Mass Layoffs by U.S. Manufacturers Surge in January
Tuesday, February 23rd, 2010
By definition, a mass layoff in the United States is those job cuts that involve 50 or more workers from the same company. Those types of events increased by 35 in January 2010 to 1,761, according to data released.
This is odd in that it has been asserted by government officials that we're on the edge of new jobs being created in the U.S. economy. That doesn't seem likely in the light of the real numbers and not just wishful thinking by politicians.
I believe the reason for the discrepancy is that companies were replenishing supplies, as I've mentioned before here, and those needs have probably been met in general, so as expected, the manufacturing jobs to produce them are no longer needed. At least that would be part of the reason for increase in mass layoffs.
The fact that there was an increase in mass layoffs shows there is a decline in demand for products; it's as simple as that. So that means in a number of industries people and companies are tightening up again.
My view and the data so far seem to confirm it, is there is nothing in the numbers that confirm we're on the verge of jobs being created in the United States any time soon.
In the manufacturing sector, there were 486 mass layoffs in January, with the consequences of 62,556 workers filing claims for unemployment.
I think one reason officials believed there was going to be an increase in jobs creation was because mass layoffs had been receding since August, giving the illusion that things had turned around. But, again, it's the replenishment which was the major factor in the mix, not a real and sustainable change in the economy.
Since the latter part of 2007, jobs in the United States have been lost to the tune of 8.4 million.
Over the last 26 months, the Labor Department says mass layoffs have been at a huge 53,739 during that period of time to January, with 5,425,101 workers losing their jobs as a result.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: labor department , layoffs , mass layoffs , us economy , us manufacturing
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