Jobless rate soars 42% in Fox Valley

• In June, 83,700 unemployed: Local workers sidelined as the economy keeps slipping

July 25, 2008
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By ROWENA VERGARA rvergara@scn1.com

Peggy Shots had it all planned out.

In a few years, the 57-year-old from Aurora would retire, and in just one more year, she'd reach 30 years with Farmers Insurance, an anniversary that would bring her a hefty bonus.

But on June 30, she lost her job. The company decided back in January to outsource Shots' insurance underwriting position and consolidate all duties into three offices across the country.

She could've relocated to Kansas or Texas with many of her colleagues, but that was never part of Shots' original plan.

"I've had 57 years in this town, and I'm not leaving," she said.

So for the last six months, she has tried to find work. On Thursday, she finally brought herself into the Illinois Department of Employment Security's resource center in North Aurora, where she inquired about unemployment benefits.

Shots hopes she can still enjoy her retirement the way she always wanted.

"I'm just trying to supplement myself a little bit with unemployment benefits as I look for a part-time job," she said, sitting alongside many others filing for benefits in the busy office.

According to the latest employment data from the state released Thursday, unemployment has hit hard in every major metropolitan area throughout Illinois.

In the Fox Valley alone, about 83,700 people throughout Kane, Kendall, DuPage and Will counties were unemployed during the month of June. At this time last year, about 58,580 were unemployed, which translates to a 42 percent increase in the number of unemployed.

Among counties in the Fox Valley, Kendall County endured the largest spike. The jobless rate jumped from 5.0 in June 2007 to 7.6 in June 2008, a 52 percent increase.

Unemployment rates for other counties also are on the rise. Comparing June 2007 to June 2008, Kane County's jobless rate jumped 39.2; DuPage County, 39.5 percent; and Will County, 41.2 percent, according to the Illinois Department of Employment Security.

It's a trend hitting every area of the state, said Norman Kelewitz, an employment data analyst with IDES.

"A lot of what's going on in the local area has to be going on with problems nationally. In the overall Chicago metro area, there have been some job losses in construction, manufacturing and financial activities," he said.

IDES Director James P. Sledge said in a press release that with the downturn in the economy and decreased consumer confidence, a comprehensive capital plan for Illinois is imperative now more than ever.

"While some areas have experienced moderate job growth, it has not been enough to absorb the number of jobs being lost," he said.

Big Changes Coming to Northwest Beer Distribution Business

Mt. Hood Beverage, Columbia Distributing Co. and Gold River Distributing are merging and as a result the three firms will be ceasing operations at about 25 distribution centers and laying off more than 2,625 workers across Oregon and Washington. All of the layoffs may not be permanent as the three firms integrate operations in "the next few years."

The merger includes their beer and non-alcoholic beverage distribution businesses in Oregon and Washington, but does not include their wine distribution businesses.

"Industry dynamics are changing at a really rapid pace. The Miller and Coors merger announcement last fall presented a chance for us to look at the opportunities a potential merger would create for all of our stakeholders," said Steve Lytle of Mt. Hood Beverage and co-owner of Gold River Distributing. "After talking with Columbia, we realized that all three companies share common vision and values. It was obvious that a merger would add value for our employees, suppliers, customers and the communities we service in a sustainable and long term way."

"This merger increases the ability for both companies to build a team that will effectively manage the significant increases in the current cost of going to market," said Gregg Christiansen of Columbia Distributing. "Fuel costs have risen sharply, increasing our need to analyze the total number of vehicles we put on our streets as well as the number of miles being driven. Creating a more efficient, combined business in the Pacific Northwest will help enable us to successfully tackle these challenges while still servicing our valued customers and consumers in a timely and more environmentally sustainable manner."

The new organization, which will be named CoHo Distributing, will have annual sales of more than 35 million cases of beer and non-alcoholic beverages and is planning to operate out of consolidated facilities in Seattle, Everett, Portland, Eugene, Medford and Bend.

The company's headquarters will be based in Portland. CoHo Distributing will remain principally owned by the combined existing ownership of the Agnew and Lytle families, the families of Ed Maletis and Ron Fowler, and the principals of Endeavour Capital.

The proposed merger will require the approval of each of the companies' suppliers, who have been notified of the planned merger. This process is expected to take several months with the goal of closing the transaction by early fall.

The permanent reductions will begin Sept. 15 at the following Mt. Hood locations:

* 3601 NW Yeon in Portland, 386 workers
3522 SE Ferry Slip Road in Newport, 13 workers

* 1838 N. Main St. in Warrenton, 8 workers

* 4011 Industrial Ave. in Springfield, 136 workers

* 200 Hawthorne Ave. SE, Suite D484, in Salem, 44 employees

* 1350 NE Cedar in Roseburg, 9 employees

* 1640 Maple St. in North Bend, 16 employees

* 20735 High Desert Lane in Bend, 79 employees

* 3625 Crates Way in The Dalles, 8 employees

* 401 N. Keys Road in Yakima, WA, 63 employees and

* 6420 W. John Day in Kennewick, WA, 47 employees.



The Mt. Hood Beverage operations in Yakima and Kennewick, WA, will be included in the merged company effective January 2009.

Layoffs will begin Sept. 15 at the following Columbia Distributing locations:

* 6840 N. Cutter St. in Portland, 481 employees

* 2600 Prairie Road in Eugene, 136 employees

* 200 Hawthorne Ave. SE, Suite F604, in Salem, 34 employees

* 1305 SE Armour Way, No. 1, in Bend, 36 employees

* 4621A Gruman Drive in Medford, 46 employees

* 840 S. Front St. in Coos Bay, 27 employees

* 92 Hamburg, Unit G, in Astoria, 27 employees

* 2501 E. Valley Road in Renton, WA, 773 employees

* 16910 59th Ave. NE, in Arlington, WA, 100 employees

* 1465 Slater Road in Ferndale, WA, 20 employees and

* 3301 SE Columbia Way, Bldg. 45, in Vancouver, WA, 40 employees.



And layoffs will begin Sept. 15 at the following Gold River locations:

* 501 Airport Road in Medford, 117 employees

* 6025 Wesgo Drive in Klamath Falls, 16 employees and

* 620 S. 9th St. in Lakeview, two employees.

274 layoffs ‘difficult but necessary’

MLP's agriculture, resort and real estate enterprises are all suffering major losses
STORY SUMMARY »

Maui Land & Pineapple Co. announced today it will lay off 274 employees in an effort to stem losses from rising energy and operating costs.

It is the largest Maui layoff in recent memory, surpassing the 271 employees laid off in the closure of Lahaina's Kapalua Bay Hotel in 2006, said James Hardway, special assistant to the director of Labor and Industrial Relations.

Hardway said it could take a few months to know whether Maui businesses can rehire the workers.

Kahului-based MLP estimates it will save $11 million in annual operating costs.

The cuts represent a 26.2 percent decrease in MLP's 1,045-person work force. MLP's agriculture segment, Maui Pineapple Co., will be the hardest hit, losing 204 jobs, or about half its work force.

MLP's Kapalua Resort on Maui is cutting 46 jobs, and 24 positions will be lost in the corporate and community development unit.

"This is a difficult but necessary decision as we respond to higher energy-related costs in our operating units and sluggish conditions in the real estate market," David Cole, MLP's president and chief executive officer, said in the statement.

Maui Mayor Charmaine Tavares called it a sad day.

Some workers said this morning as they headed into meetings at the pineapple plant in Kahului that they felt more layoffs might be coming, in light of previous layoffs.

"We knew something like this was going to happen, considering the company's downsizing," said Jerry Javier, the lead machinist.

"But we didn't know when it was going to happen."

Rosalio Bio said he's unsure about the future.

"It's really sad," Bio said.

Bennigan's, Steak & Ale Close,

By JEFFREY MCCRACKEN and JANET ADAMY
July 29, 2008 12:47 p.m.

National restaurant chains Bennigan's and Steak & Ale have closed their doors and filed for Chapter 7 bankruptcy protection, shuttering more than 300 locations and letting go of thousands of employees.

It is one of the country's largest restaurant bankruptcies and eliminates two sit-down chains that have been part of the casual-dining landscape for decades. The chains will liquidate and aren't likely to re-open.

Late Monday, managers at Bennigan's and Steak & Ale were told not to open restaurants the next day, according to two people familiar with the matter. Employees were told there wouldn't be enough money to pay them for the rest of the week, these people said.
[Photo]
Reuters
The Bennigan's Grill and Tavern in Arvada, Colo.

Leah Templeton, a spokeswoman for the company, said in an email that the companies that filed bankruptcy cases are popularly known as Steak & Ale, Bennigan's and Tavern restaurants. She said that not all stores using these trade names have filed bankruptcy, and that stores operated by franchisees aren't named as debtors in these filings. She said the filing doesn't include the company's Ponderosa and Bonanza restaurants, which operate under Metromedia Steakhouses Company L.P.

The pub-themed Bennigan's had 310 restaurants in 32 states. It was founded in 1976. It is heavily concentrated in states like Texas, Illinois and Michigan. It posted U.S. sales of $542 million in 2007, according to Technomic Inc., a food-industry research and consulting firm.

The restaurant chains are owned and managed by Plano-based Metromedia Restaurant Group, a unit of billionaire John Kluge's Metromedia empire.

Metromedia also manages Bonanza, Ponderosa and 29 Degrees and Southlake Tavern. The latter two also are closing. 29 Degrees opened in March 2007.

Metromedia Restaurant Group earlier this year violated several terms of a lending agreement with GE Capital Solutions. It had been in negotiations with lenders for months to stave off the filing, while closing some stores and looking for a buyer, said two people involved in the matter.

