Jobless rate bolts to 8.1 pct., 651,000 jobs lost

[Dragunov]

Jobless rate bolts to 8.1 pct., 651,000 jobs lost

By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer – 35 mins ago

WASHINGTON – The nation's unemployment rate bolted to 8.1 percent in February, the highest since late 1983, as cost-cutting employers slashed 651,000 jobs amid a deepening recession.

Both figures were worse than analysts expected and the Labor Department's report shows America's workers being clobbered by a wave of layoffs unlikely to ease in the coming months.

"There is no light at the end of the tunnel with these numbers," said Nigel Gault, economist at IHS Global Insight. "Job losses were everywhere and there's no hope for a turnaround any time soon."

February's net job loss came after even deeper payroll reductions in the prior two months, according to revised figures released Friday. The economy lost 681,000 jobs in December and another 655,000 in January.

Employers are shrinking their work forces and turning to other ways to slash costs — including trimming workers' hours, freezing wages or cutting pay — because the recession has eaten into their sales and profits. Customers at home and abroad are cutting back as other countries cope with their own economic problems.

Since the recession began in December 2007, the economy has lost 4.4 million jobs, more than half of which occurred in the past four months.

With employers showing no appetite to hire, the unemployment jumped half a percentage point from 7.6 percent in January. That was the highest since December 1983, when the jobless rate was 8.3 percent.

All told, the number of unemployed people climbed to 12.5 million. In addition, the number of people forced to work part time for "economic reasons" rose by a sharp 787,000 to 8.6 million. That's people who would like to work full time but whose hours were cut back or were unable to find full-time work.

If part-time, discouraged workers and others are factored in, the unemployment rate would have been 14.8 percent in February, the highest on record.

The pain hit blue- and white-collar workers, those without a high-school diploma and those highly educated. The jobless rate for people with a bachelor's degree or higher jumped to 4.1 percent last month from 3.8 percent in January. That's the highest on records dating to 1992.

Meanwhile, the average work week in February stayed at 33.3 hours, matching the record low set in December.

On Wall Street, stocks regained some ground as many market participants had braced for even grimmer unemployment data. The Dow Jones industrial average added about 25 points in morning trading. Broader indexes were mixed with the Standard & Poor's 500 up slightly, while the tech-heavy Nasdaq composite slid a bit.

Job losses were widespread last month.

Construction companies eliminated 104,000 jobs. Factories axed 168,000. Retailers cut nearly 40,000. Professional and business services got rid of 180,000, with 78,000 jobs lost at temporary-help agencies. Financial companies reduced payrolls by 44,000. Leisure and hospitality firms chopped 33,000 positions.

The few areas spared: education and health services, as well as government, which boosted employment last month.

Disappearing jobs and evaporating wealth from tanking home values, 401(k)s and other investments have forced consumers to retrench, driving companies to lay off workers. It's a vicious cycle in which all the economy's negative problems feed on each other, worsening the downward spiral.

A new wave of layoffs hit this week.

General Dynamics Corp. said Thursday it will lay off 1,200 workers due partly to plummeting sales of business and personal jets that forced it to cut production. Defense contractor Northrop Grumman Corp., and Tyco Electronics Ltd., which makes electronic components, undersea telecommunications systems and wireless equipment, also are trimming payrolls.

The country is getting bloodied by fallout from the housing, credit and financial crises_ the worst since the 1930s. And there's no easy fix for a quick turnaround, economists said.

President Barack Obama is counting on a multi****ged assault to lift the country out of recession: a $787 billion stimulus package of increased federal spending and tax cuts; a revamped, multibillion-dollar bailout program for the nation's troubled banks; and a $75 billion effort to stem home foreclosures.

Even in the best-case scenario that the relief efforts work and the recession ends later in 2009, the unemployment rate is expected to keep climbing, hitting 9 percent or higher this year. In fact, the Federal Reserve thinks the unemployment rate will stay elevated into 2011. Economists say the job market may not get back to normal — meaning a 5 percent unemployment rate — until 2013.

Businesses won't be inclined to ramp up hiring until they are sure any economic recovery has staying power.

The economy contracted at a staggering 6.2 percent in the final three months of 2008, the worst showing in a quarter-century, and it will probably continue to shrink during the first six months of this year.

Given Friday's grim figures, Gault predicted the economy would probably shrink in the first quarter at a pace of at least 6 percent.

