Starbucks announced this week the removal of 12,000 positions, American Airlines of 9,000. American Airlines as a whole will eliminate 30,000 jobs this year. Yesterday, the "Los Angeles Times" announced 250 deletions of posts, including 150 journalists. Wall Street banks continued their purge Bank of America announced 7,500 deletions of posts after the acquisition of Countrywide and we expect the worst in the automotive industry. An economy that idling and the increase in the price of oil will pay a high price to employees. The return of the plans of massive layoffs is the order of the day.
The month of June has again illustrated this trend. According to statistics of the Department of labour, it is an astounding 62 jobs that have been deleted over the period, mainly in construction and industry. The industry has lost 33,000 jobs, 43,000, the 7,500 distribution. Significant, 59.000 jobs have been destroyed in professional services, while the services sector in General has been relatively spared until now and also displays a positive balance of 7,000 jobs in June. In addition, sectors that show an increase on the last month of the second quarter are those of health, education, administration and the mine (including oil extraction activities).
The figures for the month of may have been revised upward (of 49,000 jobs at an astounding 62 destruction). The rate of unemployment, on the other hand, remained stable, at 5.5, last month. "The number of jobs in the private sector fell from 91.000 ...." The decline could reach 100,000 if the auto workers had resumed their position after the American Axle strike. "Given the weakness of sales of cars, can expect new cuts in this sector", said Nigel Gault, Chief Economist for Global Insight. Since December 2007, the United States lost 438.000 non-agricultural employment and the number of unemployed reached 8.5 million out of a total of 154 million active people.
Degradation is not over
So far, a large part of the employers had responded by reducing working hours and not hiring. Services had almost not been affected. But Goldman Sachs experts expect that the unemployment rate can reach 6.9 at the end of 2009. Too low, the economy can no longer create enough jobs. "It is clear that the housing and credit crisis still plays in full." "There is still hundreds of thousands of jobs lost in real estate, finance and construction", said economist from Goldman Sachs Andrew Tilton "New York Times".
In this degradation continues employment, candidates in the presidential election have both claimed yesterday more action. So far, the Bush administration has acted through a tax package to relieve the middle class: $ 86 billion have been distributed so far (on 107 billion) from 105 million homes. "To put the economy on track, must be an economic plan focusing on employment, with tax cuts for families, assistance for those whose homes are entered and lower health care costs," said John McCain. Barack Obama asked "deductions on the cost of energy for families, a fund to help cope with seizures, aid extended to those who do not have employment and assistance to the States most affected by the economic downturn".