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Job Cuts Soar To Highest Since September 2011 After Mass Army Terminations, Highest YTD Layoffs Since 2009
While we await for the BLS to report another seasonally adjusted Initial Claims report which will be near multi-decade lows, a far more disturbing report was released moments ago by outplacement consultancy Challenger Gray, which has done a far better job of compiling true layoff data, and which reported that in July there was a whopping 105,696, up 136% from the 44,842 job cuts in June, and the highest in nearly four years, or since September 2011, which the last time there were more than more than 100,000 layoffs.
Worse, the July surge brings the year-to-date job cut total to 393,368, which is 34 percent higher than the 292,921 cuts announced in the first seven months of 2014. This represents the highest seven-month total since 2009, when 978,048 job cuts were announced amid the worst recession since the Great Depression.
Finally, this was the worst July for layoffs in over a decade.
And while we expect energy-sector terminations to take center stage in the coming months following the resumed plunge in energy prices, the July surge in layoffs came from an unexpected source: the US Army.
According to Challenger, more than half of the July job cuts were the result of massive troop and civilian workforce reductions announced by the United States Army. The cutbacks will eliminate 57,000 from government payrolls over the next two years.
“When the military makes cuts, they tend to be deep. In fact, the last time we saw more than 100,000 job cuts in September of 2011, it was 50,000 cuts by the US Army that dominated the total. With wars in Afghanistan and Iraq winding down and pressure to cut government spending, the military has been vulnerable to reductions,” said Challenger.
Indeed, some of the biggest job cuts announced in recent years have come from the military and other government agencies. In addition to the 50,000 cuts announced by the US Army in 2011, the United States Air Force announced plans in 2005 to reduce its headcount by 40,000. Between 2002 and 2010, the United States Post Office announced three separate job cuts that affected a total of 90,000 workers.
In the meantime, drone operators will have to find more socially acceptable ways to express their deadly rage: “The transition from the military to the civilian workforce is always challenging, but the economy is in a much better position to absorb this influx of job seekers now, compared to two or three years ago. This does not mean it will be easy for these service men and women, most of whom undoubtedly thought the military would offer career-long job security,” noted Challenger.
“The most difficult part of the transition may be translating one’s military experience into terms that are meaningful to civilian employers. These men and women have skills and experience that are in demand, but they just don’t know how to describe them in a way that non-military recruiters understand. Luckily, there are a growing number of programs and services that help with this and there has been a concerted effort among the nation’s employers to hire former military,” he added.
Well, there is a simple way to "fix" this problem: start more wars, which considering the current situation in Syria, is about to materialize.
The bigger problem is what happens to all those energy sector jobs which were spared in the last moment after oil launched its dead cat bounce earlier this year and which has been fully faded at this moment. In July only 8,878 oil-related jobs were cut, which is a far cry from the 21K monthly peak early in the year. Expect those same numbers to be promptly surpassed.
Bonus table: Challenger's reasons for the soaring layoffs. We are not quite sure what the difference between restructuring and cost-cutting is but there probably is one.
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Bonus army 2.0
Who needs the Army when the government can outsource to mercenary companies and drone operators?
#demanddestruction is causing the largest banks to shrink and become unprofitable rapidly causing tremendous loss to society.
Young people who have just started their careers (in the last few years or shall begin their career in the next few years) are mostly unable to find suitable jobs nor adequate internal training and more so are unable to secure higher incomes nor ample career growth opportunities in any sector at a time when inflation is soaring worldwide.
As the world economic situation continues to deteriorate, three major banks have announced, just in the last 50 days, being Standard Chartered, HSBC and Barclays that they will cut 84,000 jobs in total globally!!!
Some parts of these banks will be sold to other banks, however, overall job cuts will still be of a significant size.
http://www.moneycontrol.com/…/standard-chartered-says-it-ha…
http://www.reuters.com/…/us-hsbc-strategy-idUSKBN0OO2KK2015…
http://www.westerngazette.co.uk/…/story-27447967…/story.html
Here are all the high paid job cuts in the oil/energy sector in one spot since Jan 2015:
FACTBOX-U.S. energy companies slash jobs as oil prices weakenThousands of jobs have been cut in Australia as well.
