NEW YORK, May 5 (Reuters) - The number of planned layoffs at U.S. firms fell more than 40 percent in April to the lowest level in nearly four years, suggesting employers are more confident about economic conditions, a report on Wednesday showed. Bonds Employers announced 38,326 planned job cuts last month, the lowest since July 2006 and down from 67,611 planned job cuts in March, according to the report from global outplacement consultancy Challenger, Gray & Christmas, Inc. The sharp decline in job cut announcements comes days ahead of the much-anticipated monthly U.S. payrolls report, which is forecast to show non-farm payrolls rose for a second month. The report is due Friday. "It is certainly a promising trend that suggests most employers are increasingly confident about conditions going forward and slowing the pace of job cutting," John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. The April job-cut figure was also down 71 percent from year-ago planned layoffs of 132,590, the report said. While overall job cuts are on the decline, the government and non-profit sector continue to downsize, the report said. (Reporting by Caroline Valetkevitch; Editing by Leslie Adler) http://www.reuters.com/article/idUSNLL4GE61M20100505?type=marketsNews
Good news, no question. But interesting spin, none the less. That phrase "more confident" makes it sound like they are confident that the economy is on the mend. One could just as well written:
The issue is not layoffs. Of course layoffs decline; just like when you pour water out of a jug. The issue is new hires, new job formation; that is the indicator of growth and recovery. The aggregate job headline number blurrs that distinction and the focus on the layoffs is just looking in the wrong direction.
The hiring of census workers, bucket-shop proprietary traders and telephone directory delivery people will save the economy. :eek:
For two and half years, companies cut their staff to a skeleton crew. There is little more to cut when it has cut to the bones. If they are truly confident, they will be hiring, not just laid-off fewer workers. Employments numbers may look good due government hiring mostly part-time very temporary Census workers. Even if you work only a few hours a week, US counts you are as "employed".
How hard will they push the census numbers as a positive I wonder. I know biden is claiming complete victory lol. The have 600k hired. The job ends in 2 months.....um.. ok. Market believes this and rockets, or will brain cells prevail and market looks to something more real.
So you think the US has to re-establish its industrial base back from China into homeland ? I agree. Like every other country using China and Asia as "outsourcing entities"...