Dr.
The Reptilians want to enslave us, and this may continue well until 2024.
Election 2010.
Gay Marriage
Their was never a recovery . It has been a DEPRESSION all along .
It's going to settle out near 10%...this is the new america. We'll never see 5 or 6% again much like we'll never go below 3.00/gallon for gas anytime ever again. Thanks Obama.
the state I live in (Pennsylvanian) also had plenty of layoff's for the current month however the layoff's were mostly in state jobs ie teachers and food service industry, manufacturing and construction are hiring.
Pennsylvanian has a republicans controlled government and the new governor was hell bent on gutting education and slashed hundreds of millions from education causing the job losses but no doubt it will be same republicans blaming Obama for the jobs lost.
Amazon killed Borders... it went belly up.
Cisco and Lockheed are major government contractors.
With the Teabaggers slashing and burning the budget... it is a cinch that government contracts will be the first to suffer.
Teabaggers cannot extrapolate logic.
They have NO WAY to see down the road, and realize that slashing government spending is the same as slashing the economy to ribbons.
They really think that if they cut the budget by 40%, that money will end up in their pocket.
i don't think we are in a normal times where there are cycles to compare too .
the main problem is governments that have miss invested tax payers money ,
and are now basically broke and so are the banks who are for the most part an extension of governments .
job losses will continue for many reasons , TECHNOLOGY and economics will force these things to happen at a much quicker pace than ever seen in the past .
the decisions of the governments that has been made over the last decades has brought us here and now we will see the results unfold over the near future , it's going to be a sad thing to see for many who are not prepared for it .
things look bad but at the same time the future can be good .
it's a process to go thru , but making the best choices can make it easier .
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