GM to cut 375 jobs in Windsor

Mar 30, 2007 09:48 PM Canadian press
WINDSOR, Ont.–General Motors of Canada will be handing out indefinite layoff notices to 375 workers at its transmission plant in southwestern Ontario next week.
The layoffs, to affect 288 production workers and 87 skilled trades at the Windsor plant, are set to take effect on July 2.
GM Canada spokesman Stew Low said from Oshawa, Ont., that the layoffs were a result of the company's decision to end production of the Saturn Ion compact, built in Spring Hill, Tenn., which used transmissions built in Windsor.
Daily production is dropping to 3,000 transmissions per day, down from 4,000 per day, but the Windsor plant will continue to have three shifts, he said.
Bill Reeves, president of CAW Local 1973, said Friday the layoff notices are very troubling but held out the possibility they will be cancelled if sales pick up or new work is allocated to the plant, which employs about 1,300 people.
"Last year the same thing happened," Reeves told Windsor radio station CKLW. "We were supposed to have it last year but sales picked up and it was cancelled. We hope that'll happen this time."
The Windsor transmission plant also produces transmissions for models of the Chevrolet Cobalt and Malibu, Pontiac Pursuit, Saturn Vu and Aura. Other transmissions are built for export to China.
General Motors Corp., the Canadian company's U.S. parent, is undergoing a massive restructuring of its North American operations that includes more than 34,000 blue-collar workers taking buyouts or early retirement offers.
Troy Clarke, president of GM's North American operations, said last November that the company was "only beginning" a transformation that started in 2005.
Still the world's biggest automaker, General Motors has seen its share of the U.S. market eroded over the past decades from 50 per cent to about 25 per cent, with Asian-based automakers such as Japan's Toyota and Honda making major gains during the same period.
Low said that the North American-built Saturn Ion is being replaced by the Saturn Astra, built in Germany by GM's Opel division. The car is based in the Opel Astra, which has been successful in Europe, he said.
Apart from the Windsor transmission plants, GM doesn't plan any layoffs at its Canadian operations, Low said.
"Actually, we've been fortunate in Canada. The vehicles we build here and the components that we build here have had strong demand," Low said.
In Oshawa, where GM has its biggest Canadian manufacturing operation, the company assembles several models of cars and two full-size pickup trucks.
"Oshawa has two car plants. The one plant has had a little bit of what we call down time, where you send people home for a week. But the other plant has been running three shifts plus a bit of overtime. So it's been pretty good here as strength of our manufacturing business," Low said.
In the Oshawa truck plant, the company makes Chevrolet Silverado and GMC Sierra. One of the car plants makes the Chevrolet Impala and Buick Monte Carlo. The other builds the Buick LaCrosse and Allure and the Pontiac Grand Prix.

Florida Unemployment Rate Remains The Same

3.3% Rate Is Below The National 4.5% Rate

(CBS4) TALLAHASSEE The Agency for Workforce Innovation said Friday that Florida's unemployment rate in February remained at 3-point-3 percent for the fourth straight month.The state's figures were below the national unemployment rate of 4.5 percent and the lowest of the nation's 20 most populous states.

Although the state has recorded 54 straight months of job growth, there were 301-thousand Floridians unemployed last month out of a civilian labor force of just over 9-million.

Walton County in the western Panhandle had the lowest unemployment, with Monroe and Liberty counties close behind.Madison County east of Tallahassee had the highest unemployment rate, much of it blamed on the effects of a manufacturing layoff.

"Spring Hill GM Plant To Cease Production, Overhaul Facility"

Production will grind to a halt at the General Motors plant in Spring Hill later this week. As of Friday, 2,400 employees will be without a job when the plant ceases manufacturing to turn its attention to re-tooling. Most of the laid off workers will receive the bulk of their pay during the layoff. As a whole, workers don’t seem to upset about it. GM Executives held a private meeting at the plant Thursday where they told the 2,400 employees they would be laid off from anywhere between 12 and 18 but be paid 83% of their salary during the layoff. The employees were also assured they would ...have a job when the plant reopens in mid-2008. To help with the overhaul, 1,200 employees will stay on. The nearly seven million square foot facility is expected to be down for about a year for the overhaul that will change the plant from a Saturn plastic-based plant to a GM heavy metal plant. The new facility will reportedly build a Cross-Over that fits six passengers, similar to the Buick Enclave. Officials said the car will function as an SUV but drive as smooth as a Cadillac. The plant will also be constructed in a way so it can build any GM product so if, for instance, one vehicle isdiscontinued, the plant will be ready to switch up and build a new model. It has been nearly 20 years since the General Motors plant opened in spring hill to manufacture the newly introduced Saturn.

Layoff notices go out at Texarkana tire plant

Employees at Texarkana's Cooper Tire plant have received notice that layoffs -- which were announced last year -- will begin this May.
Workers have received letters with 60-day notices of layoffs. The layoffs will be effective May 26, officials said.
Last September, Cooper Tire announced it planned to convert Texarkana's plant into a "flex plant" and lay off at least 400 employees.
Company officials said the layoffs might not be that extensive because of market changes and attrition at the plant.

April, 2007

I just finished the April 9, 2007 issue of BusinessWeek and if you haven't read it, see if you can access it online or get an issue. The first story in the News&Insights column on Page 28, the first major story in the issue is entitled, "Where Are All the Workers? Companies Worldwide are suddenly scrambling to manage a labor crunch".

Cheap labor is running out as the costs of talent worldwide are increasing.

Here are some statistics from the article:

82% of companies in Mexico are having trouble filling jobs
61% in Japan
41% in the US
36% in Canada
31% in Europe
19% in China
9% in India (The figures in India are funny--turnover in India happens so quickly that if employers need to fill a job, they'll seduce someone from a competitor).

Computer programmers in Bulgaria and network professionals in Romania are in short supply.

Lack of labor is the second biggest threat to the world economy (the first is terrorism of any sort). We are in an era where the next generation of workers in most countries does not meet the skill level of what employers are looking for.

For your firm to compete, you can train new hires in what is missing and partner with schools and universities to improve the curriculum to meet the demands of industry (personally, I believe less media influence and more hard work is a good starting place for kids but that's another conversation).

What is in demand?

Everything!

Sales people
Technology professionals
Factory workers
Accountants
Plumbers
Electricians
Lab workers

It almost doesn't matter what the skill is--firms need it.

We are almost at the point where wages are going to have to take off. After all, with a finite supply, wages will start to take off after a 6 year slump.

I encourage you to start getting creative with your retention and recruiting programs and create a public image or brand for your firm to make it an employer of choice.

More about this again soon.

Circuit City targets better-paid workers for layoff

A new plan for layoffs at Circuit City is openly targeting better-paid workers, risking a public backlash by implying that its wages are as subject to discounts as its flat-screen TVs. The electronics retailer, facing larger competitors and falling sales, said Wednesday that it would lay off about 3,400 store workers — immediately — and replace them with lower-paid new hires as soon as possible. The company will lay off 33 workers in eight St. Louis area stores. The laid-off workers, about 8 percent of the company's total work force, would get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said.

Analysts and economists said the move is an uncertain experiment that could backfire for the chain. They say morale could sink and customers could avoid the stores. Also, knowledgeable customer service is one of the few ways Circuit City can tackle competitors that include Wal-Mart Stores Inc., they say. "This strategy strikes me as being quite cold," said Bernard Baumohl, executive director of the Economic Outlook Group. "I don't think it's in the best interest of Circuit City as a whole." While other companies have introduced two-tiered wage systems, where newer workers make less, firing workers and offering to rehire them at a lower wage is rare. "I don't think you're going to find too many examples," of this, said Ken Goldstein, labor economist for the Conference Board, a business research group. "That certainly has not been a trend we've seen." Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co., says the workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, the company said in a news release.

