Thursday, June 02, 2005

Job reductions soar 42% in May, "too early to worry" about "weak" economy

This is a post from DU that discusses job cuts in May which soared at 42%. Enclosed are the URL's for the DU post and the CNN Money Article.
Bush_Eats_Beef (1000+ posts)
Thu Jun-02-05 10:50 AMOriginal message
Job reductions soar 42% in May, "too early to worry" about "weak" economy
Job reductions soar 42% in MayReport: Computer firms lead the surge, but it's too early to worry about weakness in U.S. economy.

June 2, 2005: 11:02 AM EDT
NEW YORK (CNN/Money) - Planned job cuts announced by employers soared 42 percent in May after hitting a five-year low in April, but it's too early to worry about weakness in the economy, an employment firm said Thursday. Employers announced 82,283 job cuts in May, compared to 57,861 the previous month, according to a monthly report issued by Challenger, Gray & Christmas. May job cuts rose 12 percent from the year-ago period. So far this year, 427,278 job cuts have been announced, 4.6 percent more than the five-month total of 408,392 last year, the report said.

Computer companies -- which reported 17,886 cuts, or about one-fifth of the monthly total -- led the rise in May, while the transportation industry ranked second with 7,339 announced job cuts."If job cuts do not lessen in June, July and August, which historically are the lowest job-cut months of the year, then it might be time to be concerned about the economy's strength," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said. The report also noted that employers appear to be retaining their workers, but appear reluctant to add new one. Job creation, while improving, is still well below the pace of previous recoveries, it said.

"My message to Congress when they come back is this; that our economy is strong, but we need to work together to make sure that we continue to have a prosperous economy, so people can find jobs. I say it's strong because we've added over 3.5 million new jobs over the last two years, and the unemployment rate is 5.2 percent. More Americans are working today than ever before. Homeownership is at an all-time high. Small businesses are flourishing. Families are taking home more of what they earn."- George W. Bush, Press Conference, 05/31/05

"If he is dead, you wastin' money. If he is alive, maybe you be sorry you find him." - Revenge of the Creature (1955) "If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them." - Henry David Thoreau

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