Australian job cuts mount"causing the largest banks to shrink and become unprofitable rapidly causing tremendous loss to society."
-tremendous loss to society, hmmm, seems when they are doing well there is a tremendous loss to society too - no?
The thing with banks is that they are like a lifeblood of a society. However, you cannot live without them nor can you live with them (second part is valid only in G-7 nations not elsewhere because bankers get glorified on Bloomberg, CNBC etc as if they are demi-Gods)
The only way to run a bank is like they do in Russia, India and China etc. All bankers are paid civil servant like salaries and are tightly monitored for money laundering, fraud etc. If this was the case in US and EU, we would still be fine.
Instead US/EU allowed them to compete and get big...bigger..biggest, the policy makers failed to identify ANY risks including the famed maestro, SEC was busy watching porn and they let the bankers make merry and get rich while the depositors/taxpayers were on the hoook for all the speculation possible that they did!
We could not have reached the stage we are at today in US/EU and the world, had the bankers not been allowed to become billionaires by cheating, scamming, lying and robbing everyone else!
And today, these largest employment organisations in the world are failing, for no fault of the young people looking for work who have just graduated, while there is no companies large enough to absorb the kind of employment that the largest banks have been providing (due to their speculation fuleed growth) over the last 3 decades!
But But, the Labor market is still strong according to this piece (of shit)
http://finance.yahoo.com/news/u-jobless-claims-rise-marginally-123359748...
Double damnit
start more wars, which considering the current situation in Syria, is about to materialize.
You are forgetting the war with Iran that may start soon:
Obama speech on Iran: Collapse of nuclear deal will mean war
By Barry Grey6 August 2015
Defending the nuclear accord reached last month with Tehran, President Barack Obama said Wednesday that congressional blockage of the deal would rapidly lead to war against Iran.
In a chilling passage of the speech delivered at American University in Washington, DC, Obama declared: “Congressional rejection of this deal leaves any US administration that is absolutely committed to preventing Iran from getting a nuclear weapon with one option, another war in the Middle East. I say this not to be provocative, I am stating a fact…
“Does anyone really doubt that the same voices now raised against this deal will be demanding that whoever is president bomb those nuclear facilities?... So let's not mince words. The choice we face is ultimately between diplomacy or some form of war. Maybe not tomorrow, maybe not three months from now, but soon.”
http://www.wsws.org/en/articles/2015/08/06/iran-a06.html
We terminated some folks
Deleted
'Productively inconvenienced'
Whew! We're lucky then that the jobless rate keeps dropping given facts like these.
See, there's a silver lining to every cloud....
As Barry says, it's "Awesome!"
If Moody's recent estimate for the American oil & gas sector pans out, it would translate into a range of 120,000 to 180,000 job cuts this year, in an industry that at the beginning of the year had barely over 500,000 jobs. At the upper end of the range, it would represent the elimination of 36% of the oil & gas jobs in the United States.
A jobs massacre, in essence.
We're looking at huge GDP wage losses in the O&G sector:
http://www.payscale.com/research/US/Industry=Oil_%26_Gas/Salary
No telling what the damage will be due to the ripple effect both upstream and downstream.
Yes, but who needs oil and gas anyway?
Can I interest you in a financial "product"...?
++
Always wondered about the perverted use of that word - 'products', when it comes to all things Finance. I thought a 'product' was something tangible that was manufactured and you could hold in your hand or point to as a result of engineering, development, production and labor.
Why is Listeria on the list twice? Must be some bad shit.
Based on this, the unemployment rate might just go negative before interest rates.
LOL!!! Well, so much for that keyboard.
Keep in mind all the initiatives to "hire vets". Anyone who has looked for a job recently has seen the 4 questions relating to miltary service on the application. And all over the TV and radio are ads to hire vets. This squeeze just got tighter.
Unemployed ex-military. Hmmm.
I don't think as many vets get hired as the hype would imply. Sure, if you've got training in electronics or logistics or imagery or some other technical field there's probably a private sector job for you. If you're experience is kicking in doors and shooting bad guys, I seriously doubt you have good job prospects. And that's most of them.
Police forces won't touch them any more. They're too afraid they're going to have a PTSD episode and start gunning people down.
https://careers.homedepot.com/military-commitment/
None of these jobs are full time.