The filing is the most extreme sign yet of how midpriced sit-down restaurants are undergoing one of their worst periods in decades. High ingredient and labor costs are eating into profits, and several years of rapid expansion by bar and grill chains has left a glut of locations in the market. Pressures on consumer spending like high gasoline prices and dwindling home values have prompted consumers to eat out less often or switch to cheaper fast-food meals.

Earlier this year, the parent companies of the Bakers Square, Village Inn and Old Country Buffet filed for Chapter 11 bankruptcy protection, citing falling sales and rising food costs. A host of other chains -- from Outback Steakhouse to Ruby Tuesday -- are also struggling.

Metromedia has about 750 company and franchised restaurant sites in more than 40 states and outside the U.S., according to its Web site. Its annual U.S. sales are estimated at $1 billion.

Mr. Kluge, a 93-year-old German immigrant with an estimated worth of $9.5 billion, originally bought Bonanza and Ponderosa in the 1980s, later adding the Bennigan's Grill & Tavern and Steak & Ale chains into one umbrella company. Mr. Kluge is chairman, CEO and president of holding company Metromedia Co.

Metromedia's steak houses -- Ponderosa, Bonanza and Steak & Ale -- are concentrated in states including Ohio, Indiana and Pennsylvania. It posted 2007 U.S. sales of $388 million from 370 sites.

Write to Jeffrey McCracken at jeff.mccracken@wsj.com and Janet Adamy at janet.adamy@wsj.com

Stoughton Trailers expects 184 layoffs in shuttering its Brodhead site

Stoughton Trailers, LLC, of Stoughton, notified the Wisconsin Department of Workforce Development that the semi-trailer manufacturer would be closing its Brodhead facility and laying off the approximately 184 employees at the facility, 302 23rd St.

According to a letter dated July 16 written by the company's Vice President of Human Resources, Patrice Gillespie, Stoughton Trailers expects the Sept. 17 closing to be temporary, though its exact duration is unknown at this time. The company laid off 120 employees in 2007.

Higher fuel prices have been hitting Wisconsin's trucking industry hard. WH Transportation Co. of Wausau announced 340 job cuts in June. Stoughton Trucking, affliated with Stoughton Trailers, had said it avoided expected layoffs last month by downsizing operations. Madison's Koschkee Transfer shuttered in April. According to AAA's Fuel Gauge Report Wednesday, current diesel fuel prices average $4.73 per gallon in Wisconsin, compared to $3.04 per gallon a year ago.

Employers Took 1,643 Mass Layoff Actions In June

Wednesday morning, the Department of Labor released its report on mass layoffs in the month of June, showing that layoff events were the highest for the month of June since 2003.

The report showed that employers took 1,643 mass layoff actions in June, as measured by new filings for unemployment insurance benefits during the month.

The Labor Department said that each action involved at least 50 persons from a single employer, with the layoffs involving a total of 165,697 workers

While the number of mass layoff events in June increased by 17 from the previous month, the number of associated initial claims was 5,690 lower.

The report also said that employers in the manufacturing sector took 541 mass layoff actions, resulting in 76,514 initial jobless claims. The Labor Department said both measures were at their highest monthly levels since August of 2003.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

Schreiber Foods to close Wisconsin Rapids plant

Schreiber Foods Inc. will close a dairy plant in Wisconsin Rapids, resulting in the loss of 135 jobs.

The Green Bay-based cheese and dairy products manufacturer informed state officials through a Worker Adjustment and Retraining Notification letter to the Wisconsin Department of Workforce Development that the layoffs are expected to begin Sept. 18. Employers are required to give the state 60 days notice of a mass layoff under state law.

The company intends to close the plant in Wisconsin Rapids on Sept. 30 and move production to a plant in Carthage, Mo., according to media reports.

Hofstra prof: Young people hit hard by unemployment

BY OLIVIA WINSLOW | olivia.winslow@newsday.com
7:33 PM EDT, July 22, 2008

Young people are suffering a "surprising decline" in their economic status, says a Hofstra University economics professor.

Hofstra professor Gregory DeFreitas edited and contributed two chapters to a book out this month: "Young Workers in the Global Economy: Job Challenges in North America, Europe and Japan." It gathers analysis by several economists, examining such issues as employment abuse among young workers, inequality of earnings among young workers, trends for health insurance and job fatalities.

"The main focus of the book is on the U.S., and in the U.S. we found that the employment rate among youth has fallen to its lowest on record," said DeFreitas, also director of the university's Center for the Study of Labor and Democracy, citing a figure of 32 percent.

Actually, the U.S. Department of Labor's Bureau of Labor Statistics reports the "seasonally adjusted" employment rate for 16- to 19-year-olds was 33.1 percent in June 2008, said Martin Kohli, regional economist in the department's New York office.

DeFreitas noted that in the 1950s, around 50 percent of teenagers were employed. Kohli, in a separate interview, said Labor Department statistics show that in the 1950s, the percentage of employed teenagers hovered in the high-40s, and that as recently as 1998, 45 percent of teenagers had jobs.

The national unemployment rate among 16- to 19-year-olds was 18.1 percent in June 2008, DeFreitas said, 2 percentage points higher than a year ago, citing current Labor Department statistics. (Young people not looking for work are not included in the unemployment rate). For all workers aged 16 to 24, the unemployment rate was 12.6 percent this past June, up from 10.6 percent from a year ago.

In New York State, the unemployment rate for teens was 17.6 percent in 2007, the most recent year available. That was a decrease from the 19.2 percent rate in 2006, the year that saw a sharp rise in the unemployment rate from 2005, when it was 13.9 percent, according to Bureau of Labor Statistics data. For 20- to 24-year-olds in New York, the unemployment rate was 9.6 percent in 2007, up from 9 percent in 2006.

Weak job growth for the past half-dozen years, DeFreitas said, "really hits youth quite a bit." While there is no age breakdown on the unemployment rate for Long Island workers, Kholi noted that job growth on Long Island has been "flat recently, so that people from a variety of age groups are going to be facing difficulty."

DeFreitas said the job plight among young workers has a ripple effect on households and families.

"More and more adults in the U.S. and elsewhere are under greater economic distress," DeFreitas said. "In that scenario, whatever young people can bring in matters more and more."

Ky.’s Jobless Rate Up

(Elsa Garrison/Getty Images)
(Elsa Garrison/Getty Images)
Web produced by: Jessica Noll

Kentucky’s seasonally adjusted preliminary unemployment rate for June 2008 rose to 6.3 percent from May 2008’s revised 6.2 percent, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet. June 2007’s jobless rate was 5.5 percent.

The U.S. seasonally adjusted jobless rate stayed at 5.5 percent from May 2008 to June 2008, according to the U.S. Department of Labor.

Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count people working.

"The Kentucky economy, weighed down by soaring food and energy prices, the housing crisis, and a softening in the labor market, treaded water in June 2008. Non-farm employment decreased by 4,400 positions. However, the vast majority of this decline is attributed to temporary layoffs," says Justine Detzel, OET chief labor market analyst.

Four of the 11 major nonfarm North American Industry Classification System (NAICS) job sectors reported employment increases in June 2008, while seven decreased, according to OET.

A decrease of 4,400 jobs in June 2008 brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,874,700. Since June 2007, Kentucky’s nonfarm employment has climbed by 3,600.

According to the seasonally adjusted employment data, the trade, transportation and utilities sector grew by 1,000 jobs in June 2008. This area includes retail and wholesale trade, transportation and warehousing businesses, and utilities, and it is the largest sector in Kentucky with 391,800 employees.

Since June 2007, the number of jobs in this sector has jumped by 4,900.

"Retail trade businesses accounted for the majority of the 1,000 jobs added since May 2008, reflecting a store opening and an expansion at a different retailer. All industries in the sector reported year-over-year job growth, with the majority of these employment gains occurring in retail trade enterprises," Detzel says.

The construction sector recorded 700 more positions in June 2008. Since June 2007, employment in this sector has increased by 2,100 positions. "This is the third consecutive month of employment gains in the construction sector, which is reflective of strength in specialty trade contractors," says Detzel.

The government sector, which includes public education, public administration agencies, and state-owned hospitals, added 500 positions in June 2008. Since June 2007, this sector has risen by 9,200 jobs.

"A majority, 5,700, of the year-over-year employment gains in the government sector occurred in the local government subsector," says Detzel.

Between May 2008 and June 2008, the number of positions in the natural resources and mining sector rose by 100 jobs. Since June 2007, the segment has gained 300 jobs.

The manufacturing sector lost 4,200 jobs in June 2008. Compared to June 2007, jobs in the sector were down by 10,700 in June 2008.

"This is the fourth time this year that manufacturing employment has declined. The durable goods subsector accounted for these job losses. This employment decrease reflects layoffs at major manufacturers and a plant closing," Detzel says.

"While the year-over-year employment decrease in manufacturing is concentrated in the durable goods subsector, both the nondurable goods and durable goods subsectors experienced extensive employment losses. With the fragile economy and an anemic job market, consumers have become reluctant to reach into their wallets and purchase big ticket items such as automobiles. Financially strained consumers, faced with sluggish wages amid surging energy and food costs, are reducing discretionary purchases in effort to make ends meet," she says.

Kentucky’s educational and health services sector lost 1,000 jobs in June 2008. Since last June, this segment has shrunk by 1,900 jobs. This sector includes private and nonprofit establishments that provide either education and training, or health care and social assistance to their clients.

Kentucky’s leisure and hospitality sector reported an employment loss of 600 jobs in June 2008. Since June 2007, employment in the sector has increased by 1,000 positions. The leisure and hospitality sector includes arts, entertainment and recreation, accommodations, and food services and drinking places industries.

