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Planned Job Cuts Increase by 12% In June, Second Sequential Increase

Tyler Durden's picture




 

Forget new job formation. According to the just released Challenger jobs report, job destruction is starting to be an issue again, after the June report disclosed that "the number of planned job cuts announced by U.S.-based employers increased by 4,297 or 11.6 percent to 41,432 in June. The June increase is the second in as many months. Announced layoffs in May were up 2.0 percent to 37,135, after falling to a four-month low of 36,490 in April. The two consecutive months of increased job cuts did little to impact the overall slow pace of downsizing. For the quarter ending on June 30, a total of 115,057 job cuts were announced, down 12 percent from 130,749 in the first quarter and 1.2 percent lower than the second quarter in 2010 (116,494)." The worry is that after troughing in April we are now back to March levels, and just off from 2011 highs reached in February. The states with the biggest YTD layoffs by location are California: 35,114; District of Columbia: 15,771; New Jersey: 13,182; Florida: 13,006 and Texas: 12,165. The largest job cuts in June were not surprisingly in the government sector at 10,176, followed by health care, food, aerospace/defense and entertainment/leisure. Only 7 people were said to be expected to be fired in Real Estate. Overall, an ominous sign ahead of the ADP and the NFP later in the week.

Full report.

 

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Wed, 07/06/2011 - 07:44 | 1428997 hugovanderbubble
hugovanderbubble's picture

The important thing...

 

No real new jobs create in net terms in Private Sector

If Created with lower salaries...

So less power purchase to consumption practices....

 

Thanks Bernanke.

 

Keep the system Levitating...

SRS LONG, REITS are all fraud ponzi schemes.

Wed, 07/06/2011 - 07:45 | 1429005 writingsonthewall
writingsonthewall's picture

We're gonna party like it's 1929!

Wed, 07/06/2011 - 07:47 | 1429011 DeadFred
DeadFred's picture

They're not firing any lawyers, that's got to be a bullish sign right?

Wed, 07/06/2011 - 07:49 | 1429018 Iam Rich
Iam Rich's picture

The lawyers did well at the beginning of the depression....then starved like everybody else.

Wed, 07/06/2011 - 07:48 | 1429012 King_of_simpletons
King_of_simpletons's picture

I don't believe this report. Obama created 2.1 million private sector jobs since 2008. How can this be ? Oh my god. What's to be believed....

Wed, 07/06/2011 - 11:08 | 1429690 Problem Is
Problem Is's picture

And Obama Bin Lyin' saved 2 million more jobs...

Every time his limo passed a pedestrian without running them over...

Another job was "saved"...

Wed, 07/06/2011 - 14:09 | 1430399 sgt_doom
sgt_doom's picture

This is a serious response to King_of_simpletons:

Please recall that arrests of illegal or undocumented workers in the USA, when employed in US companies, processing plants, etc.,  has increased dramatically under the Obama administration.

Everyone arrested has had their newly vacated job declared under "new job creation" -- I kid thee not!

This number has been further leveraged even higher under that "adjustment" fudge factor.

BS neverending....

Wed, 07/06/2011 - 20:00 | 1431297 jerry_theking_lawler
jerry_theking_lawler's picture

you mean BLS, right??

Wed, 07/06/2011 - 07:49 | 1429017 Agent 440
Agent 440's picture

OK, There's this car...OK... and,,,uh,,, there's this, uh,um, ditch...

Wed, 07/06/2011 - 07:54 | 1429032 GeneMarchbanks
GeneMarchbanks's picture

... and the ditch is... uhh... just infront of, a... a... oh yeah a canyon. A f-u-c-k-in c-an-y-o-n. Good night kids!

Wed, 07/06/2011 - 07:58 | 1429041 Silver Dreamer
Silver Dreamer's picture

The car is off the road, through the ditch, and over the cliff already too.

Wed, 07/06/2011 - 07:55 | 1429026 Franken_Stein
Franken_Stein's picture

 

May I dare to quote from the 1980 Bilderberg paper ?

So you know what's in store for you in the future by learning from the past:

 

 

Canadian Working Paper

 

Economic Relations between North America And Europe

 

...

