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The latest news, trends and information to help you with your recruiting efforts.

Posted November 01, 2012 by

Job Cuts Up From September But Down From a Year Ago

John Challenger of Challenger, Gray & Christmas

John Challenger of Challenger, Gray & Christmas

Planned job cuts by U.S.-based employers surged 41 percent in October to 47,724, as a spate of layoff announcements in the wake of weak quarterly earnings reports helped push downsizing activity to its highest level in five months, according to the report on monthly job cuts released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The October surge follows a relatively mild September, during which employers announced 33,816 job cuts, which was the second lowest monthly total in the last 22 months.  October was the highest job-cut month since May, when 61,887 planned layoffs were announced.  It was up 12 percent from the same month a year ago, when employers announced plans to trim payrolls by 42,759 workers.   (more…)

Posted October 04, 2012 by

Layoffs Down 19% From 2011 and Lowest Since 1997

Downsizing activity remained relatively flat in September as US-based employers announced plans to cut 33,816 jobs from their payrolls during the month.  That was up 4.9 percent from a 20-month low of 32,239 job cuts in August, according to the latest report released Thursday by global outplacement firm Challenger, Gray & Christmas, Inc.

Last month’s total was 71 percent lower than a year ago, when planned job cuts unexpectedly surged to a 29-month high of 115,730.   It was, in fact, the lowest September total since 1997 when only 20,698 were announced.

John Challenger of Challenger, Gray & ChristmasSeptember brings to an end one of the slowest job-cut quarters in over a decade.  Employers announced 102,910 job cuts in the third quarter, down 27 percent from the previous quarter (139,997), and 56 percent lower than the third quarter of 2011 (233,258).  It was the lowest quarterly total since the second quarter of 2000, when planned layoffs numbered 81,568.

Employers have now announced 386,001 planned job cuts in 2012, which is 19 percent fewer than the 479,064 job cuts recorded by this point last year.  One has to go back to 1997 to find fewer job cuts announced through the first nine months of the year.  That year, employers announced 281,496 job cuts through September.

Contributing to the decline in monthly job cut figures is the significant drop-off in the number of layoffs announced by the government sector.  These employers announced just 14,186 job cuts through September, compared to 119,027 by this point in 2011.  (more…)

Posted August 02, 2012 by

45% Fewer Layoffs in July 2012 Than July 2011

John Challenger of Challenger, Gray & ChristmasPlanned layoffs declined for the second consecutive month in July, as employers announced job cuts totaling 36,855, down 2.0 percent from 37,551 in June, according to the latest job cuts report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

Job cuts last month were down 45 percent from a year ago, when employers announced plans to cut 66,414 workers from their payrolls in July. This is just the third time this year employers announced fewer cuts than the same month in 2011.

Overall, employers have announced 319,946 job cuts so far this year. The pace of downsizing is virtually even with a year ago; up just 2.5 percent from the 312,220 planned layoffs announced from January through July. (more…)

Posted January 05, 2012 by

Job Cuts in December Were Lowest Per Month Since June

Planned job cuts announced by U.S. employers declined in December to 41,785, the lowest monthly total since June, according to the latest report on downsizing activity from global outplacement firm Challenger, Gray & Christmas, Inc.

The December total was down 1.6 percent from 42,474 job cuts in November. Last month was up 31 percent from December 2010, when employers announced just 32,004 job cuts, which still stands as the lowest monthly total since 17,241 job cuts were recorded in June 2000.

While 2011 went out like a lamb in terms of downsizing activity, with employers announcing an average of just 42,339 job cuts per month over the final quarter of the year, the year-end job-cut total of 606,082 was 14 percent higher than the 529,973 job cuts announced in 2010. However, the 2010 year-end total was a 13-year low. The 2011 total is still well below the recession peak of 1288,030 annual job cuts reached in 2009. (more…)

Posted April 28, 2008 by

A NOVEL INSIGHT TO OUTSOURCING

Forced vasectomies, salvation from a Beggarmaster and a government that changes the law to legitimize their corruption. These are but a few of the adventures in the intricate novel called “A Fine Balance” by Rohinton Mistry. The story takes place in Mumbai, India around 1975. The main characters undergo such an oppressive struggle to survive it’s almost unbearable to read. But the book is written so well that it’s worth the heartache. Though it’s been thirteen years since the book was published, it supplies an interesting insight to a current controversy: outsourcing. The United States, Europe and Japan outsource favorable work to India and save big bucks. And technology is only improving the ease of outsourcing, degenerating American jobs. Check out the facts on “Business Process Outsourcing in India” on Wikpedia. The numbers are staggering. And I could understand the temptation to fathom the outsourced workers as the enemy. Before you do, read the book, “A Fine Balance” and get a taste of what life was like in the city that has taken our jobs.
My favorite character in the book was Ishvar. He is a tailor whose father was a leather curer. If you are not familiar with the Caste System in India, it is a BIG DEAL to change your occupation. Moving up in life when you are supposed to be lower than dirt is a hard pill to swallow. When Ishvar’s father decides his sons will learn a different trade to have a chance at a better life, his family is ostracized. Life is so mean to them, you really wish they would just win the Lotto and be done with it. The injustices they endure could only be seen as a million dollar lawsuit in the United States. As I read the book, I asked people who have traveled to India if it was indeed like the book’s description. To which, I was sadly confirmed that yes, it is. Not to say this country doesn’t have it’s share of people overcoming great odds to succeed but they are not exactly replacing educated workers in a different country by the hundreds of thousands now, are they?
Business’ loyalty is to profit. A business in a country that thrives on capitalism is faithful to the consumer. Residing in the country that consumes the product is no guarantee that the company will employ the consumer. Short of saying it’s our own fault, we have to look at the real problem. The consumer wants cheap flip-flops and children’s clothing at Walmart, it will be made in China. The consumer wants 24-Hour assistance to set up a home printer, the calls will be answered in India. We all have to make sacrifices. We all have to make a living. It’s not the workers; it’s the consumer.