The number of jobs in the financial activities sector decreased by 400 in June 2008. This segment, which includes businesses involved in finance, insurance, real estate and property leasing or rental, has added 300 positions over the past 12 months.

"This is the fourth consecutive month of employment losses in the financial activities sector. Of those 400 jobs that were lost in this sector in June 2008, 100 were in the real estate and rental and leasing industry, which is reflective of weakness in the housing market and the credit crunch. Both of these factors act to reduce mortgage and home-equity loan applications," Detzel says.

The state’s other services sector, which includes such establishments as repair and maintenance businesses, personal and laundry services, religious organizations, and civic and professional organizations, decreased by 200 jobs in June 2008.

This area had 100 fewer jobs in June 2008 than in June 2007.

The number of jobs in the professional and business services sector dropped by 200 in June 2008. This area had 1,100 fewer employees in June 2008 than in June 2007.

The professional and business services sector includes professional, scientific and technical services, management of companies, and administrative and support management, including temporary help agencies.

The information sector fell by 100 jobs in June 2008. This segment, which includes firms involved in publishing, Internet activities, and broadcasting and news syndication, has lost 400 positions since June 2007.

The U.S. Bureau of Labor Statistics’ monthly estimate of the number of employed Kentuckians for June 2008 was 1,913,340 on a seasonally adjusted basis. This figure is down 6,469 from the 1,919,809 employed in May 2008, and down 18,971 from the 1,932,311 employed in June 2007.

The monthly estimate of the number of unemployed Kentuckians for June 2008 was 128,294, up 647 from the 127,647 Kentuckians unemployed in May 2008, and up 15,547 from the 112,747 unemployed in June 2007.

The monthly estimate of the number of Kentuckians in the civilian labor force for June 2008 was 2,041,634. This figure is down 5,822 from the 2,047,456 recorded in May 2008, and down 3,424 from the 2,045,058 recorded for June 2007.

Civilian labor force statistics include non-military workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.

Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays and school openings and closings.

Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, because of the small sample size, county unemployment rates are not seasonally adjusted.

Learn more about the Office of Employment and Training at Workforce.Ky.Gov.

A complementary experimental hours and earnings series is available, click here.

Thousand Trails announces 144 layoffs in Frisco

Thousand Trails LP expects to eliminate 144 positions at its Frisco headquarters when a planned sale of the company to Equity LifeStyle Properties Inc. is complete, the company said in a letter to the Texas Workforce Commission.

The Frisco-based operator of RV camping and outdoor preserve communities says an additional 97 employees working off-site will lose their jobs, bringing the total staff reduction to 241 employees. Most of the positions are tied to administrative functions at the company’s Frisco headquarters.

Chicago-based real estate investment trust Equity LifeStyle Properties Inc. (NYSE: MHC) said in July that it would acquire Thousand Trails from its parent company, Privileged Access.

In May 2002, Thousand Trails was awarded $125,000 in cash incentives from the City of Frisco, for moving its headquarters and 100 jobs from an office building along Interstate 635 to Parkwood Office Center in Frisco. The company says the staff reductions will take place on or around Sept. 24.

Newspaper: UMDNJ considering 300 layoffs

NEWARK, N.J. - Officials at the University of Medicine and Dentistry of New Jersey are considering up to 300 layoffs in an effort to close a near $50 million hole in next year's budget.

The Star-Ledger of Newark reports the school is planing to eliminate positions _ including nurses, technicians and maintenance staff _ at its University Hospital.

Cuts are also being considered in the administrative, clerical and support staff from UMDNJ's central administration.

UMDNJ president William Owen Jr. tells the newspaper that leaving current vacancies open doesn't go far enough in closing the budget gap.

Silver Fern layoffs good for Alliance, bad for PGG deals

By Mitchell Hall
Tuesday July 22 2008 - 12:29pm
Keith Cooper. Photo: NZPA/John McCombe

Silver Fern farms shedding potentially 250 jobs means overcapacity concerns regarding an Alliance group merger have been addressed, and the PGG Wrightsons deal looks ever more distant.

Two sheep and lamb slaughter plants in Canterbury are to be shut following an announcement this morning by Silver Fern farms.

Silver Fern Farms chief executive Keith Cooper said closure was the final instalment of its Project Rightsize for 2008, designed to align processing capacity with reduced supply.

NBR analyst Hugh Stringleman says that this means the proposed PGG Wrightson takeover looks less likely than it did initially, because “Farmers’ returns from lamb and beef are going up virtually day by day, and if Silver Fern can do all this rationalisation on its own, why does it need Pyne Gould Guinness Wrightson to assist?”

Silver Fern’s move will address previous Alliance concerns about debt, exposure and overcapacity.

“The better outcome for farmers would be to retain 100 percent cooperative ownership and do the merger with Alliance”, said Mr Stringleman.

A non cooperative investor such as Pyne Gould Guinness would have to stay under a 40 percent shareholding in order for a co-op to retain its cooperative status.

However, Mr Stringleman pointed out that if the PGG Wrightson proposal with Silver Fern went ahead - with the Alliance merger occurring afterwards, farmers would then get back up to around 75 per cent ownership, recovering cooperative status.

Alliance group has not shown any warmth at all to PGG Wrightson’s overtures though, and farmers are even less likely to be won over, with a 75 percent ‘yes’ vote required for any PGG Wrightson deal to proceed.

Slumping U.S. economy blamed for layoffs at Sterling’s St. Thomas truck plant

ST. THOMAS, Ont.

Sterling Trucks is eliminating one of its two remaining shifts and laying off another 720 workers as of November 2008, as the southwestern Ontario manufacturer joins the growing ranks of companies being squeezed by an economic slowdown in the U.S.

A year ago, Sterling laid off an additional 600 people in St. Thomas when another shift was cut, said Dave Elliott, president of the Canadian Auto Workers Local 1001.

Back when there were three shifts, “We built trucks pretty much 24 hours a day, five days a week,” Elliott said.

But with the economy in a slump, “freight’s not moving, construction is down — nobody is buying trucks.”

Sterling Truck is headquartered in Redford, Michigan, and is a subsidiary of Daimler Trucks North America of Portland, Oregon.

The facility produces a range of vehicles under the Sterling brand, from small delivery trucks and highway rigs to cement mixers and garbage trucks.

Canadian Press

Layoffs loom at auto supplier

Officials at Blue Water Automotive Systems Inc. say anxious creditors and rising oil prices could lead the company to close down within 90 days, prompting approximately 1,400 layoffs, more than 200 of which would come from its plant just west of Howell.

Closure is the worst-case, and most likely, scenario, said James Sampson, president and chief executive officer.

"I don't want to give false hope, but I don't want hopelessness either," Sampson said, adding employees were being notified of their potential job loss late last week.

Fred Dillingham, executive director of the Economic Development Council of Livingston County, plans on meeting with Blue Water officials Thursday in Howell Township. Dillingham wouldn't disclose the nature of the talks.

"The situation is still very fluid," Dillingham said. "Things are very sensitive right now on several different fronts. Our role is to provide and identify everything that can be done form a local ... and state level to keep the company thriving in Livingston County."

Blue Water officials have had a rough time trying to sell the business.

Sampson said the most recent bid from a company interested in taking over Blue Water fell through Wednesday. A $16 million bid from Flex-N-Gate in Illinois was rejected after officials realized it would not satisfy their main creditor, CIT Group/Business Credit Inc., and its affiliate CIT Capital USA.

More than 40 objections to the bid officially were made to the bankruptcy court by the company's various creditors.

CIT estimates it holds $30 million in company assets, including buildings and equipment. The company makes plastic parts for the automotive industry.

Sampson said the company's creditors were paying closer attention to profit than worker livelihood.

Since filing for Chapter 11, Blue Water has struggled to find a way to get out of bankruptcy protection before Aug. 11, when it must submit an exit plan to the bankruptcy court.

In early June, NYX of Livonia made a bid for the company, which was rejected.

This month, General Motors Corp. initiated a lawsuit against Blue Water asking for $4.98 million in damages stemming from what the automaker characterized as breach of contract and unpaid bills.

With the Flex-N-Gate bid failing, Blue Water will start to be dismantled by its various creditors in 60 to 90 days. The company, Sampson said, was at the center of a "perfect storm."

The rising price of petroleum products smacked the company twofold.

First, American auto companies were unprepared for a shift in consumer preference, from large sport utility vehicles to smaller, more fuel-efficient models. Last year, U.S. car companies sold 15.8 million vehicles. This year, just 14.7 million are expected to be sold, Sampson said.

Second, Blue Water's main manufacturing component, oil-derived resin, saw a rise in price almost as dramatic as gasoline. Two years ago, the company paid 70 cents a pound for resin. This year, it's paying close to a dollar a pound.

Though going out of business is the most likely scenario, Sampson said two other situations are possible.

The business could condense, selling off some of its assets and retaining a number of employees, similar to what happened to Plastech's Port Huron facility.

Or, the company could receive another bid.

"It is still our hope that the players involved can agree to allow us to remain in business," Sampson said.

He said CIT long had given the ultimatum of "give me all my money or give me back all my buildings and machines."

"Well, now they might get a lot of empty buildings," Sampson said.

Contact Daily Press & Argus reporter Kristofer Karol at (517) 552-2835 or at kkarol@gannett.com.

States Industries announces layoffs

Pechanga Casino Announces 400 Layoffs

American Airlines To Cut 1,500 Jobs In Maintenance

Unicredit Bank To Cut 9.000 Jobs

Hundreds Of United Pilots To Be Laid Off

In tough times, workers in Mass. go for seconds

Many forced to extra jobs as costs soar
By Ira Kantor and Katy JordanSunday, July 20, 2008

Finding a second job is fast becoming a first priority for stressed-out workers across Massachusetts.