 

p. 92:

 

"2. The monetary system and the future of the dollar

In these same past three years, there have been periods when there was sharp European criticism of American passivity toward the decline in value of the dollar. And in the fall of 1979 it was unquestionably the refusal of the Deutsche Bundesbank to continue supporting the dollar that clinched the case within the American government for the Volcker package. This specific sensitivity remains potentially acute.

And behind it, of course, lie the wider questions of the continued role of the dollar as the dominant reserve currency, and of the operation of an overall system envisaged since 1971 as one of managed floating exchange rates. Many Europeans feel that the U.S. has done too little managing. And if all the major OECD nations have avoided the competitive deprecitiation of their currencies as in the 1930's, they have been concerned to maintain an exchange rate helpful to exports, even if that conflicted with broader objectives of a sound monetary system. There is a built-in conflict here that can too easily become a renewed source of serious friction."

 

...

 

 

Wow !

Exactly the currency wars that we have been witnessing recently already being anticipated in 1980.

The current situation is not so much different from what it was back then..

Remember the early 1980s, the years of high inflation, with Paul Volcker at the helm of the Fed, who then had to raise interest rates to 14 %.

They called it double-digit inflation back then, the meme even made its way into music and films, for example Grandmaster Flash was singing about it in his "The message".

Back in the early 80's the Soviet Union just had invaded Afghanistan, and in Iran the U.S. installed Shah of Persia had been toppled and replaced by Ayatollah Khomeini who flew in by plane from his exile in Paris.

 

Wed, 07/06/2011 - 07:59 | 1429040 plocequ1
plocequ1's picture

Shit, Back then, I was just a kid listening to The police and Rush. Who would of ever thunk?

Wed, 07/06/2011 - 11:12 | 1429709 Problem Is
Problem Is's picture

" Who would of ever thunk?"

You were listening to Rush when you should have been listening to Tom Petty and Van Halen... Are you sure you were thunking back then???

Wed, 07/06/2011 - 08:07 | 1429062 duo
duo's picture

"Broken glass everywhere, people pissing on the stairs you know they just don't care,

Rats in the front room, roaches in the back, junkies in the alley with a baseball bat."

Wed, 07/06/2011 - 09:49 | 1429381 Franken_Stein
Franken_Stein's picture

 

"So don't push me,

'cause I'm close to the edge.

I'm tryin' not to lose my head, ah-haha-haha !"


It's like a jungle sometimes,

it makes me wonder,

how I keep from goin' under."

 

Wed, 07/06/2011 - 07:55 | 1429029 plocequ1
plocequ1's picture

Most jobs listed in my sunday paper are for mostly for security guards. They're always hiring

Wed, 07/06/2011 - 07:59 | 1429042 youngman
youngman's picture

That is a growth industry.....there is going to be a huge need for personal, business, city, state, and nation security.....the mobs will be roving...and it will not be pretty....

Wed, 07/06/2011 - 08:28 | 1429112 equity_momo
equity_momo's picture

Indeed. I think its a great opportunity for a business start up but i know nothing of security. Goto CapeTown or Jo'Burg - that model of living is coming to America.

Wed, 07/06/2011 - 07:54 | 1429030 Steelpulse
Steelpulse's picture

ADP numbers come out tomorrow then?

Wed, 07/06/2011 - 07:57 | 1429036 Quintus
Quintus's picture

8:15am tomorrow.

Wed, 07/06/2011 - 08:05 | 1429054 Steelpulse
Steelpulse's picture

Thanks.

Wed, 07/06/2011 - 07:55 | 1429034 overmedicatedun...
overmedicatedundersexed's picture

jobless recovery aka the economy of pain.

Wed, 07/06/2011 - 07:57 | 1429037 Herbert_guthrie
Herbert_guthrie's picture

QE was supposed to "juice" the economy and ADD jobs.
Now we see an increase in pink slips......

Wait a minute! Was that QE reasoning just a lie?

Hold on! Is QE nothing more than a fancy word for stealing??????

Wed, 07/06/2011 - 08:02 | 1429038 idea_hamster
idea_hamster's picture

I think this shows some overlap with the earlier report that the voluntary separations number has cratered.

http://www.zerohedge.com/article/driver-employment-gains-job-separations...

