Laid Off Nation

September Unemployment

Jacob — Fri, 09 Oct 2009 19:51:46 +0000

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)

Jobless Recovery

Jacob — Thu, 17 Sep 2009 20:36:19 +0000

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:

A jobless recovery or jobless growth is a phrase used by economists to describe the recovery from a recession which does not produce strong growth in employment. The phrase originated in the early 1990s in the United States, to describe the economic recovery at the end of President George H.W. Bush’s term; it came back into use during the early 2000s.

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

Reduction in Force

Jacob — Thu, 17 Sep 2009 06:30:14 +0000

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.

Where have I been?

Jacob — Tue, 15 Sep 2009 04:37:32 +0000

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.

BAE Systems Layoffs

Jacob — Mon, 03 Aug 2009 23:46:51 +0000

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.

Cisco Layoffs

Jacob — Mon, 20 Jul 2009 18:59:55 +0000

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.

Crocs Layoffs

Jacob — Fri, 17 Jul 2009 22:42:18 +0000

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.

McGraw-Hill Layoffs

Jacob — Thu, 16 Jul 2009 16:31:32 +0000

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.

Smith and Hawken Going out of Business

Jacob — Tue, 14 Jul 2009 17:18:47 +0000

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?

Texas Workforce Commission

Jacob — Mon, 13 Jul 2009 18:20:20 +0000

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.