Statistics show the number of Bay Staters holding or seeking extra employment has risen by about 16 percent in just five years, as breadwinners cope with stagnant wages and stagger under the backbreaking costs of everyday life.

Now, many moonlighters are skilled professionals like Dr. Daniel Muse of Brockton - people who long imagined that a single, hard-earned career would carry them through to retirement.

“I work regular hours here and additional shifts here and at other hospitals,” said Muse, 52, an attending emergency room doctor at Signature Healthcare Brockton Hospital and father of five. “I don’t own a second home; we don’t live ostentatiously. We’re living, even at my earnings, paycheck to paycheck. Everyone feels the pain.”

Data from the Bureau of Labor Statistics show that 5.6 percent of state workers were multiple jobholders in 2008, as compared to 4.8 percent in 2003 - a 16.7 percent jump. That trend jibes with data showing that 7.794 million Americans held multiple jobs in 2008, up from 7.135 million in 2000.

Academics, job recruiters and the workers themselves say people from across the employment spectrum will be competing ever harder for extra work come the fall, as the pain of tough times settles in.

“It is clear people are making all kinds of adjustments,” said Tom Kochan, professor of management at MIT’s Sloan School. “You see people taking on more overtime whenever possible. You see people taking on part-time jobs, and working off the books on contract jobs and maintenance jobs and home repair, using skills they maybe didn’t draw on for a while.”

Take Desi McElroy. At an age when retirement should be on his mind, the 60-year-old Irish resident of Watertown not only operates the Mugar Memorial Library mailroom at Boston University, but also bartends and works as a rental agent at his Hibernian Hall, clocking in 60 work hours a week.

McElroy depends on the extra money to cover car and house maintenance payments. “Without one of the jobs, I would probably just be able to get by,” he said.

McElroy isn’t the only baby boomer relying on multiple jobs to pay bills. With gas and food costs escalating daily, high-end professionals - among them lawyers, doctors, graphic designers and restaurateurs - are unable to support families with a solo occupation.

“There’s no job growth out there,” said Andy Sum, an economics professor and director for the Center of Labor Studies at Northeastern University. “Over the next year, you will find more workers who would like a second job but might find it difficult.”

Gary Carlow of Preferred Temporaries agreed. “I haven’t been registering new people because I’ve got so many people already registered with us,” he said.

Sum said the ability to suddenly land extra work depends more oneducation level than age.
“If you’re young and poorly educated, you’re the least likely to have a second job, because most people can’t even get a first job,” he said. “The more schooling you’ve got, the more chances you’ve got.”

With gas over $4 a gallon, many applicants will limit opportunities by refusing long commutes. “A lot of people are driving 40, 50 miles a day, which is too much,” Sum said.

Jon Sawyer of Adecco Employment Services said applicants look for second jobs in either customer service or retail because multiple and weekend shifts are offered.

“People are looking to supplement income based on the costs of gas and food,” he said. And if economic trends continue, many baby boomers will soon be competing with recent college grads for labor.

“That’s one of the biggest tragedies of this recession or this global job market,” Kochan said.

Jobs outlook weak as state's unemployment rate hits 6.9% in June

Small rise from May brings the gauge to a nearly five-year high. The Los Angeles area has suffered substantial losses since a year earlier.
By Marc Lifsher, Los Angeles Times Staff Writer July 19, 2008
SACRAMENTO -- California's jobless rate crept ahead Friday as experts saw weakness spreading into new areas of the economy.For months, job losses were concentrated in the state's housing industry. But with June's increase of one-tenth of a percentage point to 6.9%, it was evident that a broader downturn is underway.


Chart: Unemployment rate rises in CA.
Dow keeps week's hefty gains
Freddie Mac takes steps toward selling $5.5 billion in stock
In all, the state lost 12,800 jobs in June compared with May. The number of government workers fell 6%, while professional and business positions declined 5.2%, manufacturing 4.4% and the information sector, which includes television and film production, 2.6%. Retail trade dropped 2.5%, according to an analysis of state figures by Beacon Economics, a Los Angeles consulting firm.Construction, which led the decline in previous months, dropped 2.1% in June.
FOR THE RECORD:This article uses percentages in quantifying job losses of varying types. The statistics should have been rendered in terms of thousands of jobs lost. Therefore, the number of government workers fell by 6,000, not 6%; professional and business positions declined by 5,200, not 5.2%; manufacturing jobs fell by 4,400, not 4.4%; and the information sector declined by 2,600 jobs, not 2.6%. Retail trade positions dropped by 2,500, not 2.5%.
FOR THE RECORD:California jobless rate: An article in Saturday's Section A about California's June unemployment used percentages to quantify the kinds of jobs lost. As a correction published Sunday said, the statistics should have been expressed in terms of thousands of jobs lost. The Sunday correction included corrections in five categories but failed to include one statistic from the article: The article cited a 2.1% drop in construction jobs in June compared with May; it should have listed that June decline as a loss of 2,100 jobs. The other correct figures are: the number of government workers fell by 6,000; professional and business positions declined by 5,200; manufacturing jobs fell by 4,400; the information sector declined by 2,600 jobs; and retail trade positions dropped by 2,500. —
"The June data give the first indication that job losses are now more and more being caused by consumers slowing down their spending and not just the sharp housing losses," said Stephen Levy, director and senior economist at the Center for the Continuing Study of the California Economy in Palo Alto.The weakness is likely to be exacerbated by high energy prices cutting into people's buying power, economists predict.They point to reports of corporate layoffs that have been vying with the presidential campaign for public attention this summer. Late last month, Bank of America Corp. said it would slash 7,500 jobs over two years as the result of its acquisition of Calabasas-based Countrywide Financial Corp.This month, Starbucks Corp. said it planned to close 88 California outlets, employing more than 1,500 baristas. Century City-based Northrop Grumman Corp. halted plans to hire 750 engineers after the Pentagon decided to rebid a $35-billion air tanker contract it had won earlier. Tribune Co. of Chicago is in the process of laying off 250 workers at its flagship newspaper, the Los Angeles Times.The cavalcade of grim news is prompting John Menou, an unemployed Corona bricklayer, to hunker down for the hard times. "I'm gearing up for the worst," he said."We're tightening the screws in terms of buying things," said the married father of three boys, ages 6 to 12.Menou, 45, has been out of work for six weeks, about three times longer than he usually spends between jobs at large commercial, industrial or government construction sites in Southern California."We're going to go through another heavy-duty recession like in 1992," he said.California's jobless rate is now 1.6 percentage points higher than it was in June 2007 and at the worst level since October 2003, according to data from the state Employment Development Department. It is tied with Mississippi in having the country's third-highest unemployment rate.California is one of a dozen states with jobless rates over 6%. The widespread doldrums prompted Congress on July 1 to extend eligibility for unemployment benefits to 39 weeks from 26, said Maurice Emsellem, a policy director for the National Employment Law Project in Oakland. As many as 1.6 million Californians may qualify for the extended benefits.The jobs picture in the Los Angeles-Long Beach-Glendale metropolitan area topped the statewide numbers in June. The unemployment rate there jumped to 7% from 6.7% in May, 2 percentage points higher than a year earlier.Over the last year in Los Angeles, employment dropped 7.2% in construction, 7% in motion picture and sound recording and 3.3% in the financial sector.In the Inland Empire, job losses have been steeper. June unemployment hit 8% in Riverside and San Bernardino counties, up half a percentage point from May and 2.1 points from June 2007. In Orange County, the monthly unemployment rate rose four-tenths of a percentage point to 5.2% in June, up 1.2 points in a year.The dearth of construction work across the region signals that the paralysis besetting residential construction is spreading to previously immune commercial projects, Chapman University economist Esmael Adibi said."We haven't been hit with the brunt of the construction cutback yet," he said. "Job losses are going to accelerate at least through this year."Howard Roth, chief economist for the governor's finance department, said the 12,800 net job loss in California from May to June, though "not huge," provided concrete evidence that "the economy is still decelerating," with damage spreading to heretofore untouched areas.Particularly surprising, Roth said, was the news that governments lost 6,500 jobs in June. The state accounted for 5,300 of them, and more cutbacks are expected through the summer and fall as Gov. Arnold Schwarzenegger and lawmakers struggle to fill a $15.2-billion hole in the state budget for the fiscal year that began July 1.Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said the elimination of government jobs "is a very bad sign." Civil service jobs traditionally have been "an engine of growth," Kyser said, "but now, they may become a brake on the economy."marc.lifsher@latimes.com

Colorado adds 27,300 jobs in June; jobless rate rises to 5.1 percent

Colorado added 27,300 jobs in June, about average for the month, the Colorado Department of Labor and Employment said Friday but it means job growth has now slowed to 1.3 percent over the past 12 months.
The seasonally adjusted unemployment rate rose two-tenths of a percentage point in June to 5.1 percent. So far this year the state’s jobless rate has averaged 4.7 percent, compared with 3.8 percent for the same period in 2007.
“Although employment growth has been positive, it has been too modest to absorb the state’s expanding labor force,” said Donald Mares, executive director of the state labor department, in a statement.
June is generally a month of rising unemployment in Colorado, as student workers enter the job market. The department pegged total employment at 2,619,900.
The leisure and hospitality industry was up the most, but so was construction, despite a slump in residential.
Job growth in the state has moderated since the beginning of the year in response to anemic national economic growth and continuing weakness in construction, financial services and manufacturing, state officials said.
In June, all industry sectors except manufacturing and government added workers. The biggest employment gain was in the leisure and hospitality sector, as it prepared for the summer tourism season.
Nationwide, nonfarm payroll employment fell 62,000 in June, and the unemployment rate was 5.5 percent, according to recently reported data from the Bureau of Labor Statistics