It's becoming clear to employers that their worst workers will never quit on their own, no matter how bad the workplace environment is made for them (think Milton and his red stapler in the basement) and so the planned layoff numbers are trending up.

Not sayin' it's not bad news -- just sayin'.

Wed, 07/06/2011 - 07:57 | 1429039 FischerBlack
FischerBlack's picture

Gotta love the CNBC headline for the same report:

Pace of US Layoffs Lowest since 2000: Challenger

Wed, 07/06/2011 - 08:02 | 1429050 cosmictrainwreck
cosmictrainwreck's picture

yer shittin' me, right? can you parse their "logic", data or rationalization for me?

Wed, 07/06/2011 - 08:05 | 1429058 GeneMarchbanks
GeneMarchbanks's picture

Polish that turd 'til it sparkles! Get more glitter, Erin!

Wed, 07/06/2011 - 08:09 | 1429066 The Axe
The Axe's picture
Unemployment rate in 2000 was 4% a 31 year low. Today it is 9.9 % so comparing the rate of layoffs is in fact ----bull...I hope the rate of plan layoffs is lower vs a full employment time period..Or we are really screwed...idiots.  CNBC idiots
Wed, 07/06/2011 - 07:59 | 1429045 Robslob
Robslob's picture

I was just reading that...lmao...it is the new generation of:

Headline Wars!

What's a bot to do?

Wed, 07/06/2011 - 08:00 | 1429046 malikai
malikai's picture

Jobless recovery!

Wed, 07/06/2011 - 08:06 | 1429060 bigdumbnugly
bigdumbnugly's picture

the recovery has fallen and it can't get up.

it's just an old gray hag floundering around on the floor.

Wed, 07/06/2011 - 08:40 | 1429139 malikai
malikai's picture

I used to love those commercials when I was a kid. Out of my group of friends growing up, I was the best at mimicking the commercial. I could probably still do it today.

Wed, 07/06/2011 - 08:02 | 1429051 sunnyside
sunnyside's picture

The only large residential jobs our design and engineering firm is still seeing are from gov't employees.  GSA employees, police, retiring beaurocrats, etc haven't slowed down their lake homes or McMansions.  The average private citizen is not builiding.  Also, our commerical work has always been churches and assisted living homes.  Both of these have slowed or dried up completely.  Builders in our region have no backlog and when a project comes in are pushing us to get it out the door so that they have something to do.  Framing and masonry crews are applying at every jobsite.

 

Anecdotally, I saw something this past month that puts a face on some of the long term problems we have.  About two years ago a Lowes hardware store went up in my small town.  A small hardware store (open for 15 years) just closed after trying, but not being able to compete.  I saw the owner last week, now behind the paint counter at this Lowes.  The "Wal-Mart or Lowes good/bad" type debates go back and forth, but long term term, this cannot be good for a healthy prosperous society.  Yea, my paint is a dollar cheaper a gallon and my socks are 1 dollar a pair, but how many small business owners are now working for $9/hr?

Wed, 07/06/2011 - 08:12 | 1429072 duo
duo's picture

In my hometown there's a Lowe and a HD across the road from each other, on the outskirts of a city with 9000 people!  Granted, the county has 30K people as do adjacent counties.  The "growth" it brought was the unemployed from other counties to take the $9/hr jerbs.

Wed, 07/06/2011 - 08:04 | 1429052 Fazzie
Fazzie's picture

 Leave it to CNBS to see a statistical silver lining to economic data pointing to a double dip. I quote the propaganda arm of the US govt directly, their headline reads as of now:

    "Pace of US layoffs lowest since 2000"

 Thats right, ignore an alarming double digit MoM uptick in job destruction right when all the laying off was supposed to have been over and business was hiring because the economic recovery was so strong.

  Instead, desperately find a way to lipstick that pig. Now thats real journalism, captured media style.

Wed, 07/06/2011 - 08:07 | 1429061 Fazzie
Fazzie's picture

 Oops. While I was composing my long winded comment, FischerBlack beat me to the punch with the same observation, expressed muck more succintly!