Fed Chairman Ben Bernanke told Congress earlier this week that recent economic barometers "show little sign of improvement" and suggest that "labor market conditions may have worsened further in recent weeks."
http://news.yahoo.com/s/ap/20090306/ap_on_bi_go_ec_fi/economy

[socom6]

Woot its 1982 again! But seriously this reminds me of the nasty recession of 1979 to 1983. I hope it dont get any wors than it is... my younger brother has been hearing rumours that they may lay off the IT managers at his work place.

[AgentX]

Woot its 1982 again! But seriously this reminds me of the nasty recession of 1979 to 1983. I hope it dont get any wors than it is... my younger brother has been hearing rumours that they may lay off the IT managers at his work place.
Merci beaucoup for bringing me this news. :fork:

[Laworkerbee]

Woot its 1982 again! But seriously this reminds me of the nasty recession of 1979 to 1983. I hope it dont get any wors than it is... my younger brother has been hearing rumours that they may lay off the IT managers at his work place.

I recently laid of our IT staff in New York and Chicago. My workload has almost doubled because of it :|

[LongShot]

I recently laid of our IT staff in New York and Chicago. My workload has almost doubled because of it :|


Lemme guess, there is a salary freeze in place too so you cant get a raise for all the extra work you are doing?

[Laworkerbee]

Lemme guess, there is a salary freeze in place too so you cant get a raise for all the extra work you are doing?

Actually, I took a %5 pay cut last month.

[LongShot]

Actually, I took a %5 pay cut last month.


That sucks Bee. My GF just took on the work load of two mid level management positions that got vaporized, with a salary freeze in place until 2010.

[Laworkerbee]

I'm doing okay, it hurt but I'll survive. What doesn't help is my taxes are going to go through the roof.

[LongShot]

I'm doing okay, it hurt but I'll survive. What doesn't help is my taxes are going to go through the roof.


nothings getting easier, thats for sure.

[Sufficient]

Are you guys working for small companies? Taking two other peoples workloads on top of the workload you already have, just because the company is too cheap for hiring the staff they need, seems a bit strange to me. Not sure how it works over there but here when the employment contract is signed by both parties, there is also an agreement on what work should be done. Big changes would require renegotation. Of course I understand that it might be good for the career to be loyal and all that, but come on... you want to die from stress?

[Albatross]

nothings getting easier, thats for sure.

aint that the ****ing truth, we can't get a contract now to save our lives. (I work as an executive recruiter) 3 months ago I could get 2 contracts in a few hours. We spent the past week between 3 of us trying to get 1 contract and couldn't find one. This thing is ****ed.

[StukaJr]

California hit over 10% a couple of days ago - I began working again but still haven't gotten my unemployment benefits from filing more than two months ago and it's impossible to get a live person on the phone to figure out where it snagged... I saw news footage in the factory that stamps and packs the EDD checks and it was rather disheartening - trucks worth of boxes full of enveloped checks leaving every week :|

It seems that employers accross the board are trying less with less approach, but going too small in the employee pool to still get the remaining jobs done...

[12oclock]

And I'm only 2.5 semesters from graduating college. This is ****ing stupendous! I heard Brasil's economy is booming maybe I'll relocate there for a job. ****, i don't know portuguese......NM :(

[commanding]

Definitions


Recession: When your neighbor loses his job


Depresion: When you lose your job


Recovery: When Obama loses his job







(it's a joke....get over it)

[Sufficient]

And I'm only 2.5 semesters from graduating college. This is ****ing stupendous! I heard Brasil's economy is booming maybe I'll relocate there for a job :roll:

I graduated in January 2009 :petting: Guess what, out of job. Although I am going for a job interview in a week. There's still a lot of positions to be filled even in these times. People retire, move, die, change jobs etc. Problem is there is several hundred people applying for every job. Can't imagine recruiters even trying to read all the applications. So it's like winning the Lotto.

[Laworkerbee]

Are you guys working for small companies? Taking two other peoples workloads on top of the workload you already have, just because the company is too cheap for hiring the staff they need, seems a bit strange to me. Not sure how it works over there but here when the employment contract is signed by both parties, there is also an agreement on what work should be done. Big changes would require renegotation. Of course I understand that it might be good for the career to be loyal and all that, but come on... you want to die from stress?

Do you really believe a company lays off long term employee's because it is cheap? I recently laid off men with families, it was painful for all involved but more so for them than I.

When the job market such as it is in California hits the 10% unemployment rate do you really think it's wise to puff out ones chest and demand a raise and renegotiation?

Do you even currently have a job to be making such comments?

[Sufficient]

Do you even currently have a job to be making such comments?