U.K. Unemployment Jumped the Most Since 1992 in June

By Svenja O'Donnell

July 16 (Bloomberg) -- U.K. unemployment jumped the most in June since the aftermath of the last recession in 1992 as the economic slowdown forced housebuilders and banks to cut jobs and stop hiring.
Claims for jobless benefits climbed for a fifth month, increasing 15,500 from May, the Office for National Statistics said today in London. Economists predicted 10,000, the median of 29 forecasts in a Bloomberg News survey shows. The unemployment rate on that basis was 2.6 percent.
The economy and labor market face ``consequences'' as the Bank of England fights to bring accelerating inflation under control, policy maker Andrew Sentance says. Rising unemployment may exacerbate Prime Minister Gordon Brown's woes after the worst housing market slump since the last recession helped push his party's support close to the lowest since World War II.
``This is clear evidence the labor market is softening,'' said Stewart Robertson, an economist at Morley Fund Management in London, which oversees about $310 billion in assets. ``If we're right on our mild recession call, then the unemployment rate will keep going up.''
The pound fell as much as 0.2 percent against the dollar after the data and traded at $2.0033 as of 12:50 p.m. in London. U.K. government bonds stayed higher, pushing the yield on the two- year gilt down 3 basis points to 4.809 percent.
Unemployment, based on International Labour Organization standards, was 5.2 percent in the three months through May. That compares with 7.2 percent in the euro region, 5.5 percent in the U.S. and 4 percent in Japan, the statistics office said.
Job Cuts
Homebuilders announced more than 4,000 job cuts since the start of July, with Redrow Plc and Bovis Homes Group Plc each saying they will slash their workforces by 40 percent. HBOS Plc, the U.K.'s biggest mortgage lender, said last week that house prices fell in June from a year earlier by the most since 1992.
The collapse of the U.S. subprime mortgage market has cost financial institutions worldwide more than $416 billion in losses and writedowns and led them to shed almost 94,000 staff. Barclays Plc, the U.K.'s fourth-biggest bank, said July 8 it cut about 300 jobs because customer demand is drying up.
U.K. jobless benefit claims rose by the most since December 1992 to 840,100 in June, the highest level in 10 months, the statistics office said.
Next Election
The total may reach 1.3 million by the middle of 2010, the deadline for Brown to call the next election, according to a July 7 forecast by the Centre for Economic and Social Inclusion, a research group supported by the government. The government noted that the number of people with jobs is at a record.
``Employment continues to grow,'' said Stephen Timms, the Labour government's minister for employment. ``The rise in the claimant count is a concern but needs to be seen in context. The number of people on jobseeker's allowance is lower than a year ago and just over half its 1997 level.''
A YouGov Plc poll of 1,800 people showed 46 percent of them predict a recession in the next 12 months, the Sunday Times said on July 13. It also showed the opposition Conservatives have kept their 22 percentage point lead over Brown's ruling Labour Party.
While Lehman Brothers Holdings Inc. says the economy may now be contracting, the Bank of England has been unable to cut the benchmark interest rates from the current 5 percent as policy makers battle to control consumer prices. Inflation accelerated to 3.8 percent in June, the most in at least 11 years, the statistics office said yesterday.
Spending Squeeze
Inflation ``will take time'' to get under control, Sentance said yesterday. ``That will require a squeeze on spending and incomes in the U.K. and other economies, with consequences for economic growth and employment in the short term.''
Central bank Governor Mervyn King said this week that policy makers ``cannot take for granted'' that inflation expectations will stay anchored. Policy makers have said they are watching wage negotiations for signs that they could become dislodged.
Average earnings, excluding bonuses, rose an annual 3.8 percent in the three months through May, compared with 3.9 percent in the quarter through April, the statistics office said. Including bonuses, the figures were exactly the same.
Today's report ``points to further headwinds ahead for the consumer, on top of soaring food and energy prices and the holes that are being blown into household balance sheets by falling house and equity prices,'' said Nick Kounis, an economist at Fortis Bank. The central bank, he said, ``will not be able to respond to the downturn in the economy any time soon.''
To contact the reporter on this story: Svenja O'Donnell in London at sodonnell@bloomberg.net. Last Updated: July 16, 2008 07:52 EDT

Job Layoffs In The Skies And On The Ground

WASHINGTON (NBC) -- Tuseday, General Motors is expected to lay out new cost-cutting measures that will mean more jobs lost. The number one U.S. automaker in sales is changing along with the bigger U.S. economic picture.

Federal Reserve Chairman Ben Bernanke will talk about that Tuesday on Capitol Hill. Expect a focus Tuesday in the Senate on banks: investors started the week fleeing bank stocks, something Fed Chairman Bernanke is bound to address along with the state of air travel and automakers.
Tuesday, job cuts hit travel in the skies. And the ground, General Motors will announce new layoffs, and maybe new plant closures tied to the drop-off in U.S. truck sales.

Midwest Airlines announced it's shedding 1,200 or 40% of its workers. If you're planning a trip, the company says, wait. Michael Brophy, Midwest Airlines Spokesperson, says "if I'm a traveler, a passenger, I think they'll need to wait to see our schedule, we'll communicate that as widely as we can so people can see the impact."

It's more evidence of a transforming U.S. economy. Federal Reserve Chairman Ben Bernanke starts two days of testimony Tuesday. In a rare move, the Fed invited cameras in to publicize its new rules against shady lending. Lenders will have to confirm borrowers' ability to pay the mortgages back, a move critics say is needed to turn a corner.

Rep. Barney Frank, who sits on the House Financial Services Committee, says "I think we are the point where much of the bad stuff is over; that is, we will be reducing the number of foreclosures." And the political tussle on energy continues.

President Bush lifted an executive ban on offshore oil drilling and challenged Congress to do the same but Senate Democrats weren't biting. Senate Majority Leader Harry Reid says "we want oil and gas companies to drill for oil on the leases they've been given."

What passes for good news: gas prices have leveled off, the government says even fell a tenth of a penny. To drivers a welcome break from the upward climb.

This morning, General Motors' CEO Rick Wagoner will address employees first and then hold a news conference to announce the overhaul. Wagoner assured investors he's not interested in seeking the cover of bankruptcy.

Northwest to layoff 2,500

"As you know, our fall schedule will be reduced by 8.5% - 9.5% versus the fourth quarter of 2007.
This includes the reductions previously announced in April.As a result, Northwest Airlines announced today that it will reduce its frontline and management employees by 2,500. These reductions are the direct result of our extraordinary fuel costs and the necessary actions we must take to right-size our airline and eliminate unprofitable flying.

In an effort to reach this reduction by voluntary means, the following is a summary of how each employee group will have the opportunity to voluntarily meet the reduction target.

· IAM represented employees will be eligible to apply for a limited number of early out opportunities based on seniority, classification and customer and operational needs at each location/station and may be also be eligible for lifetime retiree pass privileges under the one-time voluntary “Rule of 60” pass travel program. There will also be SLIP leave opportunities in Airport Operations.
· Flight Attendants have recently completed an early out program and are also participating in the previously announced SLIP leave program.
· Pilots may participate through voluntary programs including a targeted Pilot Early Retirement Program (PERP), a SLIP leave program and a Partial Month Leave (PML) program.
· All other employees, including management, are expected to achieve their goals through attrition and through the elimination of open non-operationally critical positions.The IAM program details will be available soon on RADAR, within the Employee Resource Center, which can be found under Featured Links.

I am pleased that we are offering the means to achieve this headcount reduction goal through voluntary programs. Each department will only evaluate the possibility of layoffs if voluntary programs do not sufficiently reduce staffing overages.

Thank you for your continued support as we work together to help control costs and increase our revenue given the unprecedented oil prices.

Doug Steenland
President and CEO

Air Canada to lay off 630 flight attendants in 3 cities

Lindsey Wiebe , Winnipeg Free PressPublished: Wednesday, July 09, 2008
WINNIPEG - Air Canada has confirmed it will lay off more than 630 flight attendants this fall in Vancouver, Halifax, and Winnipeg.
The bulk of the layoffs will be in Vancouver, where 300 flight attendants will lose their jobs.
"There will be 300 Vancouver-based flight attendants subject to layoff as a direct result of the decrease in international long-haul flying this fall," Air Canada spokeswoman Angela Mah said Wednesday night.
She would not specify a date for those job losses.
The layoffs are part of a company-wide round of 2,000 job cuts, initially announced in mid-June but without any of the specifics on where the loses would come.
In the beginning of November, 145 flight attendants in Winnipeg will get the boot, while the beleaguered airline will also close its Halifax flight attendant base, with a total of 187 positions lost there.
An estimated 78 maintenance workers in Winnipeg who service Air Canada and other flight companies will also be out of work later this month, and at least 80 will lose their jobs in Montreal.
Jazz, the regional feeder carrier for Air Canada, is also slashing 270 jobs.
"This was a very difficult decision to make," Mah said, referring to the Winnipeg layoffs. "The decision to close the Winnipeg base was not made lightly."
Mah said after a review of flights in and out of Winnipeg and the changing nature of inflight services, "it was just no longer viable to base inflight crews at this base."
Meanwhile, union representative Lorne Hammerberg said the 78 maintenance workers with ACTS will be laid off by July 25.
ACTS, formerly Air Canada's in-house maintenance group, is now a private company that serves a number of airlines, including Air Canada as a major client.
ACTS spokeswoman Daniela Pizzuto would not confirm the number of maintenance workers laid off, but stressed that the layoffs were temporary.
"It's because of a reduction in workload," she said. "Air Canada has decided to defer their maintenance costs."
Pizzuto said it's too early to say when the positions might be reinstated.
"We have a bad suspicion it may be longer than anticipated," said Hammerberg, a representative of the International Association of Machinists and Aerospace Workers.

