Planned jobs cuts surge 60 percent in July

A wave of private-sector downsizing pushed the number of announced job cuts by U.S. employers to a 16-month high in July, according to a report released Wednesday.

The 66,414 announced job cuts last month were up 60 percent from the previous month, according to the report by the Challenger, Gray & Christmas outplacement firm. The July figure was 59 percent higher than the planned layoffs announced in July 2010.

July’s planned cuts represented the largest monthly total since March 2010, when 67,611 job cuts were announced by the nation’s employers, Challenger said.

The July increase was dominated by a handful of private-sector employers, Challenger said. They include Merck & Co., Borders, Cisco Systems, Lockheed Martin and Boston Scientific. The job cuts from these five companies alone accounted for 57 percent of the July total.

Despite the increase in planned job cuts, the pace of downsizing in 2011 remains slower than 2010, Challenger said. So far this year, employers have announced 312,220 cuts — 8 percent fewer than in the first seven months of 2010.

But the trend has been getting worse recently.

“July marks the third consecutive increase we have seen in monthly job-cut announcements, which certainly seems to provide additional evidence that the recovery has stalled,” John Challenger, CEO of the firm, said in a statement. “What may be most worrisome about the July surge is that the heaviest layoffs occurred in industries that, until now, have enjoyed relatively low job-cut levels, including pharmaceuticals, computer and retail.”

Pharmaceuticals led all industries with 13,493 job cuts in July, Challenger said. It was the first time in seven months that government was not the top job-cutting sector. Government was the third largest job-cutting sector in July (9,389 cuts), behind retail, where employers announced 11,245 cuts.

On Friday, the government will release the nation’s jobless rate for July. Many economists are predicting it will remain unchanged at 9.2 percent.

– Henry Unger, The Biz Beat

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233 comments Add your comment

Bobby

August 3rd, 2011
7:42 am

While the Republicans and Democrats fiddle in Congress for Party unity, the USA falls.

Working Class

August 3rd, 2011
7:48 am

@ Bobby – Not really the politicians fault. It’s Wall Street as they stripped Americans out of jobs that they sent over to China, India and now Brazil. What does being a Dem or Repub have to do with a CEO and BOD decision to increase their profits by hiring cheaper labor overseas? A politicians can not FORCE capitalists to hire American or even BUILD in America. It’s all about the almighty dollar. Welcome to the ugly, greedy side of CAPITALISM!

willydoit?

August 3rd, 2011
7:52 am

@ Working Class – CAPITALISM works! That is why Americans have the life style we have. Change the tax structure for corporations and you will see jobs return to America.

Sam the Sham

August 3rd, 2011
7:53 am

WC, it has everything to do with the politicians. They are the ones who signed NAFTA and other global employment balancing bills that have made it incredibly lucrative to send out jobs elsewhere. It turns out that Ross Perot was a prophet.

New World Man

August 3rd, 2011
7:55 am

How many of these jobs are going overseas to people making less than half of their U.S. counterparts? If you want a job with a U.S. firm these days you better move to India.

Buzz G

August 3rd, 2011
7:56 am

No one in his right mind would be investing more in a business as long as a Communist is in the White House and his buddies control the Senate. If you invest in your business and make any money, he will take it away from you. “It is a matter of fairness.”, or so he would have you think. It is really a matter of greed by government and class envy from the small minded people who put him in office. We have moved our investments off-shore and they will stay there until people who understand and respect our rights return to power.

Yellow Britches

August 3rd, 2011
7:58 am

Working Class, capital flows to where it earns the highest rate of return. It avoids, if possible, places where it is penalized through taxes, over bearing regulations and societal resentment. The USA has become a high tax, highly regulated society in comparison to its global competitors. We have two choices in this matter. Decide to become competitive again by reducing the scope and reach of the nannie state or build a wall around ourselves and mimic the economic powerhouse that is North Korea.

Psychiatrist

August 3rd, 2011
8:00 am

You forgot to mention that health care jobs were cut too.

This congress is fighting each other and trying to win “political” points more than trying to keep jobs. The stimulus package was too small to handle the massive scale of this recession. The debt ceiling is nothing compared to making more jobs available to the working and middle class. Hey CEOs, if there is no middle class no one can afford to but your product or service.