SA sees 7% employment growth

Johannesburg - Auditing and consulting services firm Grant Thornton reported a 7% growth in South Africa's employment rate in its 2007 annual Employment Growth Index (EGI).
The index tracks medium to large privately held businesses and is conducted in all countries where Grant Thornton does business.
The EGI forms part of the annual Grant Thornton International Business Report (IBR) survey.
Towards the end of 2006, the IBR was conducted amongst medium to large privately held businesses in 32 countries covering more than 7 200 respondents.
In South Africa, Research Surveys conducted research among 200 privately held businesses, employing between 100 and 400 people.
The survey, which Grant Thornton released early this year, found that crime was "a major problem facing business" in South Africa as it affected 84% of businesses surveyed.
Construction sector main contributor
The EGI is determined by calculating the difference between increases and decreases in employment reported by the privately held businesses surveyed.
Grant Thornton said in a statement the 7% growth was 4 percentage points up on last year's EGI which "only reflected a 3% growth as a result of hampered employment growth within the manufacturing sector." EGI 2005 showed a 6% year-on-year growth in employment in South Africa.
"The survey reveals that 62% of privately held businesses in South Africa have increased their staff complement over the past twelve months," said Grant Thornton.
This was higher than the 57% global average. Grant Thornton said 12% of SA respondents reported a decrease in employment while the figure was 13% internationally.
"Those (SA) businesses that increased employment reported, on average, that they had 14% more employees. Those that cut staff lost an average of 11%. Overall there was a 7% increase in employment."
The main contributor sector in South Africa was the construction sector, which reported significant employment growth of 13%, up from 11% in 2006. The sector reported an increase for the second year in a row. The manufacturing sector reported a 5% year-on-year growth in 2007, after a 3% decline in employment growth in 2006.
'Best news we could ask for'
"The services and retail sectors reported year-on-year employment growth of 8% and 4% respectively. In 2006 the services sector reported a 6% growth and retail 5%," said the statement.
"Growth in employment is the best news we could ask for," says Grant Thornton South Africa chairperson, Leonard Brehm. "It appears that we are well past the years of jobless growth. Prospects for the next year are excellent as well."
Brehm said 53% of all South African respondents said they expected to increase their staff complement in the next year. However, the number was lower than India, the Philippines and Armenia.
In India, 80% of respondents said they expected to increase their staff compliment in 2008. Seventy percent of respondents in the Philippines and 67% in Armenia (both new comers to the survey) said they also expected growth.
The Grant Thornton's International Business Report (IBR) is in its fifth year. It researches the opinions and expectations of privately held businesses internationally.
The majority of respondents remain the same size as in previous years, ensuring that the five years of trend data remain relevant both internationally and in South Africa.

Major U.S. layoffs at Citigroup planned

By Riva Froymovich March 26, 2007
Under pressure from shareholders to cut costs, Citigroup Inc. is planning to layoff or relocate thousands of employees and focus on international growth, chief executive Charles O. Prince told employees in India today, according to published reports.

Mr. Prince’s speech precedes an expected formal announcement of a broad restructuring of the New York-based bank that would affect employees in New York, London and Hong Kong, reports said.
The Wall Street Journal reported that as many as 15,000 jobs would be cut for planned savings of $1 billion.
Citigroup’s corporate and investment bank might lose about 4,000 jobs, reports said.
In his speech, Mr. Prince said that India has been the single biggest driver of growth for the bank’s international operations, reports said.

Charting mass layoffs in the U.S. over the past year

Author: RP news wires
In February 2007, employers took 1,280 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Department of Labor's Bureau of Labor Statistics reported. The number of mass layoff events increased by 43 from January.

Each action involved at least 50 persons from a single establishment; the number of workers involved totaled 143,977, on a seasonally adjusted basis. The number of associated initial claims rose by 17,609 from January.

During February, 419 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 64,072 initial claims. Compared with the prior month, mass layoff activity in manufacturing increased by 30 events and by 12,931 initial claims.

This data is from the Mass Layoff Statistics program. To learn more, see “Mass Layoffs in February 2007,” news release USDL 07-0421.

Midwest hit hardest by mass layoffs

By Kristin McAllister
Staff Writer
Thursday, March 22, 2007

The Midwest took the greatest hit for mass layoff actions for the month of February, according to a U.S. Bureau of Labor Statistics report issued Thursday.

Mass layoffs entail 50 or more workers beginning in a given month, regardless of the duration of the layoff. They are seasonally adjusted and measured by new filings for unemployment insurance benefits during the month.

From a state level, Pennsylvania had the largest over-the-year increase in the number of initial claims — 7,919 — mostly due to layoffs in transportation equipment manufacturing.
Next were the states of Michigan (4,219), Wisconsin (3,514), Ohio (1,403) and Illinois (1,299).
The largest over-the-year decreases in claims occurred in Minnesota (-1,685) and Kentucky (-1,320).

Among the four census regions, the highest number of initial claims in February due to mass layoffs was in the Midwest — 26,603.

Transportation equipment manufacturing and specialty trade contractors industries together accounted for 37 percent of all mass layoff initial claims in the Midwest.

The West had the second largest number of initial claims among the regions — 23,971 — followed by the Northeast, (18,272), and the South, (17,850).

The number of initial claimants in mass layoffs increased over the year in all four regions.

Contact this reporter at (937) 225-9338 or kmcallister@DaytonDailyNews.com.

Jobless claims fall, leading indicator slips

By Nancy Waitz
WASHINGTON (Reuters) - A surprise drop in the number of new claims filed for jobless aid pointed to a healthy U.S. labor market, but a forward-looking measure of the economy showed momentum has slowed, data released on Thursday showed.

Initial filings for state unemployment insurance aid fell for the third straight week and to the lowest in six weeks, dropping to 316,000 in the week ended March 17 from an upwardly revised 320,000 for the prior week, the Labor Department said.

Jobless claims are at a level economists see as consistent with steady employment growth.

"The data hints that March's payroll numbers will be stronger than a weather-depressed February," said David Sloan, an economist for 4CAST Ltd.

In February, the U.S. economy added 97,000 jobs, the smallest gain in two years, with weather taking its toll. Construction employment fell 62,000, probably prompted in part by cold and stormy weather in much of the country.

Thursday's data had no impact on the U.S. Treasury market as investors focused instead on taking profits following Wednesday's hefty rally after the Federal Reserve in a statement on its policy meeting dropped an explicit reference to the possibility of future interest rate increases.
The Fed kept its benchmark federal funds rate unchanged at 5.25 percent at its meeting on Wednesday, as expected.

In a separate report, the private Conference Board said its Composite Index of Leading Economic Indicators fell 0.5 percent in February following a 0.3 percent drop in January and 0.7 percent rise in December.

"Despite declines in both January and February, the cumulative change over the past six months remains positive," Ken Goldstein, labor economist at the Conference Board, said in a statement.

"The housing and manufacturing sectors are clearing going through a correction, but the consumer sector appears to be holding up. That mix should generate moderate but choppy growth ahead," Goldstein said.

In the weekly jobless report, there were no special factors behind the decline in new claims, which fell to their lowest level since the week ended February 3, a Labor Department analyst said.

"Claims will likely be volatile over the next few weeks as Easter approaches. The holiday falls eight days earlier this year than last, causing potentially significant problems for the seasonals," said Ian Shepherdson, chief U.S. economist for High Frequency Economics.

"Claims could easily drop sharply over the next couple of weeks before rebounding in early April," he said.

For a more conclusive picture of the job market, economists will have to wait until next month when the government releases its monthly payrolls report for March.

Analysts on Wall Street had expected claims, which provide a rough guide to the pace of layoffs, to rise to 324,000 from the 318,000 initially reported for the March 10 week.

A four-week moving average of claims, which smooths weekly volatility to provide a better sense of underlying job-market trends, also fell for the second straight week, dropping to 326,000 from 329,750 in the prior week.

The total number of unemployed still on the benefit rolls after drawing an initial week of aid fell 69,000 to 2.50 million in the week ended March 10, the latest period for which figures are available.