Well, I don't live in California. I live in a country where there is a law stating what should be in the employment contract, and what rights both parties have. So yeah, guess what, I made that comment because it makes perfect sense for me to not do the work of three people if not being paid to do it.

[ronnieraygun]

And I'm only 2.5 semesters from graduating college. This is ****ing stupendous! I heard Brasil's economy is booming maybe I'll relocate there for a job. ****, i don't know portuguese......NM :(

Do you look good in a thong?


I've heard it's pretty much global. People have been GTFOing from Dubai even.

I've been a lot more thrifty since last fall because of this (aldi's only, only generic pop, rarely eat out, cut back on the beer and smokes,etc )- I think we can all agree that it's going to get worse for us before it ever gets better. I just wonder about the "micro" effects from a job market like this - do people start screwing each other just to try and keep their job, etc. Every place I've seen is doing more with less but I have yet to see lower-middle managers acting like complete assholes because they are all in the same boat, too, I suppose.

[12oclock]

I graduated in January 2009 :petting: Guess what, out of job. Although I am going for a job interview in a week. There's still a lot of positions to be filled even in these times. People retire, move, die, change jobs etc. Problem is there is several hundred people applying for every job. Can't imagine recruiters even trying to read all the applications. So it's like winning the Lotto.

Ya, the only upside is I'm in one of 2 fields that will be in demand indefinately.....IT

[Laworkerbee]

Well, I don't live in California. I live in a country where there is a law stating what should be in the employment contract, and what rights both parties have. So yeah, guess what, I made that comment.

Every job worth its salt comes with a contract, I signed four when I took this job a few years ago.

So once again I'll ask you. When layoffs are common and the company is taking hits (in our case a 288 million dollar hit out of a billion dollar profile) do you really think it is wise to puff out your chest and demand renegotiation of your contact and a raise for taking up the slack of those laid off?

This is the real world, not a college campus.


Ya, the only upside is I'm in one of 2 fields that will be in demand indefinately.....IT

I work in IT as well and I wish you luck.

[ronnieraygun]

it makes perfect sense for me to not do the work of three people if not being paid to do it.

It would make sense to me except that's part of the reason why Americans are arguably the most productive workers. It's also a very competitive society if you really "want it;" if you don't want to pick up the proverbial shovel, there are at least three who will kill for the mere chance to have your job.

[commanding]

you guys who have or will loose your job in the USA during this downturn....it can be, or is one of the most stressful things that can happen in a persons life. Been there done that. No real words of wisdom, keep looking for a job, make the best you can of it...know that it will turn around eventually. Be aware, that the stress of loosing your job, in this work oriented society, with the most stress on men with stay at home wifes and kids and mortagages, ....can mess your health up big time.

When you get back to work somewhere, remember, how precious a job is, how secure you feel with a job, and keep those thoughts in your head, and go that extra mile for your employer...even look for a job that has more security, at the expense of promotions or perks.
my 2 cents.

[AgentX]

^Words of wisdom and experience, sire! Wish you a very healthy life. :)

[ronnieraygun]

you guys who have or will loose your job in the USA during this downturn....it can be, or is one of the most stressful things that can happen in a persons life. Been there done that. No real words of wisdom, keep looking for a job, make the best you can of it...know that it will turn around eventually. Be aware, that the stress of loosing your job, in this work oriented society, with the most stress on men with stay at home wifes and kids and mortagages, ....can mess your health up big time.

When you get back to work somewhere, remember, how precious a job is, how secure you feel with a job, and keep those thoughts in your head, and go that extra mile for your employer...even look for a job that has more security, at the expense of promotions or perks.
my 2 cents.

I could not agree more. I've been through it already a few times and even without big commitments it still is a challenge. The only good thing to say about it is that you can do OK if you've saved enough cushion for emergencies, you always come out eventually and your perspective about life in general might change for the better.

[12oclock]

you guys who have or will loose your job in the USA during this downturn....it can be, or is one of the most stressful things that can happen in a persons life. Been there done that. No real words of wisdom, keep looking for a job, make the best you can of it...know that it will turn around eventually. Be aware, that the stress of loosing your job, in this work oriented society, with the most stress on men with stay at home wifes and kids and mortagages, ....can mess your health up big time.

When you get back to work somewhere, remember, how precious a job is, how secure you feel with a job, and keep those thoughts in your head, and go that extra mile for your employer...even look for a job that has more security, at the expense of promotions or perks.
my 2 cents.


