Layoffs Are Back: This Time, Public Sector Will Bear the Brunt

Layoffs Are Back: This Time, Public Sector Will Bear the Brunt The massive layoffs that followed the financial crisis were both a cause and a symptom of the Great Recession, crippling consumer spending and spreading pessimism. By October 2009, during a month when the U.S. economy lost 190,000 jobs, the unemployment rate hit 10.2%. Job creation began to revive late last year, but in May, the government said the U.S. added only 58,000 jobs, and layoffs may be on the rise again.

Layoffs among state and local government workers are the most obvious source of new unemployment. Large cuts have started in regions as diverse as Jefferson County, Ala., Detroit, and Pennsylvania. These downsizings have affected police, teachers, and administrative personnel. In Detroit, the number of public employee layoffs could rise into the hundreds.

And government job cuts may have only just started. Budgets in large states including California and New York are still not balanced, and state deficits are running in the billions of dollars. Austerity plans being proposed in Washington will probably cost jobs among federal government employees as well.

What might be of more concern to economists is that layoffs have begun to reappear in the private sector, and that trend may grow with the economic slowdown. Walt Disney (DIS) recently downsized workers. So did Boeing (BA). Lockheed Martin (LMT) this week announced a plan to cut 1,200 people this year.

A recent Gallup poll showed job worries among the top concerns in the U.S. "All major subgroups of Americans thus far in 2011 have named either 'the economy' or unemployment as the nation's top problem," Gallup reported. The NFIB Research Foundation, an arm of the National Federation of Independent Business that tracks small business trends, reported recently that many firms with modest numbers of workers plan cuts this year.

Layoffs are not near the fever pitch that they were three years ago, and they will almost certainly not reach that level again anytime soon. But, it appears that high commodities and fuel prices, along with lower manufacturing and modest retail activity, have caused a new spike in job cuts. If the economy slows in the second half and austerity is Washington's solution to the federal deficit, joblessness will get worse.

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cbasilovecchio

7-08-2009 @ 4:07PM
bestsolutionsfl said...
There are presently 8 to 12 million home owners in trouble,defaulting,defaulted or soon to be defaulting.
The worlds "braintrusts" have stated that recovery MUST
come to the housing market and housing prices Must be stabalized.The Fed Chairman stated,when asked how
much money would be lost?,answered,we will only know that after the housing market is stabilized.
SO FIX THE HOUSING MARKET !
ALL 8 to 12 million homes can be stabilized,and can become a 100% asset based AAA note.At NO
cost to the taxpayer.Rather at a profit for the taxpayer.
Just by using legislation already in place with a modification.
THEY SOLVED THE PROBLEM with the "Housing and Economic Recovery Act of 2008"
It simply has to be implimented....not as a guarantee for profit making bank,but rather Fereral Reserve Banks
making the loans with low interest rates...AFFORDABLE that is..
MAKE ALL CITIZENS ELLIGIBLE (NOT JUST 62+)
and MAKE 100% of the ASSET AS THE GUARANTEED LOAN!(NOT % of age)
The Fereral Reserve Bank will be the lender !
The worlds "braintrusts" have stated that recovery MUST
come to the housing market and housing prices Must be stabalized.The Sect. of Treas. (then Paulson) stated when asked how
much money would be lost?,answered we will only know that after the housing market is stabilized.
So FIX THE HOUSING MARKET !
The " NEW" "Housing and Economic Recovery Act of 2008" would create over 4 million jobs in construction and real estate,as well as pay off the NATIONAL DEBT.Let the taxpayers make the profit ! The interest returned could pay off the national debt.
JUST DO IT !
Who would like to challange a plan that:
...makes all homeowners current
and all gladly paying the mortgage
...get the lender 100% of Fair Market Value.
...NO more foreclosures
..No cost to the taxpayers with a bonus of "profit"
PROVE IT WRONG OR EMBRACE IT

bestsolutions at aol

June 20 2011 at 7:44 PM Report abuse rate up rate down Reply
savemycountry911

The powers that be want this to become a third world country. The New World Order is about redistributing the wealth globally.

June 18 2011 at 10:39 PM Report abuse rate up rate down Reply
lr27048

ALL


Municipal layoffs / furloughs have been going on in the open since the mess NYCs Mayor Beame created in the mid 1970s This is nothing new. It's just been brought into a brighter light due to the economy and media technology.


The biggest issue is elected officials believe they have the right to refuse and or manipulate outside funding designated for public service or a specific target program. Investigations usually reveille, it’s because there's no political gain or financial benefit for themselves. I find it interesting that these sleaze balls have the power to refuse transfer of someone else’s government grant or payroll money because it doesn't benefit their own wallet or political future.


I apologize but it's necessary to change the subject.


