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
Peter
August 3rd, 2011
2:34 pm
WOW…..here is an interesting point of view……..its biblical that our world and country is on track for disaster because we have forgotten GOD
The Bible and God is a man made concept….. so no wonder that was said.
Alphare
August 3rd, 2011
2:38 pm
brion, “Wander how there profits will look then”, that’s the problem.
Companies nowadays make more and more money from offshores. Take the example of the company I work for. We used to make 90% of the money from the US 20 years ago, now only 40%.
GM makes more money from China than from US. Coca Cola, Caterpiller are going that way too. If you are the CEO of Coca Cola, you struggle hard in the US to compete with Pepsi to maintain your softdrink of 30% of the market share. Remember you struggle hard only to maintain, not gain. But if you go to China and India, and you can double your sales in 10 years without much competition. If you don’t go there, your status in the world ranking will shrink from No 1 to nobody in 20 years because of sheer population in China and India.
What would you do if you are the CEO of Coca Cola?
The world economy is great
August 3rd, 2011
2:42 pm
Brion gets it – most of the posters are either employed by the republican/tea hole party or just plain dumb@$$es. Keep fighting DEM vs REP until you are all dumped out on the street with no job or COUNTRY…MORONS.
Really?
August 3rd, 2011
2:51 pm
“..republican/tea hole party or just plain dumb@$$es…”
Now there’s a fine example of superior intelligence.
clem
August 3rd, 2011
2:54 pm
sometimes the truth hurts
reality
August 3rd, 2011
3:01 pm
As many of you debate the Obama Vs Bush “who did what to this country”..it really isn’t going to matter..decades of overspending and lack of credit sanity is placing us within 5 years of being Greece…the debt continues to grow uncontrolled in this country..and the “deal” this week translates into a finger in a leaking dam.(everyone else, whether willing or unwilling has had to cut back in this economy..except our OWN government!…wish I could just raise my debt ceiling and print more,..I would get arrested!)..at this point I don’t care WHO got us into it..I care about getting ourselves OUT of it!
brion
August 3rd, 2011
3:10 pm
Well peter if that’s your view and seems you are a Atheist…..no need for me to comment on that statement of man made when it comes to GOD and the Bible…..yet even science has proven a lot of things in the bible…but I guess you can always go with the big bang theory or humans came from a fish or monkey….I guess those are man made too huh……what’s for sure is this economy has been crushed by man…….I could care less if the president is green……the point is you all are babbling over meaningless things such ad repulse or demons……even if Obama wasn’t president people would be whining about Mccain……. Everyone says they can fix the economy but I haunt noticed any president being able to do that singlehandedly….. If the economy yanked in 8 years why do repulse think it can be fixed in 4 years or less? Or they have the answer but didn’t do squat while in office. Demons day they can fix the economy but seem to spend more than we have…not to mention Clinton giving so much to China……. All these politicians are crooks and liars yet you all actually think they can fix this ..lol….even if taxes for corporate were reduced jobs would still be overseas for the cheap labor and no benefits….. Eventually it will be two classes….Rich or Poor….. Selling drugs will eventually be the number one industry but hold..even the Mexicans are taking that over in this country… Now my patriotic brothers and sisters…what do you do when your country doesn’t give a rYe ass about you????…. Grab some guns and overthrow the system…that’s what I say.
Former Republican
August 3rd, 2011
3:20 pm
The REAL REASON the economy is so messed up is because of 8 YEARS OF BUSH, JR.!!! That’s the problem. The budget was balanced when Clinton was President…then here comes Bush! And you wonder why I’m a former Republican….no need to!
brion
August 3rd, 2011
3:28 pm
Clinton was just lucky to be present at the time because of the tech boom…….Saddle Huessein could have been president at the time and had a surplus…
Truth
August 3rd, 2011
3:30 pm
Former Republican @ 3:20pm:
Since Bush unbalanced the budget as you say and you are a “former Republican”, dare I ask are you a Democrat now?
Obama makes Bush look fiscally responsible.
brion
August 3rd, 2011
3:32 pm
Actually Obama looks more like the twin brother of Bush 2…except with a tan.
Nostradamus
August 3rd, 2011
3:55 pm
We are all victims of Bush/Obama economic policies.
I see martial law declared in 2015 following the total collapse of the American system of economics and governance. There will be rioting, violence and food shortages. The repercussions will be felt worldwide and there will be nothing that even the World Bank or United Nations can do.
Only Divine Intervention can intercede.
sirwinston19
August 3rd, 2011
3:58 pm
Many counties are facing a shortfall in tax revenue; and yet, they raise taxes. No jobs mean that tax revenue will continue to fall. Well, many of us know that these counties have stock-piles of funds they have not used and trying to pile on more monies from tax payers. Who ever give them this rights needs to remember them when election comes again., they have bleed many of us to death with taxes that we just don’t have the funds to pay. You would think they would want to help keep some sense and some feelings toward many of us who are unemployed. I guess not; but wait when they have jo job…and we shall see how they feel about their taxes being raised. Bottom line, they already have the money they need. They just want more of it!
TruthBe
August 3rd, 2011
4:27 pm
The problem is too much federal,state,county,and city government Obama’s economy (obamanomics 101) destroy capitalist by over spending and bankrupting the government, and then blame someone else (professional liars = democrats) for the mest that your policies, laws, restricitions, and actions created. Dirty Harry Reid and ChuckU Schumer are aready bragging that they are going to raise taxes on EVERYBODY not just billionaires and millionaires. Personal and Corporate taxes are too high that’s one big reason that the USA is not competitive any longer.
Point/Counterpoint
August 3rd, 2011
4:36 pm
TruthBe – “Personal and Corporate taxes are too high that’s one big reason that the USA is not competitive any longer.”