You're dead on. I've seen people like my dad through similar circumstances. Hell, I'm not even done with school yet and it stresses me out daily because of the probability of my getting the job with the salary I need to pay off my college loans is dim at best.

[Parx400]

Well, I don't live in California. I live in a country where there is a law stating what should be in the employment contract, and what rights both parties have. So yeah, guess what, I made that comment because it makes perfect sense for me to not do the work of three people if not being paid to do it.


Those kind of contracts create no flexablity in an organization. Thats how state of CA government is run. When you can move people around to other job functions the organization as a whole works much better. You can also keep more people on the payrol as well. Look at Toyota. They have much fewer layoffs because Emplyee A that does Task A can go do Task B with Emplyee B since there is a demand there. When labor is too ridgit Empyee A would be fired and some one else hired to do the additional work needed at Task B.

[foxtrot023]

I work in stock and bond markets for a broker dealer and about 50% of my previous contacts are gone. Likewise banks like Lehman, Wachovia, ML, Stanford, etc are either bankrupt, bought or indicted (going to). We are literally shell shocked in the industry. Well, at least I still have a job, even if I am making about 30% less than last year.

.....and buckle up because we still got months to go before we see the bottom

[12oclock]

While it's kind of out of context, let me ask all the pros here something. I have to take out one last big student loan with Chase to hold me over until I graduate. I was waiting for my mom (co-signer) to finish her taxes and get her refund back to pay off some credit cards to improve my chances of getting lower interest rates and ultimately to prevent Chase from having any reason/s to disapprove the loan. I took out loans with them last year and never had a problem getting approved. Even took one out in December and got approved okay. My question is: If the economy is only getting worse, Should I apply for the loan like real soon or is waiting until my mom pays off some credit in say april or may the better decision? I'm kind of afraid That like alot of other banks, Chase will just sporatically hault their Student Loan program and then I'm SOL, which could result in my not graduating.

Sorry to hijack the thread; just seems to be alot knowledgable people on here who can provide some good insight, thanks.

[Abolith]

6 months ago I had three big contracting jobs now I have a hard time getting anyone on the damn phone. The job landscape is going to be changed by this recession, thats one reason why I am re-tooling for a different career, hopefully i'll be done right as the economy starts picking up....I hope.

[WarDancer]

you guys who have or will loose your job in the USA during this downturn....it can be, or is one of the most stressful things that can happen in a persons life. Been there done that. No real words of wisdom, keep looking for a job, make the best you can of it...know that it will turn around eventually. Be aware, that the stress of loosing your job, in this work oriented society, with the most stress on men with stay at home wifes and kids and mortagages, ....can mess your health up big time.

When you get back to work somewhere, remember, how precious a job is, how secure you feel with a job, and keep those thoughts in your head, and go that extra mile for your employer...even look for a job that has more security, at the expense of promotions or perks.
my 2 cents.

True. I lost a job of 18 years that i loved dearly. The following two weeks I was clinically depressed, suicidal and couldnt even taste my food!! It lasted four months until I found a bottom level job just to stay busy. Eventually I found another job in the same field, less pay (alot less pay). Not entirely happy but everytime I hear of job losses I thank God for what I have.

[Flagg]

Here's a great tool for getting a more specific and visual understanding of where we are at today in the US in regards to unemployment:

http://www.nytimes.com/interactive/2009/03/03/us/20090303_LEONHARDT.html

[sinophile]

Are you guys working for small companies? Taking two other peoples workloads on top of the workload you already have, just because the company is too cheap for hiring the staff they need, seems a bit strange to me. Not sure how it works over there but here when the employment contract is signed by both parties, there is also an agreement on what work should be done. Big changes would require renegotation. Of course I understand that it might be good for the career to be loyal and all that, but come on... you want to die from stress?

I actually wish you worked for me so I could fire you. Nice attitude.

[shocker1]

Here's some information on one example of many bright spots around the country. There are sectors of the economy and whole regions of the country where you can get a good job. I will speak for the Chattanooga area as there are many opportunities here to be had.

There are many new industries coming on line here. Volkswagen is building a plant in Chattanooga as many know injecting a billion by themselves. Another billion dollar investment by Wacker, a German solar energy company who are locating a plant near. Expansion of TVA in the nuclear industry was in the works but now is in jeopardy as we have a waste issue. Companies related to serving these core industries will follow. This will spread creating jobs in unrelated sectors. This can be seen in the building of homes and apartments around town.

We have had some lay offs around but as long as the world does not collapse into trade and barter we will be ok.. If you have a good education or marketable skill a move to Chattanooga for those considering a move.