Road Scholar

August 3rd, 2011
8:04 am

Boo Hoo Buzz! And he’s a socialist , not a communist, or have you not been paying attention? Oh, and he doesn’t eat his peas and he brushes his teeth back and forth instead of up and down! Give me a break!

Legg Mason in Baltimore had record profits last quarter and has announced layoffs…….why? Not enough profits? I guess they did that w/o causing the economy to crash!

James

August 3rd, 2011
8:05 am

This is not good at all. Just when we think we have reached bottom, another trap door opens. Creating jobs in this country should be of key priority, but it’s not. The middle class is threatened to extinction; older unemployed workers (45+) are having extreme difficulty finding work in a highly competitive environment; young people coming into the labor force aren’t smelling a bag of roses either. The pain continues and I’m afraid it will take many years for this country to correct itself economically.

Road Scholar

August 3rd, 2011
8:06 am

Yellow Britches: Ya’ know, if businessmen were really Christians….we wouldn’t need regulations!

Oh the uncertainty!
Oh, Mr Boehmer, where are he jobs?

James

August 3rd, 2011
8:10 am

What we saw with the debt ceiling bill is basically a white elephant giving birth to a mouse. It curtails the obvious train wreck that is about to happen. Shades of Gomez Adams crashing two toy trains together. We’re on the brink of disaster here if nothing is done soon.

where da money

August 3rd, 2011
8:11 am

what happened to hope and change and yes we can and the “recession is over?” Those $%#%^#@@ republicans%$%^#!!!

clark kent

August 3rd, 2011
8:13 am

Spot on Yellow. And you ain’t seen nothing yet; as long as we keep sending folks to Washington who think that government is the answer to all our problems then I’m afraid this is going to get much worse.

nativeson71

August 3rd, 2011
8:14 am

I and two others were laid off this past Monday. I spent 13 months with a great company. They beefed up their staff because of internal and external forcast were for recovery over the next two years. Well, the recovery did not come and those hired were fired.

My job now is to find a job…..but I am scared.
Watching MSNBC, The Morning Joe, one pundit said this is turning into ‘a lost decade.’
I am a good employee, I am honest and hard working. I work hard at work and at home.
What do I do except keep moving forward.
I will survive this.

Josh

August 3rd, 2011
8:15 am

“… have enjoyed relatively low job-cut levels, including pharmaceuticals…”

Is John Challenger retarded?

Pharmaceuticals cut 53,636 U.S. jobs last year, according to HIS OWN FIRM’S RESEARCH.

I wouldn’t call that “relatively low.”

R U Kidding

August 3rd, 2011
8:18 am

@where da money, are you kidding??? “Hope and change” was Oblunder’s catch phrase to get elected. We got no hope and plenty of bad changes with Oblunder and his supporters . . .

Chuck Allison

August 3rd, 2011
8:22 am

Obama and Reid still don’t get it! American businessmen are loathe to consider expansion when the Democrats are in power and pursuing policies that are blatantly anti-business. Repeal Obamacare, pay down the national debt, slash spending and watch the economy come roaring back. Right now, the Dems are just ignoring the obvious and proceeding with reckless abandon. Even a high school sophomore can understand the consequences of spending money with no conscience.

RGB

August 3rd, 2011
8:25 am

Yellow Britches and Buzz G are spot on. Only about 16% of this administration’s cabinet members have ever worked in the private sector. They, like the president, disdain all that it stands for.

And it’s quite telling that an individual who can’t even spell the name of the Speaker of the House correctly feigns the question about jobs. A blogger who singles out the Speaker of one of chamber of Congress as job-creator-in-chief must really believe the White House janitorial staff possesses awesome powers in this area.

But to answer your mindless question, some of the jobs are going overseas (rather than South Carolina) unless the Obama Administration’s NLRB stops insisting that the proposed new plant be unionized. That $1 billion plant would have built Boeing’s new 787 Dreamliner. This is just one of example of where capital “avoids, if possible, places where it is penalized through taxes, over bearing regulations and societal resentment” as Yellow Britches aptly noted.

