Mass Layoffs, Robots, Paints Dismal U.S. Jobs Siutation
By: Mike Shedlock
Aug 05, 2011
A good jobs report on Friday (if we get one) is now meaningless. Looking ahead, the jobs situation is bleak globally, not just in the US. Here is supporting evidence for my statement.
Planned Layoffs Surge In July
Challenger says Planned Layoffs Surge In July
August 3, 2011: For the past three months, American companies have been cutting their workforce in increasing numbers, according to a new report from Challenger, Gray & Christmas, an outplacement consultancy group in Chicago. In July, the number of planned job cuts surged to a 16-month high of 66,414 — a 60 percent increase from June. “We’re beginning to see patterns that are disconcerting, and the really troubling part is this: Nothing is happening in the economy which is going to boost job growth,” said Christine L. Owens, executive director of the National Employment Law Project. With the exception of slight improvement last week, new weekly unemployment claims have topped 400,000 a week for more than three months — the level generally considered the dividing line between an improving labor market and a stagnant one. Likewise, the number of job openings dropped in June and July, according a firm that tracks online job postings. Another telling piece of the puzzle: The number of temporary workers — whose fortunes are closely watched as an indicator of employers’ future hiring intentions – dipped between May and June, according to the Bureau of Labor Statistics.
For the record, last week’s dip below 400K initial claims was revised up. It has been 17 consecutive week of +400K initial claims.
40,000 European Bank Positions Targeted
Marketwatch reports 40,000 positions are targeted; Swiss firms hit by soaring franc
A running tally of planned job cuts by European banks reached around 40,000 Tuesday, little more than halfway though earnings season, as firms that failed to control costs or were over-optimistic about growth make the deepest cuts.
Most of those cuts are in Europe but a slowdown in Europe means a slowdown in US exports. Moreover, one can expect similar cuts in the US as soon as banks are forced to mark assets to market.
HBSC, Credit Suisse, Goldman Sachs, Morgan Stanley Announce Cuts
The New York Times reports HSBC to Trim 30,000 Jobs in Cost-Cutting Move
August 1, 2011: HSBC, the big European bank, said Monday that it was cutting 30,000 jobs, as part of a wide-ranging cost-cutting program to improve profitability. HSBC is the latest bank to announce job cuts amid regulatory uncertainty and global economic weakness. Credit Suisse said last week that it planned to eliminate 2,000 positions, or 4 percent of its jobs. Goldman Sachs and Morgan Stanley are also reducing their head counts.
That 30,000 is part of the 40,000 reported above.
Merck To Cut Up To 13,000 Jobs