Siemens unveils huge layoff plan involving 16,750 jobs

BERLIN (AFP) — German engineering giant Siemens unveiled on Tuesday one of its biggest restructuring plans ever, saying 16,750 jobs would be cut worldwide, almost one-third of which would be at home.
Siemens, which employs 400,000 people around the globe, said in a statement that most of the cuts, around 12,600, would be in administration and management services, while "restructuring projects" would eliminate another 4,150.
Of the total number of jobs lost, 5,250 would come in Germany, the company said.
"The speed at which business is changing worldwide has increased considerably, and we're orienting Siemens accordingly," the statement quoted Siemens chief executive Peter Loescher as saying.
"Against the backdrop of a slowing economy, we have to become more efficient," he added.
Sites that employed the most number of employees would see the biggest cuts, including German facilities in Erlangen, Munich, Nuremberg and Berlin.
"We want to begin negotiations with the employee representatives quickly in order to make the cuts in a way that will be as socially responsible as possible," personnel director Siegfried Russwurm said.
Loescher said that the sprawling conglomerate, which makes products from light bulbs to power stations and trains, had to catch up with its main rivals, such as the US group General Electric.
He had already set a target of reducing administration and management costs by 1.2 billion euros (1.9 billion dollars) by 201

Frontier, United cutting 606 jobs

The airlines say record fuel costs are forcing the Denver layoffs.
By Greg Griffin The Denver Post

United Airlines will lay off 150 workers in Denver over the next two weeks, and Frontier Airlines will begin laying off 456 people in September, the companies told state officials.
The cuts are the first layoffs in Denver resulting from recent capacity cuts announced by the airlines, which are faltering because of record fuel costs.
The layoffs probably are not the last that the airlines plan to make, based on the scheduled reductions coming this summer and fall. Company representatives, however, would not say whether more cuts are planned.
Frontier's reductions include 155 pilots, but it is unclear whether the bankrupt airline will need to furlough that many of its captains and first officers.
Chicago-based United plans to trim systemwide capacity by 14 percent this year, while Frontier will reduce its capacity by 17 percent this fall.
"This is part of the actions we are taking companywide to enable us to compete in an environment of record fuel prices," said United spokeswoman Megan McCarthy. "We must take these difficult but necessary steps to reduce the number of people we have to run our business."
United said it will lay off 100 baggage handlers and 50 customer-service representatives at Denver International Airport over the next two weeks.
The company has announced plans to furlough 950 pilots and lay off 1,400 to 1,600 salaried and management employees companywide.
United employs 5,300 Denver-based workers.
Frontier said it will lay off 456 workers starting Sept. 1 and has sent letters either directly to them or to their unions. Pilots will be laid off in two waves: on Sept. 1 and Oct. 1.
"The unanticipated and unprecedented rise in the price of fuel has forced Frontier to take these steps in an attempt to remain competitive in this challenging environment," Kevin Stocker, Frontier's senior director of human relations, wrote to the department of labor in a June 27 letter.
Most of the positions affected are pilots and flight attendants, said Bill Thoennes, spokesman for the state labor department.
The airline notified the Frontier Airline Pilots Association that it would furlough 155 pilots, said union chief John Stemmler. That is more than might be expected because 17 percent of Frontier's 718 pilots is 122. Stemmler said he hopes Frontier is erring on the side of caution.
"With fuel prices where they are and the industry in the turmoil it's in, all bets are off. Everybody's in survival mode," Stemmler said. "Most pilots are really pragmatic people. By the time you get to this level of the industry, you're not surprised to see it."
Frontier filed for bankruptcy protection in April and lost $38 million in April and May.
Frontier has said its staff cuts will be proportional to the capacity reductions. Roughly 5,000 of its more than 6,000 workers are Denver-based, which means as many as 850 local employees could be laid off.
The company was required by federal law to notify the state 60 days in advance of a substantial layoff at one location, said Frontier spokeswoman Lindsey Purves.
All of the 456 positions affected are at DIA. Frontier has additional office employees in the area.
Also Monday, Frontier requested an extension in the time it has to restructure and formulate a business plan in bankruptcy without competing plans from creditors.
Its "exclusivity period" ends Aug. 8. The company asked a judge for a 180-day extension, explaining that the case is complex and the airline did not have time to prepare in advance for its April 10 filing.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com

NASA contractors issue layoff notices for 2,300

NASA contractor Space Gateway Support LLC and three of its subcontractors have told the state they plan to layoff a total of nearly 2,300 employees by Sept. 30 as Space Gateway Support's contract for base operations at Kennedy Space Center and Cape Canaveral Air Force Station expires.
However, many of those employees are expected to be rehired by the companies that will take over the functions performed by Space Gateway Support and its subcontractors. The work is being divided into multiple contracts instead of one joint contract. Space Gateway has held the contract since 1998.
Space Gateway Support is laying off 1,725 employees, while Wyle Aerospace Group will lay off 248, Creative Management Technology will lay off 185 and Comprehensive Health Services will lay off 135.
The layoffs are unrelated to the shut down of the space shuttle program, which is expected to cost the area up to 8,000 jobs.

AirTran to lay off up to 480 workers

AirTran Airways said this afternoon that it will eliminate nearly 500 jobs in September, in the latest round of cost cutting forced by record high oil prices.
The Orlando-based airline said it will shed 180 pilots and 300 flight attendants, through a combination of voluntary departures and layoffs. AirTran currently has 1,450 pilots and 2,000 flight attendants.
The staffing cuts will coincide with flight service cuts AirTran has planned beginning in early September, when AirTran says it will shrink its overall capacity by 5 percent. Kevin Healy, AirTran's senior vice president for marketing and planning, said the staff cuts will save AirTran at least $16 million.
The moves come with the entire U.S. airline industry struggling to survive unprecedented fuel costs.
"It's difficult, but it's the appropriate step to take," Healy said. "The key, as we have done in the past, is moving in a way to put ourselves in a position that we can be competitive going forward and not waiting and hoping for things to improve on their own."
Healy said AirTran is still "trying to determine" whether it will layoff employees in other departments. He said it is possible that regular attrition may be enough to avoid layoffs.
AirTran, which alerted employees of the impending layoffs earlier today, made the announcement less than a week after revealing it planned to seek an average 10 percent pay cut across its nearly 9,000-member workforce. Healy said the pay cuts are expected to save AirTran a little under $30 million.

Alberta reigns as jobs king

Employment at all-time high, leads country
Gina Teel, Calgary HeraldPublished: Saturday, July 12, 2008
Alberta's employment rate hit an all-time high in June, reaping the highest rate in Canada, as the province's legendary red-hot streak in job growth continued full steam ahead.
The numbers, in Statistics Canada's latest labour force survey, should put to bed any niggling worries that Alberta's economy may be faltering, said Frank Atkins, associate professor of economics at the University of Calgary.
"Everyone thinks that because the housing market went through a correction that the whole Alberta economy may be heading in the wrong direction, but these employment numbers certainly don't point that way," he said.
June's employment rate of 72.2 per cent, up 0.2 percentage points from May, is the highest Alberta's seen since January 1976, when the data series began, Statistics Canada said Friday.
Total employment in Alberta increased by 10,000 from May to June -- the largest gain since July 2007.
Alberta's unemployment rate, meanwhile, was 3.3 per cent in June, compared with 3.6 per cent in May, and still the lowest in the country.
Nationally, employment was unchanged in June for the second consecutive month.
Statistics Canada said 39,000 full-time positions were lost in June, while the number of part-time jobs rose by 34,200.
The national unemployment rate gained 0.1 percentage points to 6.2 per cent, but is still among the lowest in 30 years, the federal agency said.
Nationwide job creation, however, was below expectations.
Todd Hirsch, senior economist at ATB Financial in Calgary, said nationally, while Canada's labour market had a net drop of 5,000 jobs, economists had expected an increase of 10,000.
Most of the job growth action was in Western Canada, he said, with 18,000 net new jobs in British Columbia, Alberta, Saskatchewan and Manitoba.
Ontario, meanwhile, shed 24,000 jobs in June, one of the largest monthly drops in recent history for that province, Hirsch said.
Ontario's unemployment rate increased 0.3 percentage points to 6.7 per cent.
Alberta also notched the highest participation rate of any province, Hirsch said.
Alberta's participation rate was 74.6 per cent, with Manitoba a distant second at 69.8 per cent.
The participation rate is the percentage of people over the age of 15 who are working or looking for work; whereas the employment rate reflects only the people who work in the labour force.
"It just shows you that people moved to Alberta to work because there are a lot of jobs, so it shouldn't be surprising that our participation rate and employment rate are the highest in the country," Hirsch said.
Statistics Canada said Alberta's job growth in June was led by professional, scientific and technical services -- one of the fastest growing industries in Alberta and Canada.
The industry has largely driven Alberta's employment growth for the past year which, at 3.1 per cent, has been the fastest of all the provinces.
And while part-time employment in June in Alberta is up by 10,000, since June 2007, full-time employment is up 37,000 and part-time is up 23,000, said Danielle Zietsma with Statistics Canada's labour statistics division.