Billy

August 3rd, 2011
8:26 am

With all the ungodliness in US society, it’s a wonder anyone is working. Too many things to list here as far as what is wrong, but if you’re not a believer, get ready for the roughest ride of your life. You don’t break every rule in the book and come out smelling like a rose. You can listen to the liberals and fail, or you can listen to the good book and prosper. That’s the equation…

John Ellison

August 3rd, 2011
8:32 am

How to create jobs in this country:
1. Convert government vehicles to American produced natural gas.
2. Discontinue the ban on drilling for oil in this country including Alaska.
3. Eliminate political exemptions (crony capitalism) in the corporate tax code and lower the rate to the same level as Canada’s corporate tax rate.
4. Lower personal and business overhead by reducing the size of government.
5. Reduce governmental red tape for business. Private industry creates jobs. Governments kill jobs.

Michael

August 3rd, 2011
8:33 am

Business is so slow and advertising competition so fierce I could offer free legal services and still only get a trickle of cases. I’d lay myself off but I’m self-employed, i.e., I wake up unemployed every day.

Point/Counterpoint

August 3rd, 2011
8:33 am

New World Man – “How many of these jobs are going overseas to people making less than half of their U.S. counterparts?”

A concept that seems to elude the “hopey changey” and “deregulation” crowd. If you are serious about returning jobs to the U.S., then by all means step up and volunteer for your pay cut. If you used to work in manufacturing, then make it known that you will be happy to accept the same wages as the people in China (currently around $9.00 a day). If you are skilled in I.T., then be sure that everyone you meet knows that you will accept $15,000 a year just like they do in India. The BS about taxes and de regulation are just that. BS. Companies operate for profit, PERIOD! Taxes and regulations are miniscule compared to the cost of employees. You really want to work? All you have to do is match pay with the employees on the other side of the globe, and you will have all the work you need.

bob

August 3rd, 2011
8:34 am

stop give away programs to buy votes. if you do not work you do not eat. hunger is a strong motivator. close the borders. these folks are killing our schools, or is that the purpose?

Dolores

August 3rd, 2011
8:37 am

Yet nobody is doing anything to lower the number of imported foreign guestworkers. They are happily job-hopping here in the US like it’s 1999. But for us a different story. You know those company websites where you can see their jobs and apply? Pure window-dressing. Most big companies hire from staffing vendors who send them mostly H-1B job candidates. If you get the impression that nobody ever looked at your application, it’s probably true. And then those same companies go to Washington and ask for more foreign worker visas.

carlosgvv

August 3rd, 2011
8:39 am

Employers have always known they could downsize their staff and pile more work on the remaining employees. In these recession times they also know these remaining employees won’t dare quit. So, when you combine this with sending jobs overseas, we reach what is now the new normal in US employment. Don’t be supprised if this trend continues into the foreseeable future.

carlosgvv

August 3rd, 2011
8:41 am

Enter your comments here

Michael

August 3rd, 2011
8:41 am

Officially H-1B’s cannot job hop since they are indentured to their sponsoring company.

A.S.Mathew

August 3rd, 2011
8:42 am

The spirit of capitalism went overboard with totally irrational and
ruthless greed, now we are all paying the heavy price. How in the world, the CEOs of the companies can make 10 million and 40 million while the bottom line people are making $ 15000.00/year. To make too much money, majority of the blue collar jobs were exported to foreign countries and it will take years to bring them back. The U.S.
began to worship the idol of wealth and materials-more pleasure and funs of life in anyway possible; and the idol is
crashed, and THE LIVING GOD IS GOING TO TEACH US A LESSON WHICH WE WILL
NEVER FORGET. Now the rich and poor are crying together.

Peter

August 3rd, 2011
8:43 am

Bush Jr added 72% to the debt, he said he had a plan going to cut the debt before we went into a near depression………..Obama has been fighting all up stream for 3 years.

The do nothing Republican’s have wanted this all along…….They want his failure and they don’t care who gets hurt.

After increasing the size of the government to the largest size ever, increasing the debt ceiling 7 times, starting (2) wars he didn’t win, keeping the war debt out of the over all debt, letting banks do what ever they want, the bailouts came for Corporate America, but everyday American’s got screwed.

Please understand, if you are NOT Rich, Republican’s want to screw you…… period…No new taxes for the wealthy.