State's jobless numbers increase

By Dawn Peake, dmpeake@stcloudtimes.com


Minnesota employment remained almost stagnant in February while unemployment continued to climb, according to government data released Tuesday.
Minnesota posted a net loss of 1,200 jobs in February from a month ago with gains in about half the sectors and losses in half, according to the Minnesota Department of Employment and Economic Development.
Employment grew less than 0.8 percent from a year ago as jobs in most sectors increased far less than a percentage point.
Unemployment rose to 4.5 percent in February, up from 4.4 percent in January. That puts the state on par with the national rate.
The state saw the largest decline in natural resources and mining jobs, with a 12.6 percent decrease from a year ago.
Nationally, jobs in natural resources and mining increased 7.6 percent — performing better than all other sectors.
Education and health services provided the most growth as it added about 12,540 jobs, 3.1 percent more than a year ago.
Jobs in education and health-related fields accounted for 60.3 percent of all jobs added during the past 12 months.
St. Cloud employment data will be available next week.
In January, the area's job growth surpassed economists' expectations by rising 2.4 percent from a year ago. Unemployment climbed to 5.9 percent, exceeding the state and national rates.

Triad unemployment rate hits five-month high

By Richard Craver
JOURNAL REPORTER


The Triad's unemployment rate hit a seven-month high of 5.1 percent during January, primarily caused by the annual recalculation of how the N.C. Employment Security Commission measures employment data, the commission reported today.
The Triad's rate was 4.8 percent in December. The previous recent high was 5.3 percent in July.
The jobless rate for both the Winston-Salem metropolitan statistical area and Forsyth County rose to 4.5 percent in January from 4.2 percent in December.
The commission said that the 2006 unemployment data for the region and individual counties are being recalculated to meet federal guidelines, which is likely to result in most of the monthly jobless rates being revised. The state jobless rate already has been recalculated.
The benchmark is a monthly population survey by the U.S. Bureau of Labor Statistics to determine the national unemployment rate.
The commission reported that the jobless rate rose in 98 of the state's 100 counties during January.
One result of the annual benchmarking can be a reduction in the work force levels within the state's 14 MSA regions.
For example, the Winston-Salem MSA, which is comprised of Davie, Forsyth, Stokes and Yadkin counties, had 2,600 fewer jobs in January compared with December, according to the commission. The bulk of the job losses, 1,600, came in the trade, transportation and utilities sector, as well as 500 in government.
The Greensboro-High Point MSA was listed as having 7,900 fewer jobs compared with December, as well as the Charlotte-Gastonia-Concord MSA having 11,100 fewer jobs and the Raleigh-Cary MSA having 7,800 fewer jobs.
Fayetteville was the lone MSA that did not have a reduction in its work force during January.
"Right now, this is an over-the-month change," said Larry Parker, a spokesman for the commission. "It's a lowering across the state, based on not-seasonally adjusted data."

Italy 4Q Adjusted Jobless Rate 6.5% Vs 3Q 6.7% -2

Wed, Mar 21 2007, 09:35 GMThttp://www.djnewswires.com/eu
DATA SNAP: Italy 4Q Adjusted Jobless Rate 6.5% Vs 3Q 6.7% -2 The number of employed people rose 1.5% to 23 million from the fourth quarter of 2005, due to an increase in workers on short-term contracts and an increase in foreigners' employment.

Compared with the third quarter of 2006, employment rose a seasonally adjusted 0.2%. Foreigners' employment level grew 2.0% to 67.4% in the fourth quarter, the Istat official said, while 191,000 more people had short-term contracts in the same period.

The employment rate rose to 58.5% from 57.8% in the fourth quarter of last year, although it remains low compared to the European Union average. This increase was helped by an increase in women's' employment on short-term and part-time contracts in Southern Italy, the Istat official said. It said fewer people in the same region reported they were looking for employment in the fourth quarter.

On the year, the unemployment level fell most significantly in the southern part of the country, especially for women, Istat said. The employment level in 2006 rose 0.9% to 58.4% from 57.6% in 2005, due to employment growth all over the country, with a 1.0% growth in the northern and central parts of the country and a 0.8% growth in the South, Istat said.

Full-time employment increased 1.4% on the year, while part-time employment rose 5.4%.

-By Kristine Crane, Dow Jones Newswires; +39 06 678 25 43; kristine.crane@dowjones.com

Washington State Manufacturing Jobs Up 10,000 In '06

    EVANSTON, Ill., March 20 /PRNewswire/ -- Washington's manufacturing
sector saw another spike in manufacturing employment to the tune of 10,000
over the past year according to the 2007 Washington Manufacturers
Directory, an industrial directory published annually by Manufacturers'
News, Inc. (MNI) Evanston, IL. MNI ( http://www.manufacturersnews.com )
reports Washington's 10,057 jobs gain equates to a 3.5% increase in
industrial employment over twelve months; the state's third straight year
of manufacturing gains.
   (Logo: http://www.newscom.com/cgi-bin/prnh/20070213/MNILOGO )
   MNI data indicates Washington's industrial employment began to rise
between 2004 and 2005 during which the state gained 9,443 jobs, followed by
another 4,698 gain between 2005 and 2006. The three-year increase amounts
to an 8.7% jump in industrial employment for the Evergreen State.
   "Washington's gains were among the largest seen in the U.S. over the
past few years," said Howard Dubin, Chairman of the Chicago area-based
publishing company, which has been conducting industry surveys since 1912.
"Manufacturing continues to grow in this region because its workers rank
high in the technological skills that make up America's new advanced
manufacturing."
   MNI's regional study shows Washington ranks 23rd in the U.S. by number
of manufacturing jobs and 19th by plants. Washington represents 1.3% of the
Western region's plants and 11.3% of its manufacturing employment, ranking
it 2nd in the region for jobs. Washington also ranks second in the region
in workforce increases over one year. Washington, Oregon, Idaho and Nevada
gained a combined 9.4% manufacturing employment for the region compared to
California and Arizona's 3.1% aggregate loss.
   Manufacturers' News reports Washington is home to 7,065 manufacturers
employing 306,757 workers. MNI profiles both large and small Washington
manufacturers, including start-up companies with just a few employees.
   Redmond is Washington's top industrial employer accounting for 12.5% of
the state's manufacturing employment, or 38,337 jobs. Seattle is a close
second, accounting for 36,174 jobs (12%) but ranks first in plants,
representing 14% of the state total. Manufacturing employment was up in
both cities in 2006, with Redmond up 8% and Seattle 5.1%, but plants were
down in both cities by a combined 3.4%.
   MNI reports 13% of the state's plants are in the industrial machinery
and equipment sector. Aircraft and related parts and equipment represent
the state's top sector by employment, accounting for 33,174 jobs or 11% of
the state's industrial workforce. Missile and related parts production
accounts for another 8,300 jobs or 2.7%. Pre-packaged software accounts for
29,552 jobs while saw/planing mills employ 7,546.
   Detailed profiles of Washington's 7,065 companies can be found in the
2007 Washington Manufacturers Register, available in print for $105 and on
CD-ROM from $164. Each profile provides up to 30 facts, including vital
contact information (phone, web, e-mail), names and titles of 17,966 key
executives, product(s) manufactured, annual sales, number of employees, and
more. Visitors to http://www.mnileads.com may generate custom company
selections using thirteen different criteria, including area or zip code,
county, SIC, sales volume, number of employees, and more.
   Manufacturers' News, Inc., publisher of manufacturers' directories
since 1912, compiles and distributes manufacturing guides, statistics and
databases for all 50 states. For more information, contact Manufacturers'
News, Inc., 1633 Central St., Evanston, IL, 60201, 847-864-7000, FAX
847-332-1100.
        State Manufacturing Employment Comparison -- Western Region

                                     2006           2007
                                    Edition        Edition
    State          Data collected    jobs           jobs           % +/-
    1. Nevada      10/05-10/06      61,240         63,795          + 4.1%
    2. Washington  2/06-2/07        295,250        306,757         + 3.5%
    3. Oregon      10/05-10/06      237,963        240,857         + 1.3%
    4. Idaho       10/05-10/06      82,576         83,066          + 0.5%
    5. California  2/06-2/07        1,686,055      1,661,789       - 1.4%
    6. Arizona     3/06-3/07        246,120        241,897         - 1.7%
    7. Hawaii      12/06-12/07      27,469         25,924          - 5.6%

SOURCE Manufacturers' News, Inc.

