Credit BB over on the AMAT thread for this,
Message 19465163
but I thought it important enough to repeat over here.
smartmoney.com
October Layoffs Surge
Market Monitor
By Stacey L. Bradford
November 4, 2003
Can you say jobless recovery?
Despite last week’s news that the economy grew a robust 7.2% in the third quarter, an ever-growing number of workers are receiving pink slips. Last month corporate America announced plans to slash a stunning 171,874 jobs, a 125% increase over September’s figure of 76,506.
The October surge was the highest monthly total since October 2002, according to a report released Tuesday by outplacement firm Challenger Gray & Christmas. It also ended a streak of five consecutive months of sub-100,000 job cuts. The lowest figure during that stretch was back in June when just 59,715 jobs were lost.
While the number of job losses was steeper than many had hoped for, the trend was in line with seasonal expectations, says Challenger. During the last few months of every year companies hand out an increasing number of pink slips in an effort to trim costs and meet budget and profit goals.
Still, don’t expect the job market to recover come January. “With factors like technology, outsourcing and consolidation working against job creation, any job-market rebound we see in the near future will be relatively small,” predicts John Challenger, chief executive of the outplacement firm.
Just how small? According to a Challenger poll, more than three-quarters, or 78%, of human-resources executives didn't expect to see any significant upturn in hiring until the second quarter of 2004. Eleven percent anticipates hiring will pick up in the third and fourth quarters, while another 11% don’t anticipate any improvement in 2004.
On Friday the government will release the October unemployment rate. It currently sits at 6.1%. |