Michael

August 3rd, 2011
8:43 am

I like the report where Foxconn in China, manufacturer of Apple products, stated they were adding more robots to the assembly line because Chinese (slave) labor costs were too high.

Trevor

August 3rd, 2011
8:44 am

On a longer term basis, I don’t see how the U.S. can continue to compete. When you see school systems, such as in Elbert County going to four day weeks after having endured furloughs and other austerity measures; and you look at the high school drop out rate in the state; and the increasing debt burden of college students, if they can afford to go at all; where are our workers coming from who can compete in the changing world economy? My child (8th generation Georgian) decided to study in an Asian university and it was an eye opening experience at how far behind the U.S. education system has fallen. When one goes to museums there on a Sunday and it is packed with students studiously taking notes about the exhibits, it is refreshing, but also almost frightening at the same time. What are our U.S. students doing on a Sunday afternoon? Don’t blame China. Look at ourselves in the mirror.

  

August 3rd, 2011
8:44 am

Well those of you who voted for this president, with a smugness and refusal to accept that he wasn’t prepared to be a president, are reaping what you sowed.

Unfortunately for the rest of us we have to suffer along too…

Point/Counterpoint

August 3rd, 2011
8:45 am

RGB – “over bearing regulations and societal resentment”

You forgot to include cheap labor en masse in your little tantrum. Since you seem so knowledgeable about what is driving American jobs away, perhaps you could enlighten the rest of as to how you would appease the Wal Mart crowd that loves $9.00 jeans, while paying a liveable wage to an American employee and still maintaining a profit margin for the shareholders? Since taxes can be written off, and regulations are typically ignored in this country, I’m going to have to assume that you have somehow, magically been able to compensate for the human factor.

I’ll anxiously await your insightful response.

Logic

August 3rd, 2011
8:47 am

Balanced Budget Amendment

Repeal the amendment allowing the Feds to collect income tax and replace with “Fair Tax”

Repeal Obamacare

New President & Senate in 2012

Problem Solved

Peter

August 3rd, 2011
8:50 am

Wow what a statement………Well those of you who voted for this president, with a smugness and refusal to accept that he wasn’t prepared to be a president, are reaping what you sowed.

Please tell me Palin was ready………..if McCain one of the oldest guy ever running for President had a heart attack and died.

HA HA HA HA HA ……gosh that is Funny !

Point/Counterpoint

August 3rd, 2011
8:51 am

Logic – “Balanced Budget Amendment

Repeal the amendment allowing the Feds to collect income tax and replace with “Fair Tax”

Repeal Obamacare

New President & Senate in 2012

Problem Solved”

Not quite, you still need to address how a company will still be able to offer products at the prices that people have become accustomed to while paying the wages that U.S. workers demand. without the abundabce of cheap labor, all the tax cuts and budget balancing in the world aren’t going to matter. You could elect God as the next POTUS, and it still won’t change the fact that overseas labor will work longer, harder and cheaper than their U.S. counterparts.

nokiddingsherlock

August 3rd, 2011
8:51 am

dolores: do you now why companies like H1B candidates? they are usually more productive. less than 25% are hired into the tech field. most are brought here to do work you would never do. pick fruit and veggies and work at chicken plants. i own a restaurant and would love some HB1 employees since most of the ones i have are really dumb and careless.

Logic

August 3rd, 2011
8:51 am

Peter:
With your logic, then is Biden ready? You have to admit, President Obama is in over his head.

N-GA

August 3rd, 2011
8:51 am

US Corporate tax levels are right in the middle of the developed world, but higher than third world countries. Many US corporations pay no income taxes (GE, for example), or shelter some taxes in overseas subsidiaries. One consumer goods company stopped manufacturing in the US years ago, then subsequently moved their corporate headquarters to Bermuda, yet they continue to sell their products here.

Regulations that require Intel (for example) to not release water containing heavy metals into the environment are necessary to prevent ecological disasters. Let’s get rid of unnecessary regulations, then put an import duty on goods manufactured in countries that have complete disregard for the environment, child labor, etc…or, better yet, make those imports illegal.

Peter

August 3rd, 2011
8:51 am

YUP Point/Counterpoint………. the family that owns Wal Mart is not rich off the backs of their employees are they ?