DATA SNAP: Hungarian January Real Wages Decline 6.4%YY -2-

Tue, Mar 20 2007, 08:27 GMT
http://www.djnewswires.com/eu

DATA SNAP: Hungarian January Real Wages Decline 6.4%YY -2-

Gross wages rose 7.1% in January from a year earlier versus a rise of 11.9% in December. Gross wages in the private sector increased 10.4% after a whopping rise of 15.5% in December. Gross wages grew 5.6% in the public sector in January versus an increase of 5.2% a month earlier.

The central bank said that it will scrutinize wage data, especially wage developments in the private sector, to see whether the government's fiscal austerity measures have boosted inflationary pressure.

Analysts said that January wage data are especially important for the central bank as previous months' figures have been distorted by tax changes. Higher personal income and other taxes coming into effect in 2007 may have prompted companies to pay wages and bonuses in the last months of 2006.

January wage data should be free from these distortions, they said.

Gross wages rose 10.8% in January in the industrial sector, which accounts for the lion's share of Hungary's economy, down somewhat from a rise of 11.3% in December. Gross wages in the manufacturing sector were up 11.4% in January versus a rise of 11.6% in December.

Gross monthly wages averaged 209,418 forints ($1,135) in January. They totaled HUF163,219 in the private sector and HUF329,670 in the public sector.

Net wages were up 0.9% in January as a result of a 3.2% wage increase in the private sector and a 0.5% decline in the public sector. In December, net wages rose 8.2%, with net wages rising 11.3% in the private sector and 2.3% in the public sector. Higher social security and other employment-related payments, that came into effect in September and January, continued to keep net wage growth under pressure, the KSH said.

The KSH added that the number of employees totaled 2.78 million in January, up 1.0% from a year earlier. Employment continued to fall in the public sector and rise in the private sector, a trend seen since March 2006. Public sector employment was down 3.4% at 753,400 and private sector employment was up 2.1% from a year earlier at 1.95 million.

The data exclude businesses with fewer than five employees.

Statistics office's Web site: http://www.ksh.hu

-By Edith Balazs, Dow Jones Newswires; +361-267-0622; edith.balazs@dowjones.com

(END) Dow Jones Newswires

March 20, 2007 04:27 ET (08:27 GMT)

Subprime fallout, Ameriquest cuts 3,000 jobs

Company cites ‘very challenging non-prime market’ for extreme move

The parent company of subprime lender Ameriquest Mortgage Co. said Thursday it was slashing its work force and consolidating operations in its retail call centers and wholesale loan production offices.

It is the second wave of cuts in less than a year for Orange-based ACC Capital Holdings Corp., one of the nation’s largest subprime lenders.

ACC did not disclose how many employees would lose their jobs in the latest cost-savings move, but the Orange County Register reported that the 2,800 and 3,200 — or about half the total number of employees — would be terminated.

The company cited the “very challenging non-prime market” for the cuts.

“While extremely difficult, these changes will strengthen ACH’s financial position, increase our efficiency and improve our cost structure — enabling the company to leverage the opportunities created by consolidation in the non-prime industry,” the company said in a statement.

The cuts come amid turmoil in the subprime lending area. Lenders who specialize in making risky, higher-interest mortgages to people with blemished credit records have been tightening their lending policies as their own financing has dried up and defaults have increased.

Prior to the restructuring announced Thursday, Ameriquest operated four retail call centers nationwide. Those operations were being consolidated to Southern California, spokesman Chris Orlando said.

Wholesale loan production centers in New York operated by subsidiary Argent Mortgage Co. were being consolidated into the company’s facilities in Rolling Meadows, Ill., the company said.

Last May, Ameriquest’s parent closed 229 branch offices and laid off 3,800 employees nationwide as part of a plan to consolidate its retail mortgage lending operations.

Those job cuts amounted to a one-third reduction of ACC Capital’s work force, which at the time stood at 11,000.

Last year, ACC agreed to pay $325 million in a multistate settlement over claims of deceptive lending practices.

The lender did not admit to any wrongdoing as part of the settlement but agreed to provide borrowers with full disclosures on the terms of loans, stop giving its lending agents financial incentives to include higher fees or other penalties on loans, and change how it handles appraisals.

ACC also operates AMC Mortgage Services Inc., formerly Bedford Home Loans.

Sony to lay off up to 900 workers

By C.M. MortimerTRIBUNE-REVIEWThursday, March 15, 2007

Sony Technology Center-Pittsburgh said today that 300 workers will be laid off beginning in April, and as many as 500 to 600 more workers could possibly lose their jobs within the next year as production of the rear-projection television models moves from Westmoreland County to Mexico.

The loss will be mitigated somewhat as production of Sony's Bravia models, a liquid-crystal display, flat-panel direct-view television, will be shifted from Mexico to Sony Technology Center-Pittsburgh, located in Hempfield and East Huntingdon townships.

"This is purely a business decision, the result of severe price erosion within that category (rear-projection) of televison and market demand," said Michael L. Koff, Sony spokesman, today.

Sony Technology Center-Pittsburgh currently employs 1,150 workers, and if 900 positions are cut, the television manufacturing facility would be left with 250 workers.

Koff said the move of the SXRD rear-projection model is effective in July. He said production of the 46-inch Bravia model would start in the summer. However, he said production of that model is "highly automated," which requires fewer workers.

Job cuts coming to Dell soon?

Questions have been centering on the fate of Dell Inc.'s (NASDAQ:DELL) employee base in recent weeks, especially as the tales of the computer maker's recent struggles came into public view. It's true that Dell recognizes where it needs to improve, starting at the top with return of company founder Michael Dell and a slew of new executives to right the ship back to its former glory, if that is even possible.

But, with the rate of Dell employee growth having far outpaced sales growth in recent years, is the company ready for a reduction in its workforce? Maybe so -- as it's been over six years since a company wide layoff was in effect at Dell. By many measurements -- like operating expenses being 11.6% of sales recently -- Dell's employee ranks are overpopulated.

Is the PC maker ready to cut some employees? Like this BusinessWeek article mentions, the most likely departments to be cut would include marketing and accounting. Positions at sales and customer support are probably safer as the company definitely needs to keep selling and continue improving its level of support to customers, an area which has been a troublesome for quite some time.

Posted Mar 12th 2007 10:36AM by Brian White
Filed under: Rumors, Dell (DELL), Employees

Some Sectors in Europe Face a Labor Shortage

By CARTER DOUGHERTY

Published: March 10, 2007

FRANKFURT, March 9 — Corinne Margot is reaching deep into her bag of tricks to find new employees.

Ms. Margot, the director of human resources for Soitech, a fast-growing French manufacturer of semiconductors, has created a Web site that lets managers identify and recruit engineers directly, bypassing her own office for the sake of efficiency.

And she is bringing in people from outside France — indeed, outside Europe — to plug the gaps.

Ms. Margot is also traveling to French universities and technical schools to plant the idea of a career in semiconductors in the minds of young people, hoping they remember the name Soitech as well. But despite her efforts, as she grimly acknowledges, Soitech’s stretched work force is still struggling to keep up with the orders coming in.

“We haven’t had to tell customers to wait yet,” Ms. Margot said, “but it’s coming.”

For a continent where high unemployment has defined economic life for much of the last three decades, it may seem counterintuitive that Europe could be facing a labor shortage. But that is very much the case across important swaths of the European economy, as reflected in surveys and interviews with executives.

And it is precisely the most dynamic, future-oriented industries that have been hardest hit. For recruiting departments around Europe, 2007 could be the worst year in memory.

