Well, there is good news and bad news from September’s unemployment numbers. The bad news is that unemployment is still getting worse, but most people expected that. The good news is that the pace at which unemployment is worsening has reversed.
Bad a couple months, I made a prediction that this rate would decrease but we would still be seeing negative job growth. I was off the market a bit about how quickly the timing would work out but most of the analysis has played out so far.
“September’s employment decline was the smallest since July of 2008 and employment losses have diminished significantly over the last two quarters. Nevertheless, employment, which usually trails overall economic activity, is likely to decline for at least several more months, with losses continuing to diminish.“
Source: ADP National Employment Report (September)
Well, let’s hope the predictions are wrong but I keep hearing a lot about the prospects of a jobless recovery, as I alluded to in the previous post. What is a jobless recovery?
According to Wikipedia:
Basically, it means an economic recovery won’t come to the rescue of unemployed workers. This is probably due to technology replacing jobs, movement to a service economy, and other structural shifts. Another factor to consider is that outsourcing jobs takes away positions in much the same way technology reduces jobs.
Irregardless of the cause, this has a couple practical applications:
- Those with jobs should save a couple extra months worth of safety funds
- Those looking for jobs may need to spread a wider net and look for jobs outside their previous industry/work experience – get creative
So a reduction in force (a “RIF”) is basically just a layoff or eliminating of a position. While you can always count the number of humans laid off at companies across America, it is important to consider that eliminated positions could make our recovery efforts even worse.
For example, a company that lays off 2 employees but reduces 8 other positions could be more detrimental to overall employment 6 months from now than a company with 5 laid off employees. There is no injured human, no severance pay, no lawsuits, and no tearful goodbyes. That is why many companies choose reduction of positions. As far as I know, that is how the federal government handles things as well. It is a good alternative to layoffs but it takes time and I am not convinced its long-term effects are any better for the economy.
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I would just like to apologize to my readers for my recent absence over the past month. I’ve been moving to a new city and preparing for the rigors of continued education in graduate school. I should be able to not only keep up my previous posting levels but break some news from here on out. Please stay tuned, spread the word, and pass on any tips as you get them.
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According to the Anniston Star, BAE Systems will layoff up to 259 workers in September. BAE Systems is one of the largest defense contractors both in the United States and globally. A spokeswoman for the company stated that even with the layoffs, there will still be 200 more workers at the plant than in 2003.
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According to the Globes, Cisco has announced it will layoff 2000 employees worldwide. Out of those 2,000 position reductions, 35% or 700 layoffs will be in California. The company is clearly trying to cut costs as revenue fell drastically in the first quarter of this year along with many technology companies.
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I know them, you know them. Everyone knows them! Crocs haven’t been around that long but they’ve sold millions and millions of pairs. Yet, the economy has hit the unique shoe manufacturer very hard. According to CBS News, losses from last year ($185 million) exceeded the profits of 2007.
How do you lose $185 million making those shoes???
Well, you expand really quickly and hire a ton of employees it seems. According to CBS News, the company is laying off one in three employees. How many employees are being fired in total? 2,000. Well, that explains it.
Hopefully the weekend will bring us some better news on the layoff front.
Recently, there has been a lot of rumors about McGraw-Hill trying to sell BusinessWeek magazine. Right now the weekly business magazine is losing money so the deal could be for only $1. McGraw-Hill would get $1 and the purchaser would pay the magazine’s millions of dollars in debt.
The book publishing company just released a press release about a group to help students learn 21st century skills. Why does this matter? Well the last paragraph steathily describes the 500 layoffs incoming. According to the press release, there will be a cost of nearly $24 million “…consisting primarily of employee severance costs related to a workforce reduction of approximately 550 positions across the Corporation.”
Currently there is no evidence to suggest these will be BusinessWeek layoffs. They will most likely be corporate layoffs at the giant book publisher. I hope BusinessWeek, one of my favorite publications, can be saved along with the other quality publications out there.
Sometimes layoffs hit more than 10% of the company. Smith & Hawken, an upscale gardening store, will close after being in business for 30 years. There are over 50 Smith & Hawken stores across the United States in over 20 different states. According to the Seattle Times, the “Going-out-of business sales began [last Wednesday].”
There are thousands of companies which have been forced into closing during this recession. As a result, 100% of the employees are laid off and forced to compete with each other for other job openings in the same fields. Time can be of the essence when you’ve been laid off and need a new job in a similar line of work. Give yourself an advantage and get your resume updated now, just in case you need it quickly.
If you were laid off today, could you start finding your new job tomorrow?
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Good news for our Texas visitors.
The battle against unemployment will be fought primarily through our state governments. The federal government helps fund programs such as unemployment insurance and the federal government is the largest employer but those are its two main contributions. Many of our programs and daily activities are influenced by city, state, and local government policies and officials.
