U.S. mergers boost layoffs 17% in February
[good god they are even spinning this as positive.
Wednesday, March 2, 2005 3:23:22 PM
forexstreet.com
NEW YORK (AFX) -- Layoffs at U.S. corporations jumped 17 percent in February to 108,387, boosted by increased merger and acquisition activity, international outplacement firm Challenger Gray & Christmas reported Wednesday
Nearly 50,000 of the announced layoffs, or more than 40 percent, were directly due to mergers, the firm said. Most of the merger-related cuts were in telecommunications. During the month, SBC Communications announced plans to acquire AT&T, while MCI agreed to a deal with Verizon. February was the fourth month in the last five in which announced job cuts exceeded 100,000. Layoffs were up 40 percent from February 2004's 77,250
The Challenger survey covers announcements of job reductions at U.S. companies, not actual layoffs. The announced cuts can take place immediately or over a period of months, sometimes through voluntary actions such as quitting or retiring
"The numbers do not necessarily mean the job market or the economy are backsliding," said John Challenger, CEO of the outplacement firm. "In fact, the cuts are probably more indicative of an energized economy that is continuing to build momentum." "There is a unique labor market environment where both job creation and job destruction occur simultaneously," Challenger said
[Yeah creating jobs at Wal-mart at minimum pay and destroying jobs elsewhere. That is unique all right. Obviously bullis too. Mish]
In February, telecommunications firms announced 33,270 job reductions, the most in the sector since October 2002. Transportation companies announced 12,188 job losses, while consumer-products companies cut 11.627 jobs
The Challenger data are not seasonally adjusted
The Challenger survey covers only a small portion of job losses; most small businesses do not announce job reductions. In January, nonfarm payrolls grew by 146,000, government data show. Job growth averaged about 185,000 per month last year
February's payroll data will be released on Friday. Economists are predicting net growth of about 221,000 jobs. |