At the end of 2006, the unemployment rate of the 13-country euro zone was 7.5 percent, its lowest level since 1993. Jean-Claude Trichet, president of the European Central Bank, is fond of pointing out that this is still a “very high level,” with 11.1 million people out of work, and far higher than the 4.5 percent rate in the United States.

But this cyclical upswing in Europe, in contrast to the softening in the United States, is accentuating labor bottlenecks. Europe’s pickup began in earnest last year, yet, according to the European Central Bank, many companies handled much of the new work that flowed into factories and offices by increasing productivity and lengthening work hours. Now that they are turning to the labor market for new hires, they are finding that the pickings are slim.

The cyclical problems are layered atop a structural one. Europe’s painful shift from heavy industry to more specialized manufacturing and services, combined with generally low prestige for highly technical professions, has outpaced what Europe’s educational system has to offer.

“People that are available on the labor market do not correspond to what the corporate sector needs,” said Véronique Riche-Flores, chief economist for Société Générale in Paris. “They simply have different qualifications, or none at all.”

Sometimes the solution is higher salary and better benefits. But more often than not, companies have to find ways to work around a limited supply of qualified employees — by nurturing young talent, finding people from overseas, or simply moving operations outside Europe.

Measured by the European Commission’s main survey on labor shortages and interviews across industries from computer hardware to software to machine tools to fashion and banking, the shortage of employees has not been this acute since the technology boom years at the start of this decade. Some recruiters have to think back even further to remember a time when their work was so difficult.

“My colleagues are constantly asking how far I have come in finding them new people,” said Andreas Weber, head of personnel for the SMS Group, a German engineering company that builds manufacturing technology. “But if I don’t have applicants, I have nothing to offer them.”

Europe’s giant companies are not immune. Klaus Kleinfeld, chief executive of Siemens, the engineering conglomerate, said that it had 2,500 positions open in Germany alone. Over the last year, the shortage has become acute enough that Siemens has begun bringing employees out of retirement to work on specific projects.

“Our growth rates is now mostly limited by our human resources capacity,” Mr. Kleinfeld said.

The scarcity of qualified labor is already hitting the bottom lines in the major economies, and companies like Soitech seem sure to follow in the footsteps of companies that have been forced to forsake sales opportunities.

Electrical engineering — in which midsize family-owned businesses in Germany, known as the Mittelstand, lead the way in Europe — is a case in point. In 2006, employment in this industry rose for the first time since 2001, but the 6,000 to 8,000 new positions it would like to create this year may not materialize.

The Association of German Engineers estimates there were 22,000 open engineering positions in Germany at the end of 2006, in building, energy, machine tools and other areas. That is 30 percent more than the previous year. Since one employed engineer generates 2.3 jobs in other areas, the group estimates the value of economic activity lost at about 3.7 billion euros in Germany alone, or about $4.8 billion.

In the face of such acute shortages, many companies are assuming a role previously dominated by the state in Europe: They are going into universities, technical academies and even secondary schools to make their case directly to young people. Although that has been done before, executives say today’s missionary work in European schools has a different quality.

“We are reaching out to schools to try and encourage students to prepare themselves in the best possible way not just for working in our field, but in any field,” said Albert Tacchella, chairman of Ucimu, the Italian machine tool manufacturing association.

UniCredit, which in 2005 cemented the largest cross-border banking merger in Europe when it bought the HVB Group of Germany, recently created UniManagement, a combination research institute and management school for crucial executives.

“These are the lengths that companies go to train and keep their top employees,” said Anna Simioni, chief executive of UniManagement.

Recruiting more people from outside Europe is another persistent theme. At Soitech, there has been an explosion in the number of nationalities represented over the last few years, from a handful to at least 19 today. “We are beginning to recruit on an international market rather than a French market,” Ms. Margot, the personnel chief, said.

But this pool of engineers, who in any case face bureaucratic hurdles to work in France, is limited, since they need to speak French to communicate with the technicians they supervise.

Moving jobs offshore is another alternative. The SMS Group has found itself weighing whether to move parts of the business to its operations in China, India, the United States and Brazil. In years past, assuming costs alone did not drive them out of Germany, the company would have been inclined to keep high-skill jobs at home, in part to foster good communication with headquarters. Now, positions that could stay in Germany for cost reasons are headed abroad for lack of personnel.

“We are trying to keep our core competencies here,” Mr. Weber, the personnel chief for SMS, said, “but simpler tasks are headed abroad.”

Eric Sylvers contributed reporting from Milan.

Job growth slows to 97,000 in February

Unemployment rate unexpectedly falls back to 4.5%

WASHINGTON (MarketWatch) -- Hit by wintry weather in February, the U.S. economy created the fewest jobs in two years, even as the unemployment rate fell to 4.5%, the Labor Department reported Friday.

Nonfarm payrolls increased by 97,000, trivially lower than the 100,000 expected by economists surveyed by MarketWatch and the lowest since January 2005, but traders may have been expecting a much weaker number.

"The prevailing sentiment seems to be 'it could have been worse,'" wrote Richard Moody, chief economist for Mission Residential.

The housing and factory sectors continued to shed jobs in February, reflecting the overall weakness in the goods-producing side of the economy, which had sparked fears of an incipient recession among some traders last week. But, with the services-side of the economy adding jobs in February, the worst of those fears was allayed, said Mike Englund, chief economist for Action Economics.

While job growth was relatively weak in February, other aspects of the report pointed toward a tight labor market. Bond prices fell, while stocks opened higher as the report came in stronger than some expected. The dollar gained ground.

Payroll growth in the previous two months was revised higher by a total of 55,000. January's payrolls were revised up to 146,000 from 111,000. Read the full government report.

The drop in the unemployment rate to 4.5% from 4.6% was unexpected. The unemployment rate has drifted between 4.4% and 4.6% for six months.

The jobless rate fell to 4.5% from 4.6% because people dropped out of the labor force, not because unemployed workers got jobs. According to a survey of 60,000 households, the labor force fell by 190,000 in February, the biggest drop in more than three years. Employment fell by 38,000. Unemployment fell by 152,000 to 6.9 million. The labor participation rate fell a tenth to 66.2%.

Average hourly earnings increased a larger-than-expected 6 cents, or 0.4%, bringing the year-over-year gain to 4.1%. Higher wages could fuel inflation, Fed officials fear.

A blast of cold and wet weather in February after two months of relatively balmy conditions "likely contributed" to job losses in construction, said Philip Rones, deputy commissioner of the Bureau of Labor Statistics, in a statement.

Construction jobs fell by 62,000 in February, including 23,000 in residential-construction trades.

The weather may have also contributed to a six-minute decline in the average workweek to 33.7 hours. Total hours worked in the economy fell by 0.3%.

"After taking into account the weather-related distortions in the data, the report suggests that the labor market is holding together reasonably well at this point," wrote David Greenlaw and Ted Wieseman, economists for Morgan Stanley, in a note to clients. "Indeed, if conditions return to normal in March, we would expect to see a snapback in job growth."

Factory payrolls fell by 14,000, their eighth straight monthly decline. Of 84 manufacturing industries, 42.9% were hiring in February, unchanged from January.

According to the payroll survey of 400,000 business establishments, private-sector payrolls rose by 58,000, matching the 57,000 estimated by the ADP national employment report Wednesday. See full story. It's the weakest private-sector growth since late 2004.

Of 278 industries, 63.5% were hiring in February, the lowest percentage since December 2005.

Service-producing industries added 168,000 jobs, with stronger growth seen in health care, professional services, and leisure and hospitality industries. Temporary-help jobs fell by 12,000.

In a separate report, the Commerce Department said the U.S. trade gap narrowed to $59.1 billion in January as exports climbed to a new record and imports fell slightly. See full story.

Rex Nutting is Washington bureau chief of MarketWatch.