 

Wed, 07/06/2011 - 08:49 | 1429158 SmoothCoolSmoke
SmoothCoolSmoke's picture

CNBC = bought and paid for Jackazzholes.

Wed, 07/06/2011 - 08:22 | 1429102 the not so migh...
the not so mighty maximiza's picture

FU CNBC!!!!!

Wed, 07/06/2011 - 08:50 | 1429160 SmoothCoolSmoke
SmoothCoolSmoke's picture

+1

Wed, 07/06/2011 - 08:28 | 1429111 cosmictrainwreck
cosmictrainwreck's picture

well, I had no idea CNBS carried that much clout! VXX continues to fade in pre-market....

Wed, 07/06/2011 - 08:32 | 1429121 mayhem_korner
mayhem_korner's picture

So has Mark Zandi graduated to full-blown lemming in his calling of the recovery re-acceleration...

http://finance.yahoo.com/blogs/daily-ticker/worst-over-going-reaccelerate-mark-zandi-says-122344534.html

Hussein and the banksters are going to start eroding LIFO layers of lies to keep the sheeple's gaze fixed on the hypnotic watch...

Wed, 07/06/2011 - 08:43 | 1429144 digalert
digalert's picture

Ready for the punchline? drumroll please...

"Obama want's four more years to work his magic"

Now that's both cruel and funny.

Wed, 07/06/2011 - 08:43 | 1429146 SmoothCoolSmoke
SmoothCoolSmoke's picture

Hey, Gov't job cuts lead the way!  According to Republicans/Teabaggers, isn't that supposed to fix everything?

Wed, 07/06/2011 - 10:15 | 1429492 tarsubil
tarsubil's picture

Whenever the unproductive get fired that's a good thing.

Wed, 07/06/2011 - 08:47 | 1429154 SmoothCoolSmoke
SmoothCoolSmoke's picture

According to CNBC, it's great news on jobs!

"Pace of US Layoffs Lowest since 2000: Challenger."

 

.... Jack-azz-holes.

 

Wed, 07/06/2011 - 09:56 | 1429415 V in PA
V in PA's picture

Cutting a Government job is like taking someone off welfare or unemployment. It's more of a positive than negative.

Wed, 07/06/2011 - 10:14 | 1429486 bill1102inf
bill1102inf's picture

Not really, now they are on unemployment and welfare.

Wed, 07/06/2011 - 10:16 | 1429500 tarsubil
tarsubil's picture

That costs less and most government employees will not be able to live on such a meagre handout. They'll have to get real jobs.

Wed, 07/06/2011 - 10:18 | 1429506 mayhem_korner
mayhem_korner's picture

Yes, the new gubmint "management rotation" training:

3 months on, 99 weeks off...rinse, repeat

:D

Wed, 07/06/2011 - 11:04 | 1429664 Problem Is
Problem Is's picture

"planned job cuts announced by U.S.-based employers increased by 4,297 or 11.6 percent to 41,43..."


"quarter ending on June 30, a total of 115,057 job cuts were announced, down 12 percent from 130,749 in the first quarter and 1.2 percent lower than the second quarter in 2010 (116,494)..."

Not to Worry
I am sure we have 130,749 or so running out of unemployment insurance... making them "marginally attached" instead of "unemployed"...

And a couple 100k backward revisions, and...

Shrink the labor force participation rate, and...

Presto-Change-O...
We've got ourselves 8.9% unemployment...

It's a good thing your teleprompter said we broke the back of that recession, aye Bullshit Barry?

Wed, 07/06/2011 - 12:06 | 1429965 Agent 440
Agent 440's picture

At this point I'm all for 100% unemployment if it means getting rid of the genius economists who got us here.

Wed, 07/06/2011 - 12:30 | 1430064 Byronio
Byronio's picture

Yet US still has millions of LEGAL immigrants each year, not counting all the various other LEGAL routes into the country, e.g. refugees etc.

 

Ed Rubenstein charts employment at Vdare.com he says Hispanic employment has been rising while White employment has been declining, in fact that Whites were the overwhelming majority of those losing jobs during the downturn, so you have Latinos GAINING and the folks who built the country getting lost adrift. Who designed that I wonder?

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