24,000 Ontario jobs lost in June

Firms facing slowdown in sales take cautious approach to new hiring
Jul 12, 2008 04:30 AM
Comments on this story (6) Rita Trichur Business Reporter
Prospects for Canada's once-mighty labour market are looking increasingly dim after it lost 5,000 net jobs in June as full-time positions vanished and the unemployment rate rose to 6.2 per cent, economists said yesterday.
Ontario has the dubious distinction of being the month's "big loser" after shedding 24,000 jobs. That stood in contrast to May, when it led the country in job creation.
With the national labour market now in negative territory, analysts predict the Bank of Canada will leave its key interest rate unchanged at 3 per cent next week.
Economists had forecast the creation of 10,000 positions, leaving the jobless rate at 6.1 per cent. Statistics Canada instead reported a sharp drop in full-time positions as some 39,200 jobs were slashed from payrolls. The creation of 34,200 part-time jobs helped offset those losses.
Full-time job losses have occurred in three of the last four months. In June, employers were increasingly skittish about offering those coveted positions in both the private and public sectors.
"The move away from full-time work in favour of part-time is consistent with a slowing labour market and signals more labour market weakness is likely still ahead of us," said James Marple, an economist with Toronto Dominion Bank.
As well, those jobs being created are "lower quality," said Adrienne Warren, senior economist with the Bank of Nova Scotia. That is because part-time jobs typically have lower wages and fewer benefits.
"Businesses are taking a much more cautious approach to new hiring right now, given they are facing the prospect of slowing sales growth," Warren said.
That trend is expected to continue, particularly in Central Canada.
The net loss of 24,000 jobs raised Ontario's unemployment rate by 0.3 percentage points to 6.7 per cent in June.
In a rare showing, manufacturing gains counterbalanced losses in construction, said Marple. "The services sector in Ontario on the other hand saw significant losses, shedding 31,800 jobs."
Still, employment in the province has grown 1.7 per cent during the past 12 months because of gains in construction and the service sector, Statistics Canada said.
Ontario Progressive Conservative John Tory seized on June's net decline, saying it proves the Liberal government's economic plan is failing the province.
"Statistics Canada says Ontario lost another 45,000 full-time jobs last month – the worst results in the country and Ontario's biggest monthly loss since 1990. That's like the entire city of Cornwall or Timmins disappearing," stated Tory.
Employment is considered a "lagging indicator," meaning earlier economic declines are only now materializing in the data, economists said.
Ontario's gross domestic product declined 0.3 per cent in the first quarter, leaving it teetering on the brink of a recession.
The Bank of Canada, however, must consider the big picture when deciding on interest rates. Soaring commodity and food prices are fuelling inflation, while the U.S. recession is hindering economic growth.
The central bank stunned the market last month when it kept the overnight rate at 3 per cent. Economists had expected a cut.
This time around, however, weak employment data will make it easier for the bank to hold rates steady, economists said.

Sun Microsystems cuts 212 jobs in Broomfield, Louisville

Sun Microsystems on Thursday notified 212 people at its Broomfield and Louisville campuses that they will lose their jobs as part of a previously announced downsizing, according to state and company officials.
In all, Sun said Thursday it notified 1,000 workers across the U.S. and Canada that their jobs would be cut.
Thirteen people — eight in Broomfield and five in Louisville — are expected to lose their jobs between July 21 and Aug. 4, while 199 more workers — 131 in Broomfield and 68 in Louisville — are expected to be laid off between Sept. 8 and 22, according to paperwork Sun filed with the state of Colorado in accordance with the federal Worker Adjustment and Retraining Notification Act.
The WARN Act requires companies to give states notice of significant layoffs.
Sun currently employs 2,593 people in Louisville and Broomfield.
Two months ago, after reporting a loss during the company's third quarter, Sun officials announced plans to cut between 1,500 and 2,500 jobs. The reductions were part of the company's effort to further align its resources, said Dana Lengkeek, a Sun spokeswoman.
Thursday's cuts affect a variety of functions, she said.
The cuts represent about 3.4 percent of Sun's 34,400-person work force. The 212 cuts in Broomfield and Louisville account for just over 8 percent of the local work force.
Additional cuts are expected, Lengkeek said. She declined to say how many more people would be affected.
"Sun has announced the need to reduce overall spending in its fiscal year 2009, including a reduction in headcount," Sun officials wrote in a letter to the Colorado Department of Labor and Employment. "Sun has identified and continues to identify which employees will be impacted."
Sun officials also noted that the company has "preliminary information that additional employees will be terminated sometime between Dec. 23 and Jan. 5, 2009."
The majority of the "terminations" are expected to occur on Sept. 8, according to the letter.
According to the notice sent to the state, only Sun's Santa Clara and Menlo Park, Calif., campuses were harder hit than Broomfield in terms of layoffs, with 213 and 192, respectively.
Broomfield also was the third-hardest hit in September 2007, the last time Colorado and other states received a WARN Act notice from Sun. At that time, Sun eliminated 129 jobs at Broomfield and Louisville.
About 1,500 employees across the United States, Canada, Europe and Asia were affected by that restructuring.

2 area manufacturers will cut hundreds of jobs

By BILL VIRGINP-I REPORTER
Two Washington-based manufacturers said Thursday they are laying off workers.
Intermec Inc., the Everett-based maker of bar code and radio-frequency identification systems for tracking inventory and shipments, said it plans to cut 260 jobs companywide as it moves manufacturing from its Everett headquarters to a Singapore-based contractor and consolidates repair work at other locations.
Of that total, 180 jobs will be gone from Everett, according to the company's filing with the state Employment Security Department.
The layoffs will occur over the next nine to 12 months.
Genie Industries Inc.'s parent, Terex Corp., laid off 120 full-time workers and an undisclosed number of temporary workers in its aerial work platforms segment. Redmond-based Genie, which makes lifts, booms and light towers, makes up the majority of that division, but the company didn't disclose how many of the layoffs were there or at its manufacturing plant in Moses Lake.
Those layoffs occurred this week.
"Our business is a cyclical one," said Genie spokeswoman Melinda Zimmerman-Smith. "We're responding to the industries we serve, particularly construction," which has been hit by rising fuel and raw-material costs.
Intermec plans to transfer final assembly of its products to Venture Corp. Ltd., a Singapore-based contract manufacturer, consolidate two U.S. service depots (including one in Everett) to existing locations in the U.S. and Mexico and transfer onsite field service repair to an outside company.
Dennis Faerber, senior vice president of global supply chain operations, said Venture has been doing product assembly and engineering for Intermec for a decade.
Intermec buys many of the components used in its products in Asia, sends them to Everett for final assembly, then ships them to customers around the world.
That model "is a very long supply chain and, frankly, a very expensive supply chain and getting more expensive as logistics costs continue to increase," Faerber said.
With the decision to end production in Everett and the flow of parts and subassemblies that would also be needed for repairs, Intermec decided it "could no longer sustain a viable service depot operation in Everett," added Mike Wills, senior vice president of global sales and service.
"This is not a reaction to near-term economic conditions, " Wills added. With many of its competitors already producing products in Asia and more headed that direction, "This is a strategic play" for Intermec.
Intermec currently has 690 employees at Everett. What will remain are the corporate offices, engineering, marketing and finance operations.
The company didn't disclose how much the changes will reduce expenses but said it plans to take pretax restructuring charges of $7.5 million to $9 million, spread out over multiple quarters.
Intermec also warned that second-quarter revenue will be $216 million to $218 million, less than its previous estimates of $227 million to $232 million, because of the timing of large projects for certain customers.
Intermec stock fell $4.14, or 20 percent, to close at $16.08 in trading Thursday.
P-I reporter Bill Virgin can be reached at 206-448-8319 or billvirgin@seattlepi.com.

Australia Posts Positive Employment Data

hu, Jul 10 2008, 11:37 GMTby Andrei Pehar
fxKnight.com
29,800 new jobs were created Down Under last month, a number nearly three times the amount analysts had been expecting. 25,600 were lost during the previous month. The overall unemployment rate dropped slightly from 4.3% to 4.2%.The employment news brings some light to an otherwise fairly negative week for the continent, which saw consumer sentiment drop by another 6.7% (it dropped 5.6% the prior month), and home loans drop by 7.9%, nearly double past month's decline of 4.2% (a figure which already includes a revision to the downside). Business confidence came it at -9, compared with -4 the month before.

IBM layoffs hit RTP

IBM has laid off about 30 workers in Research Triangle Park, a company official confirmed Wednesday.
The job cuts were part of a round of 150 cuts IBM (NYSE: IBM) made across the country.
They represent a fraction of the technology company's local work force. IBM is the largest employer in Research Triangle Park, where it has about 11,000 workers. The company has about 120,000 workers in the U.S.
Spokesperson John Buscemi declined to provide details about the laid-off workers.
"IBM continually evaluates its skills and needs and balances them against the needs of our customers," he says. "And so a resource action" - IBM's corporate term for layoffs - "was part of that."
Affected employees will have the chance to look for other jobs within IBM, Buscemi says. Those who don't find jobs will be offered severance packages.