Recovery likely to see German employment surge

By Hugh Williamson in Berlin
Published: February 20 2007 22:05 Last updated: February 20 2007 22:05
The number of people in work in Germany reached a five-year high in 2006 with a further surge in job creation expected this year, underlining the strength of the rebound in Europe’s largest economy.
Employment rose last year to 39.1m, compared with 38.8m in 2005 and 39.3m in 2001, the most recent highpoint, according to official data published on Tuesday.
The data are likely to ­reaffirm chancellor Angela Merkel’s view that it was correct last month to push through with a sharp value added tax rise, arguing that Germany’s strong economic upturn would weather any slowdown caused by the tax increase.
Economists predicted on Tuesday that, on a seasonally adjusted basis, German employment rose to an all-time high last month, reaching a projected 39.4m compared with 39.36m in December 2006.
Headline unemployment is likely to fall below 4m by late 2007, compared with 4.25m in January and more than 5m in early 2005, experts predicted on Tuesday.
Martin Werding, labour expert at Munich’s Ifo economic institute, said the employment figures were “another positive signal that Germany’s economy recovery was filtering through to the labour market”.
He said the expected fall in unemployment this year would be largely due to Germany’s strong economy, with the effects of recent labour market reforms having a larger effect from 2008 onwards. It was now clear that the three percentage point VAT increase “would not lead to the marked economic downturn” that some economists had last year predicted, he added.
The German economy grew by 2.7 per cent last year, with the government predicting a growth rate of 1.7 per cent this year. Economists and business groups are more optimistic, with the DIHK chambers of commerce last week forecasting an economic expansion of 2.3 per cent this year.
The services industry was Germany’s leading employment growth sector last year, with an increase of almost 400,000 to 28.3m. Employment in the construction industry, which has fallen sharply in recent years, grew by around 90,000 in the second half of 2006, with 2.2m employed in the sector between October and December last year. The number of manufacturing jobs also increased towards the end of 2006, with 7.8m employed in the last quarter.
Despite the positive jobs figures government officials said Ms Merkel’s grand coalition would persist with further labour market reforms, aimed in particular at creating greater flexibility among low wage workers.
Franz Müntefering, labour minister, this week said the battle against unemployment would reach a “positive turning point” this year. He is expected soon to present proposals that combine incentives for unemployed people to take up jobs with measures that include minimum wages in certain sectors.
Additional reporting by André Kühnlenz in Berlin

Layoff talk fills air with uncertainty

HERSHEY CO. RESTRUCTURES
Layoff talk fills air with uncertainty
Hershey workers, community fear local plant losses
Friday, February 16, 2007
BY DANIEL VICTOROf The Patriot-News

It is what The Hershey Co. didn't say about its planned job cuts that generated so much angst and fear among the blue-collar workers who make the candy.

The company yesterday announced that 1,500 jobs will be cut within three years, but workers don't know which ones. The company said it will build a plant in Mexico.

The workers who make the candy that helps define the region's identity described the mood inside Derry Twp. plants yesterday as tense or fearful.

"Nobody knows nothing," said George Lehman, who has been with the company for 27 years, after finishing his shift in wrapping. "It's all just hearsay."

Kay Brown, also ending her shift in wrapping, said the news made it difficult to keep up with a busy day in the plant.

"That's all I'm hearing about," she said.

The Hershey Co. hasn't said which plants could see a reduction in positions. A company spokesman said some plants will be expanded, some will be downsized and some will be closed.
The company scheduled a meeting at 7 a.m. today at the Hershey Theatre for the employees of the 19 E. Chocolate Ave. plant. Workers at the Reese's plant were gathered early yesterday, but one worker said officials did not answer a series of questions.

Dennis Bomberger, business manager of Chocolate Workers Local 464, said he's worried that local plants could be closed.

"You can just hope it's not going to be the ones here," he said.

Bomberger said he would hope "sentimental value" would play a part in protecting the workers at the plant at 19 E. Chocolate Ave.
With 2007 being the 100th anniversary of the Hershey Kiss, he said, "Wouldn't that be a heck of an anniversary?"
The smell of chocolate often fills the air of Hershey, and the company is similarly ingrained in the community.

Layoff Notices Expand

For some time, I've been carrying layofff notices for US firms.

Because my readership has expanded, I've decided to expand layoff notices as well.

Beginning imediately, you'll be finding notices from outside the USA as well.


Best wishes,


Jeff Altman, The Big Game Hunter

Hudson Bay mill workers brace for layoffs

Hudson Bay mill workers brace for layoffs
OSB plant among threeWeyerhaeuser operationsfacing temporary layoffs


Lana Haight, The StarPhoenixPublished: Thursday, February 15, 2007
Hudson Bay is bracing for another economic hit as employees at a local mill face layoffs.
As many as 35 of the 183 employees at the Weyerhaeuser Co. oriented strand board (OSB) mill will lose their jobs by mid-March in what's hoped will be a temporary layoff.
"We're not 100 per cent sure how long this will continue," said Weyerhaeuser Co. spokesperson Wayne Roznowsky.
Last week, Weyerhaeuser Co. announced the production slowdown at its OSB mills in Hudson Bay, about 310 kilometres northeast of Saskatoon, as well as in Drayton Valley, Alta., and Sutton, W.Va. Each plant produces between 415 million and 640 million square feet of OSB annually. The company is planning to cut its production by as much as 600 million square feet this year.
Rather than closing one plant, Weyerhaeuser management decided to scale back production at the three facilities and issue temporary layoff notices. At the OSB 2000 mill in Hudson Bay that operates 24 hours a day, seven days a week, production will be cut to five days a week. It's unclear at this point who will be laid off.
"You can't just go by the last person hired because there may be some trades that are needed in the mill," said Paul Hallen, president of the United Steel Workers of America Local 1-184.
The production slowdown doesn't surprise Patricia Mohr, vice-president of economics at Scotiabank, who follows the forest industry.
"The industry is expanding capacity quite markedly in an environment of very weak demand," she said.
Record high profits at OSB mills during the past five years prompted some companies to build new plants. Two facilities, each producing more than 800 million square feet of board annually, began operating in the southern United States in the past couple of months. More U.S. plants are scheduled to come on stream this year, says Mohr.
But new home construction in the U.S., the primary market for OSB, has slowed after four years of record-breaking levels.
"In the spring of last year, you met pent up demand for housing in the U.S. and because of somewhat higher mortgage rates and much higher home prices, affordability was reduced," said Mohr.
The industry is going through a cycle that was not unexpected.
"(This) will be a tough year for OSB producers and for lumber producers, for that matter," said Mohr.
"It doesn't really make sense to operate at full capability when the prices are as weak as they are. You're better off to slow it and save your fibre for a better day."
The people of Hudson Bay are expecting that better day will come, says town administrator, Richard Dolezsar.
"In the past 40 years since OSB and aspenite have been produced in Hudson Bay, we have seen peaks and valleys in the markets and have seen similar production slowdowns and ramp-ups several times over the years. I guess we're expecting that's going to happen again and markets will return and the labour force will return to its full force," he said.
There is still no official word about the future of the Hudson Bay plywood mill also owned by Weyerhaeuser Co. About 190 employees were laid off at the beginning of January when Weyerhaeuser closed the mill. Plans for British Columbia-based C & C Wood Products to take over operations and have the plant running again by March were put on hold in January when the company's president died of a heart attack.
C & C Wood Products' letter of intent to purchase, signed in November, included Weyerhaeuser's sawmill in Carrot River where another 116 employees also were laid off in January.
lhaight@sp.canwest.com

As expected, Boston Sci workers get layoff slips

Several hundred employees of the Arden Hills operations received notices Thursday.


