‘America’s Workers Being Clobbered by a Relentless Wave of Layoffs Unlikely to Ease Anytime Soon’
March 6th, 2009Via: AP:
The nation’s unemployment rate bolted to 8.1 percent in February, the highest since late 1983, as cost-cutting employers slashed 651,000 jobs amid a deepening recession.
Both figures were worse than analysts expected and the Labor Department’s report shows America’s workers being clobbered by a relentless wave of layoffs unlikely to ease anytime soon.
The net loss of 651,000 jobs in February came after even deeper payroll reductions in the prior two months, according to revised figures released Friday. The economy lost 681,000 jobs in December and another 655,000 in January.
Employers are shrinking their work forces at alarming clip and are turning to other ways to slash costs — including trimming workers’ hours, freezing wages or cutting pay — because the recession has eaten into their sales and profits. Customers at home and abroad are cutting back as other countries cope with their own economic problems.
Since the recession began in December 2007, the economy has lost an astounding 4.4 million jobs, more than half of which occurred in the past four months.
With employers showing no appetite to hire, the unemployment jumped to 8.1 percent from 7.6 percent in January. That was the highest since December 1983, when the jobless rate was 8.3 percent.
All told, the number of unemployed people climbed to 12.5 million. In addition, the number of people forced to work part time for “economic reasons” rose by a sharp 787,000 to 8.6 million. That’s people who would like to work full time but whose hours were cut back or were unable to find full-time work.
Meanwhile, the average work week in February stayed at 33.3 hours, matching the record low set in December.
Job losses were widespread in February.
Construction companies eliminated 104,000 jobs. Factories axed 168,000. Retailers cut nearly 40,000. Professional and business services got rid of 180,000, with 78,000 jobs lost at temporary-help agencies. Financial companies reduced payrolls by 44,000. Leisure and hospitality firms chopped 33,000 positions.
The few areas spared: education and health services, as well as government, which boosted employment last month.
Disappearing jobs and evaporating wealth from tanking home values, 401(k)s and other investments have forced consumers to retrench, driving companies to lay off workers. It’s a vicious cycle in which all the economy’s negative problems feed on each other, worsening the downward spiral.
Government boosted employment?
How much of that was the prison industry?