Job Cuts Surge 59% In July, Highest Since March 2010 As Hiring Intentions Plunge

Tyler Durden's picture

Those looking for an optimistic early look of this Friday's NFP (nobody cares about the ADP any longer) should probably avoid the Challenger lay off data just released. As Bloomberg summarizes, U.S. planned firings up 59% Y/y in July to 66,414, led by pharma, retail; largest number in 16 months. The number includes Merck’s plan to cut ~13k jobs. This 3rd consecutive increase; “seems to provide additional evidence” recovery has stalled, according to CEO John A. Challenger. New Jersey (where MRK is based) led states, with 13,330 cuts, followed by Michigan. Employers also announced plans to hire 10,706 after prior month’s 15,498: this is just barely better than the lowest number this year printed in May when just 10,248 businesses announced intention to hire, and well off the 72,581 highs in February. Bottom line: subzero NFP print coming?

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Bobbyrib's picture

First. Obama's fault.

Cash_is_Trash's picture

No, it's the funny money.

Bobbyrib's picture

You sure a severe lack of demand doesn't have anything to do with it? It's all the FRN's fault? It has nothing to do with the "death of the American consumer"?



KennyG09's picture

Increased monetary "stimulus" = higher commodity prices = higher commodity prices passed along to cosumers (who don't get the new money first remember) = less demand. Artficially low interest rates (cheap FRN's) = boom = inevitable bust = brings demand to where it should be before the excessive credit creation (assuming the end result of our bust is an economy based on real production).  So yes, it is the FRN's fault.


Bobbyrib's picture

Yeah, but if they did nothing to stimulate the economy, it would be just as bad. We haven't reached the real bottom yet. Business owners were waiting for the Fed to fix the problem, now that they know the Fed can't, it's time to cut more.

mayhem_korner's picture

FRNs are an instrument.  It's the misuse of the instrument that is to blame.  It's the "guns don't kill people, people kill people" axiom.

mayhem_korner's picture

At some point, it becomes irrelevant whose fault it is.  What's important is pressing for corrective action (if there is a hope of correcting the situation) or, alternatively, figuring how to survive the collapse.

oobrien's picture

Yes, but look on the bright side!

Food stamps for everybody!

Don't you motherfuckers like the government cheese?

Id fight Gandhi's picture

Now for all the smug bastards to come on and say corporate profits are what matters and they're doing great. Rally on to 1500 this year.

Wall St does not equal main st

Fantasy Planet's picture

Can we eat the unemployed?

mayhem_korner's picture

With fava beans and a good Chianti.

snowball777's picture

Nice marbling on those out for Californians: full of drugs.

RobD's picture

The word at my company is that we will be axing 300(about 10% of the workforce) from the payrolls sometime soon. It was supposed to happen a couple of weeks ago but something/someone has it on hold. Everyone is sitting around wondering when it's going to happen. I figure I have a 50% chance of surviving the cut. Things about to get real lol.

Bobbyrib's picture

That sucks. I hope you miss the cut and also have savings in case you don't.

RobD's picture

Fortunatly I recently inherited a sizable chunk of FRNs from my grandmother so we are in pretty good shape but prospects of finding another job at my current wage is pretty much nill.

Bobbyrib's picture

Well that's fortunate. I wish you the best of luck.

snowball777's picture

I'm betting that does wonders for productivity. /sarc

RobD's picture

double post, sorry

mayhem_korner's picture

BHO, Benny and the (ink)Jets, et al are collectively a stuck pig.

Even with the manipulation, the econ data is going to keep sliding downhill from the recent ugly prints.  Their primal instincts to print and stimulate will be unquenchable.  Thus, the 'unwaste-able' crisis will enable the complex to ignore the back end of the debt ceiling deal.

But the ensuing inflation is going to accelerate the decline, just as it did in Q2.  (BTW, did you see corn - the other yellow commodity - yesterday?).

Leg 2 of the death spiral is on.


I'm all right Jack keep your hands off of my stack.