I think

August 3rd, 2011
8:53 am

Jimmy Carter and Ross Perot foresaw this years ago. Carter knew that continuing to allow our treasure and power to be exported for oil would eventually deplete our country and harm or destroy our way of life. He took steps to try to make us more independent of foreign resourses. That great GOP dumba$$, Reagan, made demoliishing these efforts his FIRST priority upon taking office. Ever wonder why? Take a look at his cabinet and who they worked for prior to coming to the government.

Ross Perot recognised that without constraints the capitalists in this country would move there factories to countries that make it easier to exploit the workers. Places without laws to protect the environment and with lax child labor laws. NAFTA was the worst thing that ever happened to this country and, in the long run, the world. We got a real bipartison screwing on that one. Capitalists have been waiting since the 1920’s to get this much power over the people again. The 20’s and before was when people worked 12 hours a day six days a week and when they could no longer work they starved just like they do in those countries where the factories moved. Want to go back to those times? It’s coming unless we use our minds and our votes to make changes to our government. Some call this protectionism, but I say we need some protection now.

clark kent

August 3rd, 2011
8:53 am

@Peter
I’m sorry, every one of your points is utter hogwash and brainwashed talking points. The problem is ruling class politicians who want to expand the size of government at all costs, regardless of whether they have a R or D behind their name.

Demand more from your representatives instead of just slogans, empty suits, and the politics of fear and envy.

Logic

August 3rd, 2011
8:55 am

N-GA:
Why not put in the Fair Tax then corporations would have 0% tax rate and would not have to move their operations to Ireland, Bermuda, etc. and you wouldn’t have to get rid of our environmental requirements.

How much does it cost corporations in legal & financial advice to run their profits off shore? The Fair Tax would bring a majority of corporations home offices immediately to the USA. This would mean jobs for the community, better schools, etc.

Simeon

August 3rd, 2011
8:55 am

Funny thing. Trickle down only works in job losses, not gains. Isn’t that odd considering how tenaciously the right hangs on to all the supply side nonsense? Of course, you might propagate such a myth yourself if you didn’t have to pay taxes to support the wars you started–especially when you’re profiting from those wars. Georgia is a poster child for failed Republican policies: highest number of bank failures; highest percentage of unemployment; and the highest per capita incarceration rate in a nation that itself has the highest incarceration rate of any nation on earth. I guess that makes Georgia the prison capital of the known galaxy. Is it working? Has anything the Republicans touted ever worked? The rest of the USA should take note of this sorry state and see what rightwing zealots can/will do once they have a government in their pockets. Oh yeah, how’s that ‘right to work’ bit working out?

N-GA

August 3rd, 2011
8:55 am

Here are a few corporate tax dodgers who profit from US sales, but moved their HQ’s to the islands:
http://www.focus.com/fyi/10-big-businesses-that-have-moved-abroad/

Peter

August 3rd, 2011
8:57 am

Hey Logic…… In a pick between Palin and Biden…….Yes Biden wins hands down.

The real issue was the lousy choices we had, bad and much worse. And Yes after Bush ruined the economy who wanted the Republican’s running things…….I don’t want them and their current attituded now, as they are just wanting typical American’s hurt to save the Rich pennies.

Logic

August 3rd, 2011
8:57 am

N-GA:
Think about it, why did they move their HQ to the islands? Why not support the “Fair Tax” and bring the tax dodgers back to USA which will bring JOBS! Isn’t JOBS what the real issue is here in our country according to the left then support the “Fair Tax”.

Also, no tax loopholes with the “Fair Tax” so President Obama should love it so no private jet owners can benefit.

Point/Counterpoint

August 3rd, 2011
8:57 am

Logic – “The Fair Tax would bring a majority of corporations home offices immediately to the USA. This would mean jobs for the community, better schools, etc.”

BS. You still have to address the cost of LABOR. Jesus, taxes are minor. If a product costs you more in labor to produce than you can market it for, then you inherently have to find a cheaper source of labor to maintain your margins. What part of this do you not understand?

Peter

August 3rd, 2011
8:59 am

This statement……The problem is ruling class politicians who want to expand the size of government at all costs, regardless of whether they have a R or D behind their name.

Gee we have the Republican’s lying about that don’t we…… they claim to be about small government, and wise spending…But really that has been a lie.