Right, and the fact that American workers will not work under the conditions as described below has nothing to do with it. But hey, maybe you can take the lead and agree to work just like the overseas employees.
““Pan Zhongwang, a 55-year-old steel polisher, is a typical Zhenhua worker. He arrives at 7 a.m. and leaves at 11 p.m., often working seven days a week. He lives in a company dorm and earns about $12 a day.
“It used to be $9 a day, now it’s $12,” he said Wednesday morning, while polishing one of the decks for the new Bay Bridge. “Everything is getting more expensive. They should raise our pay.” “
No Tax is Fair
August 3rd, 2011
5:04 pm
How about the 52% of American workers that pay ZERO income tax?
Everyone should be contributing !
Really?
August 3rd, 2011
5:05 pm
Point/Counterpoint
August 3rd, 2011
4:36 pm
Your tired and overused story about the 55 year old bridge polisher, does not do anything to refute TruthBe’s statement concerning taxes. By hey, maybe you tugged at his emotions by citing one individual’s sad story.
Vinnisha
August 3rd, 2011
5:11 pm
As a shareholder in a couple of the companies you named above Henry I’m all for downsizing if they can get the job done with fewer bodies.
The hard reality is that American businesses have figured how to do more with less. And women keep downloading babies like nothing’s changed.
American
August 3rd, 2011
5:12 pm
We the sheeple …deserve everything we are getting
Where else could a smooth-talking community organizer who never created a job in his life get elected to the most powerful position on the planet.
It is
August 3rd, 2011
5:12 pm
“…How about the 52% of American workers that pay ZERO income tax?..”
This is why Obama and Libs get elected. The moocher vote.
PR
August 3rd, 2011
5:45 pm
The repbulicans said that tax cuts for the rich would bring new bjos…LIES. R
PR
August 3rd, 2011
5:46 pm
REPUBLICANS LIES….NO NEW JOBS, MORE LAYOFFS, BUT THE TAX BREAKS FOR THE RICH AND BIG BUSINESS CONTINUE. BOEHNER, MITCHELL AND THE REST OF THE REPUBICANS IN CONGRESS NEED TO TARRED AND FEATHERED.
Cindy
August 3rd, 2011
5:57 pm
NativeSon 71 – I was just reading through the post and saw yours. I just wanted to let you know that I wish you the best and am sure you will find an even better job soon. You sound like a very intelligent person and I feel as though your former company was the biggest loser. Good luck and keep your head held high.
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August 3rd, 2011
6:00 pm
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Small Business Owner
August 3rd, 2011
6:11 pm
Yeah, tax breaks cause job losses.
You are obviously a product of government education.
Your check from Obama is in the mailbox.
Working Class
August 3rd, 2011
7:05 pm
@ Point/counter: Why should the $15K yearly worker serve up 80 hours a week when the CEO’s are only putting in about 20 while the other 20 is spent hobknobbing with the other rich at expensive, company paid 3 hour lunches at the Yacht Club or the Friday afternoons spent on the golf course under the guise of “team-buliding”. My ass.
Liz
August 3rd, 2011
7:08 pm
Since there are so few jobs , people have the feeling that Healthcare is the answer. With Hospitals and nursing homes closing where will everyone go? Soon Healthcare will be saturated. Also cuts to Medicaid/Medicare won’t help. We sure can’t go to the Moon!!!!!!!!!
taxes
August 3rd, 2011
10:25 pm
taxes on rich people need to be a lot higher—I’m tired of my government benefits getting reduced and rich people are paying low taxes. They should be paying 60-70% in taxes so other people can get enough money from the government to pay all their expenses. Obama needs to raise taxes now—the racist tea party needs to be outlawed.
el segundo
August 3rd, 2011
10:31 pm
the bad economy should be blamed on george bush and all the big corporations taking all the good jobs overseas to pay lower wages. This should be illegal—companies should be forced to hire union workers at high wages. I’m tired of this.
Why I Sold Bank of America Stock -- 3 Lessons in my 30% Loss | InvestorPlace
August 4th, 2011
5:31 am
[...] less than 1%, according to GDP numbers released this week. Unemployment remains high, and an ugly report from Challenger, Gray & Christmas indicates a 60% surge in layoffs to put us at a 16-month high for job cuts in July. Stocks are [...]
Tamika
August 4th, 2011
10:04 am
More massive failure for Obama. Unemployment is on the rise. Mass layoffs are up again. Housing in still falling. Small businesses are discouraged and fearful.
Yesterday Obama announced that now he would turn his attention to jobs. Isn’t that the third such announcement?
He will never be able to produce jobs becase his socialist ideology makes government and unions the center of everthing he does.
more unions!
August 4th, 2011
11:00 am
rich, greedy republicans from the tea party are destroying the working man by sending all these jobs overseas! The government needs to ban overseas imports for a few years and more unions are needed to protect wages and benefits of the working class. If there are enough unions, they can threaten strikes if needed to get the money and benefits they want! I’m tired of all this republican greed!
Homer
August 4th, 2011
11:55 am
“Security vendor McAfee published a detailed report on Tuesday about a hacking group that penetrated 72 companies and organizations in 14 countries since 2006 in a massive operation that stole national secrets, business plans and other sensitive information.”
Why aren’t we talking about this? China is at the center of this scandal. American corporations are falling all over themselves to penetrate the Chinese market. My observation is that China can steal the products, dupe them and dump them on the market for a fraction of the price. What do they really think that the Chinese are going to buy from the US in the long term? A couple of months ago Apple busted a bootleg Apple retail store in China that was so authentic that the employees had no idea that they weren’t working for Apple. We’re a bunch of chumps for selling ourselves down the river thinking that China is going to keep us afloat.