Archimedes's picture

This NFP wont be negative (I predict Birth / Death model will stick save it and we will get a reading of 36K). But next months number will be negative.



Larry Darrell's picture

My call is for a much "better than expected" ADP number today.  This will give us a good pop/relief rally/dead cat bounce and sucker in some stupid momo money.

Then tomorrow (after the big boys put their shorts on today/overnight) the horrible NFP number will come out and obliterate the dumb momo money (pump and dump) while simultaneously green lighting Benocide to announce the QE3 "salvation" in a week and a half.

EvlTheCat's picture

Hopium is getting punched in the groin this week.

Max Hunter's picture

subzero NFP print coming?

No.. they will increase the Birth/Death model numbers..

overmedicatedundersexed's picture

off shoring jobs over 30 yrs has worked so well for joe six pack

so well in fact he can no longer support the world economy

Obuma is the prefect president for a well fare state perfect.

youngman's picture

It used to be they offshored the jobs because of a better labor they offshore the jobs because that is where the consumers are and the business regulation enviroment is much better...less rules, regulations, lawyers, taxes, costs...sorry Joe six pack...your unions started it..your politicians finished it

Pay Day Today's picture

Actually, a few thousand major shareholders, investors and Boards of Directors chose to decimate the US in order to increase earnings and bonuses for themselves, irrespective of the damage that caused to US towns and cities.

As an aside, German industry has figured out that corporations and unions need to work together side by side for long term prosperity. Something which could not happen in the mypoic US quarter to quarter reporting system.

Central Bankster's picture

Economic laws 101: capital flows to where it is treated best.

The risk of US regulation/politics is higher than the reward for new capital to form for many types of US business (especially manufacturing).  You can argue until you're blue in the face about how unfair that may be, but reality speaks for itself. 

gwar5's picture



Smells like QE3.

youngman's picture

Losing jobs....I can see now why S&P and Moody´s kept the AAA rating....less people working who are paying taxes that can be used to pay the governments bills......wait...that doesn´t sound right????????  WTF?????

Pay Day Today's picture

Corporates have figured out that firing Americans creates more profits for their major shareholders. They've also figured out that cutting gubmunt, laying off gubmunt workers and reducing taxes creates more profits for their major shareholders.

Minor sideaffect: private sector jobs are lost, public sector jobs are lost --> US middle class is lost. Sad.

Ricky Bobby's picture

So are you defending the Status Quo?

Central Bankster's picture

Calling a spade, a spade, does not imply acceptance of his/her authoritarian marxism OR the "status quo" of socialistic corporatism.  Supporting either is immoral IMO.

Bobbyrib's picture

So you are a humble philosopher...who believes unions destroyed the middle class' prosperity. Just so I can get this straight, you do not support the Republicans, right?

BlackholeDivestment's picture

Mene Mene Tekel Upharsin Chairsatan's BTFD Cup of Fornication is overflowing with the blood sweat and tears of the unemployed masses ...the price paid for the Wheat is risen. 

overmedicatedundersexed's picture

pay day, you sound intelligent..NWO ever hear of it, elite do not exist in Germany?? deep capture is not about fishing.

Bitch Tits's picture

Big business, with tons of dough in the bank, cuts staff to become "more efficient" or rather, to increase profits.

The American middle class - arguably the world's biggest consumer class - is out of a job, so can't spend anymore.

Who will buy the services/products big business sells in order to profit? The 1% of the population with all the money?

Isn't this simply a race to the bottom for the entire human race?

Why are we doing this again?


Bobbyrib's picture

"Why are we doing this again?"


So that we're not socialist.

G-R-U-N-T's picture

"“seems to provide additional evidence” recovery has stalled"

"Bloomberg summarizes"....Boy what an intelligent observation. Good lord!

The main stream media continues to be a perpetual embarrassment to anyone with an IQ in triple digits.


White.Star.Line's picture

I now understand what the term DEPRESSION means.

It's not an economic phase, but the emotion felt by the masses when usury and theft leaves their country in ruins.

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