CMS to cut 331 jobs, try to avoid layoffs

The superintendent says the changes will include larger classes and less library staff.
By Ann Doss Helms
ahelms@charlotteobserver.com
Charlotte-Mecklenburg Schools will eliminate 331 jobs, including 66 elementary school teachers and more than 100 people who work in school libraries, Superintendent Peter Gorman announced Wednesday.
The cuts won't necessarily mean layoffs. CMS has a work force topping 19,700 people, and Gorman said he hopes anyone whose job is eliminated can move into a new one.
The biggest wallop will be felt in schools, where 210 jobs are being cut using new CMS formulas assigning teachers, assistant principals, library staff, counselors, psychologists and social workers based on enrollment and poverty levels. Some students in low-poverty elementary schools will see bigger classes in August, and many schools will lose people who help run the media centers.
“These are cuts that will have a real impact on children,” Gorman said.
The remaining jobs are either vacant – CMS froze some hiring this spring anticipating cuts – or existed on paper only. Those include 42 vacant maintenance jobs, about a dozen vacant jobs in central offices and nine jobs Gorman had hoped to add in regional “learning community” offices.
The new plan trims $24million from the $1.2 billion budget plan the school board approved in April, to bring 2008-09 spending in line with the money CMS will get from the state and Mecklenburg County. The spring plan is used to make a pitch for county money. The school board approves a final budget in the fall, after state, county and federal officials tells CMS how much to expect.
Gorman said his budget is likely to keep changing, but he wanted to tell staff and the public what to expect. He said he tried to avoid cutting school staff, but that's where most of the money goes.
Board member Kaye McGarry, who attended Gorman's news conference, said afterward he should have cut more from administration. “To me, we have to be stronger in saying ‘Protect the classroom,'” she said.
The budget is a mix of state, county and federal money. CMS is waiting on variables ranging from federal grants to fall enrollment. If there's money to restore anything, Gorman said, he'll hire the additional 66 teachers to bring down class sizes in grades K-3.
Under Wednesday's plan, high-poverty schools will continue to get one K-3 teacher per 16 students; the ratio for other schools will rise from one per 21 to one per 22.
Board member Trent Merchant, who has a first-grader in a school that could lose teachers, called Gorman's formulas “a responsible method.”
The legislature, which provides about 60 percent of CMS's money, just approved a 2008-09 budget that provides 3percent raises for teachers, instead of the 5 percent CMS had projected in its April plan. It also provides $3.23 a gallon to fill school bus tanks, while CMS is paying $4.19 a gallon, Deputy Superintendent Maurice Green said.
School board member Vilma Leake said she'd like to see CMS and the county provide money to keep teacher raises at 5 percent. Leake, a retired teacher who's running for county commissioner, said she's trying to organize 10,000 educators to go to Raleigh and confront legislators.
Among the jobs Gorman will trim are some from the April plan that were never filled. For instance, CMS had planned to hire nine people to create a second Performance Learning Center, a small high school for students who don't do well in traditional settings. Officials pulled the plug a couple of weeks ago.
Gorman said he doesn't expect to lay off teachers because summer is the heaviest time for turnover, leaving openings for any who have to switch schools.
Media-center assistants, the largest group losing jobs, will be offered positions as teacher assistants, he said.

Australian Leading Employment Indicator Falls In July

Australia’s Department of Employment said Wednesday that its leading indicator of employment fell to a negative 0.060 in July from a revised positive 0.117 in June.
The indicator has now fallen for six consecutive months, confirming a slowing in the pace of employment growth below its long-term trend of 2.5% a year, the department said.
The indicator measures four weighted time-series variables: ANZ newspaper job ads, Dun & Bradstreet employment expectations, the Westpac-Melbourne Institute leading index of economic activity survey, and the Westpac-Melbourne Institute consumer sentiment survey.
The Australian Bureau of Statistics will issue June employment data Thursday. Economists expect a 7,500 increase in employment over the month, well below the 15,000 per month needed to keep the unemployment rate steady over time.
Employment contracted by 20,000 in May, spooking financial markets and prompting the Reserve Bank of Australia to warn about tentative signs of a slowdown in job creation.
Source: http://www.djnewswires.com/eu

Is Your Company Still Hiring IT Workers?

Posted by John Soat, Jul 8, 2008 02:54 PM
According to Bureau Of Labor Statistics, IT jobs are a glimmer of light in a darkening employment picture. Good news but surprising, given an anticipated retrenchment in IT spending. Will that bullish employment outlook last?
In a news story by my colleague Chris Murphy, IT hiring was still going strong in the second quarter, despite the weakness in most of the rest of the U.S. job market. According to our calculations of the quarterly BLS data, IT jobs increased more than 2% from the first quarter, to hit 4.1 million employed, an all time high. Compared with the second quarter a year ago, U.S. IT employment is up 10%.
The last time InformationWeek did a survey about the effects of the weakening economy on IT, however, a majority of respondents said they were getting pressure to cut back technology spending, and they broke down their plans this way:
About three-quarters of companies looking to cut their IT spending say they'll scale back new hires; 55% say they'll hold off on infrastructure upgrades, including PCs, servers, and other hardware; and 45% cite new application development and other software projects as probable casualties.
(To see the complete results of our March survey, in chart form, go here.)
Of course, "scale back" doesn't mean eliminate altogether. But it does imply retrenchment, a pulling back to accommodate that fiscal conservatism. That's why it's a surprise to see IT hiring still increasing.
Despite the increase, retrenchment still might be represented in the BLS numbers. An organization called the National Association of Computer Consultant Businesses, which advocates for the IT consulting industry, tracks IT jobs monthly using BLS data. In its most recent report, the NACCB says the U.S. added only 1,700 IT jobs in June, compared with 43,000 in May.

U.S. IT Employment Keeps Rising, Up 10% From Last Year

IT employment is fairing slightly better than other professions.
By Chris Murphy InformationWeek July 8, 2008 12:19 PM
Amid a shaky overall job market, U.S. companies kept adding information technology workers in the second quarter, lifting IT jobs more than 2% from the first quarter to hit 4.1 million employed, according to quarterly data from the Bureau of Labor Statistics. Compared with the second quarter a year ago, U.S. IT employment's up 10%.
U.S. IT employment's at an all-time high, having passed the 4 million job mark for the first time in the first quarter. With layoffs looming in the banking sector, a major employer of IT professionals, IT employment looked poised to falter in the second quarter, yet it held strong. Some tech companies have warned, as Oracle did last week, that sales may be slower in the coming months, again raising questions of whether tech jobs will keep growing. The National Association of Computer Consultant Businesses, which tracks IT jobs monthly using BLS data, says the U.S. added only 1,700 IT jobs in June, compared with 43,000 in May.
U.S. IT unemployment was 2.2% in the second quarter, compared with 2.5% for the management and professional segment overall, which employs 52.7 million people. The quarterly BLS data is based on the averages of its monthly surveys of U.S. households.
Looking at the average of survey data the past four quarters shows similar year-over-year growth to the second quarter alone: 3.96 million IT pros employed, up 10.6% from the average in 2007.
The BLS recognizes eight IT job segments, and InformationWeek analyzes changes in those segments by averaging the past four quarter's surveys, to even out any effects of smaller sample sizes of these groups. IT management jobs continued their growth path, up 16% from a year ago, making up 12% of IT jobs. The IT manager role is on pace to soon pass programmers as the no. 3 largest job category. Programmer jobs fell 4%, to about 528,000 jobs, or 13% of the IT work force. Eight years ago, it was a fourth of the workforce. The most jobs were added in computer scientists and systems analysts (up 13%), software engineers (up 10%), and support specialists (up 10%).

The Job Market: July 2008

It has been almost a year since the world heard the term "sub-prime loan" on the news for the first time and the financial world has been shaken to the core since.

Leading financial institutions have been turned on their head in the wake of the crisis and hundreds of thousands of jobs lost in those firms.

Now we have the impact of the increase in gas prices in the US and the beginning of the labor recession in the US that seems to have begun in May of this year starting.

Until this point, jobs cuts were isolated to manufacturing jobs and Wall Street jobs; manufacturing has been in constant decline in the US for some time; Wall Street was added in the aftermath of the sub-prime mess where firms like Citi, Merill, UBS, really everyone, cleaned some of their house up.

Now with gas prices roaring, job are being cut in larger numbers and across industries. As I chronicle some of them, in The Job Market Blog, the cuts are now across industries and include government workers--one of the largest sectors for job creation in the Bush Presidency (along with healthcare).

It doesn't seem to matter what the person does professionally, jobs are disappearing in large numbers (A long time ago, I learned not to believe the US government statistics on job loss or job creation--one look at June's numbers that show 66000 jobs lost nationally but another set from California showing 100000 lost in that state alone in another survey make me scratch my head in wonderment).

And many of them are jobs held by Baby Boomers--which means middle management jobs are disappearing and, for now, not being replaced so fast.

Yet firms are continuing to recruit for staff, including many of the financial firms that we have been reading about regularly in the press.

What's hot?

Nothing if you are a 55 year old middle level manager. To be clear, I am not suggesting bias here (for once). I am pointing to how organizations in down cycles look for staff level professionals--"doers", rather than people who manage how things are done or how things can be done better.

The exception is in consulting--senior professionals who are willing to travel, who have done consulting at some point in their past, and are willing to accept travel as part of their diet are finding that there are a host of firms competing aggressively for their services.

For firms that are hiring, you have choices at some levels of your hiring and clearly few qualified candidates in others.

I expect the labor slowdown to continue into 2009--after all, the third leg of the economic/political problems will occur with a new President assuming office. No disrespect to Senators Obama or McCain, but business hates change and that is what we have ahead of us--change no matter who is elected.

It will get messier.

Jeff Altman
The Big Game Hunter
Concepts in Staffing
thebiggamehunter@cisny.com

© 2008 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in many disciplines since 1971. He is a retired certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

He is the author of “Get Yourself Hired NOW! The Big Game Hunter’s Guide to Head Hunting Your Next Job and Every Job After That” (in ebook and audio formats) and “Get Your Job Search Organized NOW!” (ebook) Both are available at www.getyourselfhiredNOW.com Register at the site and you will receive free copies of The International Job Board List and a Guide to Resume Writing.

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