In Texas, the Texas Workforce Commission is receiving over $218 million dollars in stimulus money. Approximately $6 million will be used for programs to train and reskill workers. These workers will find new jobs in green, renewable energy industries. This comes from an article by MyHighPlains if you want to read more about the Texas Workforce Commission program.
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AIG is planning to pay over $2 million to executives next week. There was some public backlash but I imagine there will be a lot more on the way. AIG is stuck between a rock and a hard place with bonuses it has previously promised.
According to CNN, AIG owes approximately $235 million in bonuses to employees in the AIG Financial Products division. This is the division that many credit as a major contributor to the various credit problems which have led to the recession.
This is a very bad position to be in for AIG. It appears contracts have obligated them to pay out over $200 million to executives in the Financial Products division. However, the public is not going to be happy with these payments. So will AIG choose to forgo the payments? If they do, there would likely be many lawsuits and a drawn out process. It could take years of this issue coming up and they could have to pay the same bonuses or even more at the end.
Either another PR headache or a legal nightmare. It will be interesting to see how AIG and the administration play this. Perhaps a voluntary reduction would be the best soltuion. All of the employees agree to receive a quarter of their bonuses, waive the right to sue, and the remainder goes back to taxpayers. Many people would hate to pay those bonuses but there are few solutions short of a compromise.
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Are you eligible?
What are the requirements to file for unemployment benefits? Well, as far as I know, these requirements can vary depending upon the state. In general, you must have worked for one year in duration. This work would have been a full-time position and not a contractual or freelance position. You must have been fired or laid off. Often times you are eligible for unemployment if you were forced into resigning due to a hostile work environment.
States manage the programs which is why eligibilty requirements can vary by state. Unemployment has traditionally paid benefits for 13 weeks but recent legislation may have changed the duration and monetary payoff of unemployment. In many cases you will have to actively look for a new job so get on top of the job search immediately.
I am not a lawyer or a professional qualified to advise about unemployment. You should contact your state’s unemployment office for more information. The above information was my opinion and I make no claim that it is 100% accurate. Please let me know if there are any updates/changes to make.
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Rules of Civilty
After reading a poignant op-ed in the New York Times, I thought I would share some advice from none-other than George Washington. One of my favorite presidents, George Washington was a great, respected leader. We could use more of those in this day and age.
The Rules of Civility and Decent Behavior in Company and Conversation was created by George Washington while he was still in school as a writing exercise. I will post the first ten, but you can find the rest of the 110 rules here. Perhaps they will help when you are seeking a job if your civility knowledge need refreshing.
- 1st Every Action done in Company, ought to be with Some Sign of Respect, to those that are Present.
- 2d When in Company, put not your Hands to any Part of the Body, not usually Discovered.
- 3d Shew Nothing to your Friend that may affright him.
- 4th In the Presence of Others Sing not to yourself with a humming Noise, nor Drum with your Fingers or Feet.
- 5th If You Cough, Sneeze, Sigh, or Yawn, do it not Loud but Privately; and Speak not in your Yawning, but put Your handkercheif or Hand before your face and turn aside.
- 6th Sleep not when others Speak, Sit not when others stand, Speak not when you Should hold your Peace, walk not on when others Stop.
- 7th Put not off your Cloths in the presence of Others, nor go out your Chamber half Drest.
- 8th At Play and at Fire its Good manners to Give Place to the last Commer, and affect not to Speak Louder than Ordinary.
- 9th Spit not in the Fire, nor Stoop low before it neither Put your Hands into the Flames to warm them, nor Set your Feet upon the Fire especially if there be meat before it.
- 10th When you Sit down, Keep your Feet firm and Even, without putting one on the other or Crossing them.
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Alaska State Unemployment
In post number 2 out of this state unemployment series, I have combined some data on unemployment in the state of Alaska. Alaska currently has an unemployment rate of 8.4%. Compare this to the highest Alaska unemployment rate of 11.5% in Jul. 1986 and the lowest rate of unemployment (5.9% in Sept. 1999).
Alaska Unemployment Website
http://labor.state.ak.us/esd_unemployment_insurance/home.htm
Alaska Unemployment Office
Employment Security Division
Unemployment Insurance Program
PO Box 115509
Juneau, AK 99811-5509
NOTE: In many states you handle the entire process online and not in person. I have made my best effort to find the addresses of unemployment offices but sometimes the websites are vague with specifics. Check online before visiting the office in person. I hope this lengthy series can help the residents of Alaska with unemployment. If you live in another state, check back in a couple days for that post!
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Value of Education
What is the value of a college education? Overall, the more education you have, the less likely you are to be laid off or find yourself unemployed. Now may be the best time to get a new education or jump into a new career.
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