Welcome to the New Employment Order.
Just as well, being in a Home Depot for more than an hour makes me crazy, never mind 5 /8 hour shifts.
Dunno...
What with the latest July kill numbers, looks like the 'domestic army' is doing a man's job all by themselves...
There's always the re-branded Blackwater private military contracting.
https://academi.hua.hrsmart.com/hr/ats/JobSearch/viewAll
The US gov is moving the jobs to Siria, remeber that ISIS needs the jobs.
numbers, numbers
According to article,
"105,696 cuts in July ...over half ... Army"
(which apparently have not yet happened)
because
"Army will eliminate 57,000 from government payrolls over the next two years."
Also, how many of all of these "jobs" (allegedly that will be lost or will be gained)
will be part-time?
Army cuts? So most of those are going on welfare rolls immediately. That might be an improvement since most of the Army makes less than $30k a year and the government owns them.
What will many "warriors" do?
The big shots will become politicians and lobbyists.
Others:
"private" mercenaries, police, DHS, NSA, guards, CIA,
various preferential hiring by government and the arms industry,
... and
of course, some will use their training and experience
in less officially approved criminal gangs, mobs, and pursuits.
Some will join the PTSD homeless.
You got a problem with Veterans who have PTSD?
SSI disability runs out of money this year.
http://www.nolo.com/legal-encyclopedia/how-can-i-document-my-ptsd-order-...
http://www.marketwatch.com/story/social-security-disability-fund-will-ru...
It's not a good outlook.
Nothing personal,
but statistically,
many of the homeless are found to be Vets suffering from PTSD.
You got a problem with Veterans who have PTSD?
Might as well be proud of a statistic that no other Country could accomplish for it's military!
That label is made in the U.S.A. and will more than likely attempt to start WWIII with it!!
How's that for a "morale booster" shot!!!
This must mean that the long awaited recovory is just about to start lmfao
So about that GDP
http://www.oftwominds.com/blogaug15/GDP-wages8-15.html
Rate Hike
Rate Hike
Rate Hike
ROFLMAO.
What harm could there be in firing all the people who's expertise is in killing.
Better hurry up and raise those rates Janet...
LOL!!
Not sure what the narrative is here. We're supposed to weep over the loss of government jobs? On ZH? Those accounted for 57k of the jump, which is all of it.
You all are just having a go.
As long as Yahoo Finance and CNBC*nt tells me the economy is fine then I am not worried.
Good thing its nearly Ginseng season, big money there! Plus, grade A NW Ohio Muskrats should be bringing at least $5 each this winter!...Or work a crab boat out of Dutch for Opelios! You can really knock down stinky money!
Or, try out for 'Naked and Afraid'...'cause thats where you will be sooner or later whether you like it or not!
Just trying to make lemonade here...
At the same time the administration and government allows a massive numbers of illegals to cross to compete for the few jobs that are here. This is yet another example of a dying country and the insanity that prevails.
http://www.breitbart.com/big-government/2015/08/05/obama-providing-extra...
When I was in the Army everyone who was getting discharged was encouraged to go to the People's Republic of Massachusetts where unemployment paid the most $$$ in the nation.
23 years later, I wonder if it's still the highest in the nation.
Yes it still is .. double the bubba states and 100-150 more than states with electricity. You see "socialism" can work side by side with capitalism if you do things correctly.
You do know that the military is the most socialist thing in US? Sadly most of the money dont go to the actual soldiers, it goes to some billionaires pocket for making tanks nobody wants. Of course these factories are in some backward state (usually those super red ones) which is sucking on FED titty more than anybody else, but they are too busy to realize that since they are crying about abortions, gays or some other shit that pastor said Jesus didnt like.
So nice try sir but Massachusetts is doing just fine.
Why is it then that Massholes feel the need to go out and spread the Good Word to the world.
Personally I rather hide my roots, from embarrassment.
This represents the highest seven-month total since 2009, when 978,048 job cuts were announced amid the worst recession since the Great Depression.
WTF - just call it the Great Wreckovery since the word "Depression" is not used in Newspeak.
The article states that Army will cut 57K over two years. Is this figure being counted in aggregate, or is it annualized at 28.5K in the job cut number?? I didn't see anything on this in the article..
