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We are back to Dec. 2007 in fewest job losses.

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January 06, 2010 – Comments (1)

U.S. job cuts shrink to two-year low in DecemberOn Wednesday January 6, 2010, 7:34 am

NEW YORK (Reuters) - Planned layoffs at U.S. firms fell in December to their lowest level in two years as economic activity began picking up steam, capping off the worst year for corporate job cuts since 2002, a report on Wednesday showed.

Employers announced 45,094 planned job cuts last month, the fewest since December 2007, according to global outplacement consultancy Challenger, Gray & Christmas, Inc.

That marked a 73 percent decline from 12 months ago, when 166,348 job cuts were reported, the report showed.

Over the course of 2009, employers announced plans to cut 1,288,030 jobs, the most since 2002, though the pace of layoffs fell by 56 percent in the second half of the year.

"It definitely was a bi-polar year when it came to downsizing," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

"In the first half of 2009, the economy was reeling from the ongoing housing market collapse, bank failures and further deterioration of the country's manufacturing base," he said. "Somewhere in the second or third quarter, we turned a corner and now, as we begin 2010, there are promising signs of improvement."

(Reporting by Steven C. Johnson; Editing by Chizu Nomiyama)

1 Comments – Post Your Own

#1) On January 06, 2010 at 11:21 AM, amassafortune (29.67) wrote:

Progress on reduced job losses is good news, but top-heavy public sector jobs continue to grow in relation to the thinning base of private sector jobs. Friday's government employment numbers may show job growth and November's -11,000 number may be revised to a positive number. As the markets celebrate two months of positive jobs growth Friday, remember that those seasonally and birth/death adjusted totals are not the wealth-creating private sector jobs the U.S. needs to maintain the economy. 

Today's ADP jobs report of 84,000 private sector jobs lost in December indicates a continued shrinking of the tax base.   

The U.S. continues to show employment trends that must abate soon. Ford may have the model needed for today's worldwide competition. Buyout high-cost labor and bring in new workers at a $14/hr starting wage. While opening jobs to new workers, this also closes the competitive gap with foreign manufacturers that pay $30/hr. The company's survival prospects are improved and the retiree benefits have a better chance of being maintained.

Monsanto announced a quarterly loss today due to competition.

P&G is developing cheaper brands to compete with store brands that thrive in today's market.

The gravy days for U.S. business are over. After being an economic point of discussion for decades, worldwide competition is now in full force. If you make 10 times what someone else makes anywhere in the world, and you are not 10 times more productive, a pay cut or productivity increase is needed to survive. Even teachers, surgeons, and dozens of other occupations thought to be "safe", must understand the technology that will expose your profession to worldwide competition is now in development.    

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