By Janet Moore, Star Tribune
Last update: February 15, 2007 – 10:47 PM

Several hundred employees at Boston Scientific Corporation's campus in Arden Hills received their layoff notices Thursday.
The news wasn't unexpected. The Natick, Mass.-based medical technology company said in early January that it would lay off 500 to 600 people at its troubled cardiac rhythm management division, formerly Guidant Corp.
At the time, Boston Scientific said that paring staff would help it "increase innovation, productivity and competitiveness" at the division, which makes heart defibrillators and pacemakers. But sales of the devices plunged after Guidant recalled thousands of the devices in 2005 and 2006 because of safety concerns.
While a spokesman for Boston Scientific wouldn't further quantify the number of local employees affected by the layoff, the company notified the state that 550 positions would be eliminated, said Anthony Alongi, director of the state's Dislocated Worker Program. That includes 400 people in Arden Hills and 150 from the company's sales force.
Before the layoffs, the facility employed about 3,300 people. Boston Scientific bought Guidant in 2006 for $27 billion after a bidding war with rival Johnson & Johnson.
Boston Scientific spokesman Paul Donovan described the separation packages as "generous."
All affected employees will receive 60 days of pay and benefits to satisfy requirements of the federal Worker Adjustment Retraining Notification (WARN) act. In addition, employees will receive severance packages based on length of service, Donovan said.
Those employees who were with Guidant when it changed hands April 21, 2006, will be eligible for change-in-control payments triggered by the acquisition by Boston Scientific. These payments are also tied to the amount of time they've been with the company.
The state's Dislocated Worker Program, part of the Department of Employment and Economic Development, has set aside about $1.54 million for Boston Scientific employees -- money that is funded by a payroll tax on employers. Services range from résumé-writing help to long-term career training, Alongi said.
The state will hold meetings on the Dislocated Worker Program for affected Boston Scientific employees at 1 p.m. and 3 p.m. Thursday at the Shoreview Library, 4570 Victoria St.
Boston Scientific's stock closed Thursday at $17.06, down 15 cents.

2,000 Canadian jobs cut at Chrysler

CanWest News Service; Windsor StarPublished: Thursday, February 15, 2007
AUBURNHILLS, Mich. -The 1,100 Chrysler employees currently on layoff in Canada will see their jobs disappear this year, the company announced Wednesday.
An additional 900 jobs will be lost in Canada next year.
The announcement came Wednesday morning at the annual DaimlerChrysler press conference in Auburn Hills, Mich.

An exact breakdown of job reductions in Canada was not immediately available.

The Canadian cuts are part of a North America-wide slashing of 13,000 positions from the Chrysler Group of the auto maker.
The company says it will also look into the sale of its transportation services unit, which employs about 300 people in Windsor in truck driving and janitorial positions.
The company also indicated it will be shifting its focus from minivans and trucks to smaller energy-efficient vehicles.
Chrysler Group president and Windsor native Tom LaSorda said minivans and trucks "were advantages for Chrysler Group once upon a time, but the rules of the global marketplace have changed."
The Canadian Auto Workers had been told to expect the number of jobs eliminated in Canada to mirror the number currently on layoff.

Windsor Star
© CanWest News Service 2007

Number of people in employment in UK soars to record high

A sharper-than-expected fall in unemployment in the UK indicated the job market remained in good shape in January, when the numbers in work reached a record high on both sides of the border.
However, average earnings rose by less than expected in the last months of 2006, indicating that immigrants and older women who returned to work kept the lid on pay growth before the annual pay round began in earnest last month.
According to the Office for National Statistics, the numbers claiming Jobseekers Allowance fell by 13,500 last month, to 925,800.


he fall was the fourth in successive months and the biggest in any since May 2004. It far exceeded City expectations that the claimant count would be reduced by 5000.
Unemployment also fell on the government's preferred International Labour Organisation measure in the three months to December, for the first time in more than two years.
The data indicate that despite concerns about the impact of increased interest rates and a possible slowdown in export markets, employers were confident enough to keep hiring at the turn of the year.
In Scotland, where the strength of the labour market helped spur a period of above-trend growth last year, claimant count unemployment fell for the seventh month running in January.
The numbers in employment in Scotland increased by 33,000 in the three months to December, to 2,507,000 people, the highest since records began in 1992. Across the UK, employment rose by 51,000, to a record high of 29.04 million.
Economists agreed that the data provided signs of a tightening in the labour market, which might trouble interest rate hawks at the Bank of England.
However, economists also noted that the rate of growth in average earnings fell from 4.1% in the three months to September to 4% in December, based on the three-month average of the annual rate.
Excluding bonuses, earnings growth slowed to 3.7% in the latest period, from 3.8%.
City experts had forecast increases of 4.2% on the headline measure and 3.8% excluding bonuses.
Signs of a weakening in wage pressures may reflect the fact that the numbers seeking work have been swollen by immigrants from eastern Europe. Additionally, Lucy O'Carroll, director of research at HBOS treasury services, noted many women of pension age had been re-entering the job market, possibly in order to supplement their pensions.
These are developments that may be welcomed by interest rate doves at the Bank of England.
However, while the Engineering Employers' Federation said manufacturing pay rises averaged less than 3% in January, experts said people should not read too much into official data on pay covering the October-to-December period.
"The Bank of England is far more concerned with pay trends during the current January-April pay round, when two-thirds of all settlements are agreed," said O'Carroll.
While the labour market expanded, the number of jobs in the beleaguered manufacturing sector fell by 63,000 in the three months to December compared with a year earlier, to just over three million, the lowest on record.
The employment rate was 76.1% in Scotland, 1.5 percentage points higher than in England. The claimant count rate in Scotland fell by 0.1 percentage points in January, compared with December. At 3.1% it remains close to the historical low.
Unemployment in Scotland on the ILO measure was 139,000 in October to December, up 7000 on the previous quarter and 3000 on the same period a year ago. The ILO unemployment rate was up 0.2 percentage points on the quarter, to 5.2%, unchanged in the year.
In the UK, 1.69 million people were unemployed on the ILO measure in October to December, down 23,000 on the quarter but up 133,000 on the year.
The ILO unemployment rate in the UK was 5.5%, down 0.1 percentage points on the quarter but up 0.4 points over the year.
The claimant count was 2.9% in January, the lowest since February 2006.
The number of people classed as economically inactive, including those looking after a relative or not seeking work, increased by 19,000 to 7.85 million, 21% of the working-age population.

Number of people in employment in UK soars to record high

A sharper-than-expected fall in unemployment in the UK indicated the job market remained in good shape in January, when the numbers in work reached a record high on both sides of the border.
However, average earnings rose by less than expected in the last months of 2006, indicating that immigrants and older women who returned to work kept the lid on pay growth before the annual pay round began in earnest last month.
According to the Office for National Statistics, the numbers claiming Jobseekers Allowance fell by 13,500 last month, to 925,800.