Our current form of candidate selection for elected public officials is corrupt in that it targets affluent people who tend to not identify with problems facing the masses. Money, personal advancement and positively identifying with others in their own economic class motivates their decisions. It's sort of draconian. A few people with pointed hats who don't care either way take bribes and tributes while everyone else tries to find a livable economic level.


A possible cure:


1- Everyone campaigning is required to show all their assets and explain why they personally want to be an elected official. Not to include municipal adjustments or political ideas. Then answer questions regarding their life’s experience with problems facing the masses. They must also publically agree to immediate, full scrutiny by the Federal Bureau of Investigation. Money to campaign should not be an issue. However, honesty is a must for access to our money. Deception is criminal and cause to recover that money.


2- A political fund open to public campaigning programming. Then accessible to the people we choose. The media must be without political opinionated reporting and open their doors to equal airtime. The candidates must answer questions called in by non political civil or community leaders. (not lawyers) Let the public decide who the candidates would be with a TV and internet pole once a week. Anyone who has watched a political talk show knows the foolish personal issues that sway voters. Hearing it all would paint a much clearer picture. The blinders would come off.


This program would captivate American television more than the food channels. History, Discovery and Science will have to find another day or time )


This idea and information is free from the writer in the interest of our country, The United States of America. If the idea is put in play, let no one take credit, make claim, profit or benefit from this idea other than the people of the United States of America.


God Bless America

June 18 2011 at 7:22 PM Report abuse rate up rate down Reply
bp233

"In Toledo, the President noted that our economy has improved significantly in just the last two years," the White House said in a statement. "And that he'll keep up the fight until our economy and the working families affected by it have fully recovered."

June 18 2011 at 5:05 PM Report abuse +1 rate up rate down Reply
1 reply to bp233's comment
savemycountry911

What a joke.

June 18 2011 at 10:37 PM Report abuse rate up rate down Reply
randyw6735

Andrew Jackson ,1832
In discussing the Bank Renewal bill with a delegation of bankers in 1832, Jackson said, “Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”
180 years and they are still going strong...

June 17 2011 at 8:07 PM Report abuse +1 rate up rate down Reply
Welcome Vic!

I don't know what most of these statements have to do with layoffs. Remember, we were talking about layoffs. Some of the Tea Party guys have the attention span of a rock. Probably explains why Palin and Bachmann can't answer six grade history questions. Something that might help the job market for the manufactureing sector. A brakeing story on CNN about how up to 40 percent of replacement parts for repairing military hardware and machinery supplied by defence contractors are Chinese bootlegs. And we're not just talking firing pins for rifles, we're talking guidence systems for missle launchers. We sent several US reps to China to investigate and the Chinese wouldn't even give them visas to enter the country. The good news is that several members of congress said all US military equipment must be made in the US so the corporations might be forced to open some of those factories back up. The bad news is China probably has the plans for US missle launchers and God knows what else. Now that's corporate greed. The way the Pentagon works these corporations don't really have to bid jobs. Most of the time they get what ever they ask for the job and if they feel they're not making enough they can go back and demand more money. These are companies that were given enough money to make the parts in the US and still make huge profets and they still outsourced to the Chinese. God help us if we're depending on the Chinese for arms and they get mad at us while we've got two wars going on and if we got into a serious world conflict where we needed to mass produce war machines, what factories would we build them in and with what trained manufactureing work force? We'll have to outsource our tanks and artillery.

June 16 2011 at 9:12 PM Report abuse -1 rate up rate down Reply
1 reply to Welcome Vic!'s comment
democracks0

OBAMASAFAILURE

June 17 2011 at 3:13 PM Report abuse +1 rate up rate down Reply
1 reply to democracks0's comment
democracks0

LIBERALSHAVENOATTENTIONSPAN

June 17 2011 at 3:14 PM Report abuse +1 rate up rate down
Iselin007

Weiner may be the big show now but the economy has to get center stage this country is in deep trouble.

June 16 2011 at 8:21 PM Report abuse +2 rate up rate down Reply
Iselin007

This unemployed mass of people is pushing small business out of business . Now the states are laying off an those people are going to abandon their states an go where their money lasts the longest. The more people out of work the more the states going to have to cut until nobody has a job. Business was tough before this down turn now it's going to get worse. Health care is hiring some people but it can't be much there isn't any new money coming in so they will start letting those new people go.

June 16 2011 at 8:19 PM Report abuse +2 rate up rate down Reply
Iselin007

You call no jobs a stimulus. You got to have unemployment checks or jobs for these people or there is going to be social unrest. These fancy manipulations of the labor data does not feed, cloth, or house people.

June 16 2011 at 8:11 PM Report abuse +3 rate up rate down Reply
peapers

When your labor produces neither product nor service, you can't expect a sustainable return.

Things are going to get interesting in this country.

June 16 2011 at 8:08 PM Report abuse +1 rate up rate down Reply