That is just General staff and Cadre.
With all of these cuts who is going to train the next generation of Al Qaeda/ISIS/ISIL?
Oh that's right... We still have plenty of "nukes"!
Futures Soar!!!
Listeria there twice.
Back in 2009 there were many who said that there would be a jobless recovery, which is pure theoretical manure. As we see the it does not exist.
--------
http://spectator.org/articles/40473/jobless-recovery-and-its-structures
"When the military makes cuts, they tend to be deep"
This is supposed to be bad news?
We will make a MAN out of you, AFTER you get out and have to pay rent, buy food, etc etc.
Vets with PTSD
PTSD=having to pay rent instead of barracks/ Buying food instead of FREE chow hall.
Also no First Sergeant to keep track of you. Have to depend on yourself.
This post is a good public and private sector example relating to the quote below from yesterday. And these layoffs are during the good times when the economy is allegedly recovering and the market is propped up to new highs.
"This type of information can easily be obtained from and applied to all sectors public or private."
So far the financial crises that arise rotate around the world one at a time. EU, Japan, China, US etc. and then back around again. When different countries and regions start having duals to keep up the "all is well" facade that should be when everyone really finds out it is not one big happy global family. We already see clear signs of this financially and more. It will become more apparent very soon. And as a result increasingly dangerous in many ways.
And as I've pointed out before those at the top that believe they are on the winning team will find out the hard way they've been sold out just like everyone else. I'm confident there are some that must know this. And so the visionaries in this group that have or will be able to overcome any myopia will make the right choice to help change the current planned financial course and outcome.
I have a great example of a CEO with a plan. If I describe it in detail I'm positive most of you would laugh that both they and Board actually believed it would succeed and they would all become wealthier as a result. And shortly after moving forward with it the company failed as a direct result of the plan. The CEO, the Board, investors, and employees lost everything. That is where the global economy is heading on the current course. And will continue without the right group of visionaries working together soon to change it.
http://www.zerohedge.com/news/2015-08-05/mickey-mouse-market-pops-n-drop...
It is categorically unpossible for the true value of American labor to decline. Even though 99% of the American economy's output is pure capital-destroying garbage, the real value of the labor that made said garbage cannot fall!
Nevermind the fact that the single variable which controls the value of labor - the affordability of the total energy which the firm must gain in order for a worker to peform his/her job at a competitive level of productivity - has begun its violent contraction with no end in sight.
What is the quantifiable difference between a modern trucker and his historical counterparts? Skill? Diet? Education? IQ? Unionization? LOL. Nope, it's the exponentially greater amount of joules, both present and embedded (but they said technological innovation was free?!), acquired at exponentially lower cost, and nothing else.
As affordability of energy shrinks, the amount of energy both the firm and the employee can gain from (profits derived from) the job shrink too, until the job is uneconomical at prevailing wages - indeed within the lesser order of magnitude thereof.
Minimum wage controls - and any similar attempts to prop up compensation in a declining EROEI/falling net-energy scenario - are thus nothing but monumentally stupid, doomed Sisyphean endeavors to counter the rising price of labor relative to its rapidly declining value (thanks to said labor's relentless destruction of the very capital that sustained its existence), by shifting (the enormous) cost from private firm to clueless taxpayer.
Standard of living equals ability to gain joules. When labor does nothing but disperse formerly concentrated joules, labor cannibalizes its own ability to gain joules. This is a specific instance of the general process - industrialization via fossil fuels cannibalized itself in a mere 2 centuries. They were able to literally paper over the problem, until the mid 2000s, by substituting debt creation for a rising/stable EROEI, as the cost of the energy multiplier to productivity (and thus to income as well) began, in lock-step with falling EROEI, to revert to its historical norm. Now the debt financing mechanism in exhausted - the world is completely saturated in unpayable debts - and we are decades further down the net-energy cliff, the only capital that could retire the debt was destroyed via that very same debt. You could not make this shit up.
Energy deflation means your labor is worth less in energetic terms, the only terms that, contra the economic the cargo cult, truly matter at all. In the immortal words of Willy Wonka, "You get NOTHING! You LOSE!" Better learn how to photosynthesize.