he fall was the fourth in successive months and the biggest in any since May 2004. It far exceeded City expectations that the claimant count would be reduced by 5000.
Unemployment also fell on the government's preferred International Labour Organisation measure in the three months to December, for the first time in more than two years.
The data indicate that despite concerns about the impact of increased interest rates and a possible slowdown in export markets, employers were confident enough to keep hiring at the turn of the year.
In Scotland, where the strength of the labour market helped spur a period of above-trend growth last year, claimant count unemployment fell for the seventh month running in January.
The numbers in employment in Scotland increased by 33,000 in the three months to December, to 2,507,000 people, the highest since records began in 1992. Across the UK, employment rose by 51,000, to a record high of 29.04 million.
Economists agreed that the data provided signs of a tightening in the labour market, which might trouble interest rate hawks at the Bank of England.
However, economists also noted that the rate of growth in average earnings fell from 4.1% in the three months to September to 4% in December, based on the three-month average of the annual rate.
Excluding bonuses, earnings growth slowed to 3.7% in the latest period, from 3.8%.
City experts had forecast increases of 4.2% on the headline measure and 3.8% excluding bonuses.
Signs of a weakening in wage pressures may reflect the fact that the numbers seeking work have been swollen by immigrants from eastern Europe. Additionally, Lucy O'Carroll, director of research at HBOS treasury services, noted many women of pension age had been re-entering the job market, possibly in order to supplement their pensions.
These are developments that may be welcomed by interest rate doves at the Bank of England.
However, while the Engineering Employers' Federation said manufacturing pay rises averaged less than 3% in January, experts said people should not read too much into official data on pay covering the October-to-December period.
"The Bank of England is far more concerned with pay trends during the current January-April pay round, when two-thirds of all settlements are agreed," said O'Carroll.
While the labour market expanded, the number of jobs in the beleaguered manufacturing sector fell by 63,000 in the three months to December compared with a year earlier, to just over three million, the lowest on record.
The employment rate was 76.1% in Scotland, 1.5 percentage points higher than in England. The claimant count rate in Scotland fell by 0.1 percentage points in January, compared with December. At 3.1% it remains close to the historical low.
Unemployment in Scotland on the ILO measure was 139,000 in October to December, up 7000 on the previous quarter and 3000 on the same period a year ago. The ILO unemployment rate was up 0.2 percentage points on the quarter, to 5.2%, unchanged in the year.
In the UK, 1.69 million people were unemployed on the ILO measure in October to December, down 23,000 on the quarter but up 133,000 on the year.
The ILO unemployment rate in the UK was 5.5%, down 0.1 percentage points on the quarter but up 0.4 points over the year.
The claimant count was 2.9% in January, the lowest since February 2006.
The number of people classed as economically inactive, including those looking after a relative or not seeking work, increased by 19,000 to 7.85 million, 21% of the working-age population.

Number of people in employment in UK soars to record high

A sharper-than-expected fall in unemployment in the UK indicated the job market remained in good shape in January, when the numbers in work reached a record high on both sides of the border.
However, average earnings rose by less than expected in the last months of 2006, indicating that immigrants and older women who returned to work kept the lid on pay growth before the annual pay round began in earnest last month.
According to the Office for National Statistics, the numbers claiming Jobseekers Allowance fell by 13,500 last month, to 925,800.


he fall was the fourth in successive months and the biggest in any since May 2004. It far exceeded City expectations that the claimant count would be reduced by 5000.
Unemployment also fell on the government's preferred International Labour Organisation measure in the three months to December, for the first time in more than two years.
The data indicate that despite concerns about the impact of increased interest rates and a possible slowdown in export markets, employers were confident enough to keep hiring at the turn of the year.
In Scotland, where the strength of the labour market helped spur a period of above-trend growth last year, claimant count unemployment fell for the seventh month running in January.
The numbers in employment in Scotland increased by 33,000 in the three months to December, to 2,507,000 people, the highest since records began in 1992. Across the UK, employment rose by 51,000, to a record high of 29.04 million.
Economists agreed that the data provided signs of a tightening in the labour market, which might trouble interest rate hawks at the Bank of England.
However, economists also noted that the rate of growth in average earnings fell from 4.1% in the three months to September to 4% in December, based on the three-month average of the annual rate.
Excluding bonuses, earnings growth slowed to 3.7% in the latest period, from 3.8%.
City experts had forecast increases of 4.2% on the headline measure and 3.8% excluding bonuses.
Signs of a weakening in wage pressures may reflect the fact that the numbers seeking work have been swollen by immigrants from eastern Europe. Additionally, Lucy O'Carroll, director of research at HBOS treasury services, noted many women of pension age had been re-entering the job market, possibly in order to supplement their pensions.
These are developments that may be welcomed by interest rate doves at the Bank of England.
However, while the Engineering Employers' Federation said manufacturing pay rises averaged less than 3% in January, experts said people should not read too much into official data on pay covering the October-to-December period.
"The Bank of England is far more concerned with pay trends during the current January-April pay round, when two-thirds of all settlements are agreed," said O'Carroll.
While the labour market expanded, the number of jobs in the beleaguered manufacturing sector fell by 63,000 in the three months to December compared with a year earlier, to just over three million, the lowest on record.
The employment rate was 76.1% in Scotland, 1.5 percentage points higher than in England. The claimant count rate in Scotland fell by 0.1 percentage points in January, compared with December. At 3.1% it remains close to the historical low.
Unemployment in Scotland on the ILO measure was 139,000 in October to December, up 7000 on the previous quarter and 3000 on the same period a year ago. The ILO unemployment rate was up 0.2 percentage points on the quarter, to 5.2%, unchanged in the year.
In the UK, 1.69 million people were unemployed on the ILO measure in October to December, down 23,000 on the quarter but up 133,000 on the year.
The ILO unemployment rate in the UK was 5.5%, down 0.1 percentage points on the quarter but up 0.4 points over the year.
The claimant count was 2.9% in January, the lowest since February 2006.
The number of people classed as economically inactive, including those looking after a relative or not seeking work, increased by 19,000 to 7.85 million, 21% of the working-age population.

Number of people in employment in UK soars to record high

A sharper-than-expected fall in unemployment in the UK indicated the job market remained in good shape in January, when the numbers in work reached a record high on both sides of the border.
However, average earnings rose by less than expected in the last months of 2006, indicating that immigrants and older women who returned to work kept the lid on pay growth before the annual pay round began in earnest last month.
According to the Office for National Statistics, the numbers claiming Jobseekers Allowance fell by 13,500 last month, to 925,800.


he fall was the fourth in successive months and the biggest in any since May 2004. It far exceeded City expectations that the claimant count would be reduced by 5000.
Unemployment also fell on the government's preferred International Labour Organisation measure in the three months to December, for the first time in more than two years.
The data indicate that despite concerns about the impact of increased interest rates and a possible slowdown in export markets, employers were confident enough to keep hiring at the turn of the year.
In Scotland, where the strength of the labour market helped spur a period of above-trend growth last year, claimant count unemployment fell for the seventh month running in January.
The numbers in employment in Scotland increased by 33,000 in the three months to December, to 2,507,000 people, the highest since records began in 1992. Across the UK, employment rose by 51,000, to a record high of 29.04 million.
Economists agreed that the data provided signs of a tightening in the labour market, which might trouble interest rate hawks at the Bank of England.
However, economists also noted that the rate of growth in average earnings fell from 4.1% in the three months to September to 4% in December, based on the three-month average of the annual rate.
Excluding bonuses, earnings growth slowed to 3.7% in the latest period, from 3.8%.
City experts had forecast increases of 4.2% on the headline measure and 3.8% excluding bonuses.
Signs of a weakening in wage pressures may reflect the fact that the numbers seeking work have been swollen by immigrants from eastern Europe. Additionally, Lucy O'Carroll, director of research at HBOS treasury services, noted many women of pension age had been re-entering the job market, possibly in order to supplement their pensions.
These are developments that may be welcomed by interest rate doves at the Bank of England.
However, while the Engineering Employers' Federation said manufacturing pay rises averaged less than 3% in January, experts said people should not read too much into official data on pay covering the October-to-December period.
"The Bank of England is far more concerned with pay trends during the current January-April pay round, when two-thirds of all settlements are agreed," said O'Carroll.
While the labour market expanded, the number of jobs in the beleaguered manufacturing sector fell by 63,000 in the three months to December compared with a year earlier, to just over three million, the lowest on record.
The employment rate was 76.1% in Scotland, 1.5 percentage points higher than in England. The claimant count rate in Scotland fell by 0.1 percentage points in January, compared with December. At 3.1% it remains close to the historical low.
Unemployment in Scotland on the ILO measure was 139,000 in October to December, up 7000 on the previous quarter and 3000 on the same period a year ago. The ILO unemployment rate was up 0.2 percentage points on the quarter, to 5.2%, unchanged in the year.
In the UK, 1.69 million people were unemployed on the ILO measure in October to December, down 23,000 on the quarter but up 133,000 on the year.
The ILO unemployment rate in the UK was 5.5%, down 0.1 percentage points on the quarter but up 0.4 points over the year.
The claimant count was 2.9% in January, the lowest since February 2006.
The number of people classed as economically inactive, including those looking after a relative or not seeking work, increased by 19,000 to 7.85 million, 21% of the working-age population.