Has US companies cut 4,91,000 jobs during April 2009?

In a possible sign that the worst may be over for the country's labour market, a new report shows that American private companies slashed as many as 4,91,000 jobs in April, much less than expected.

The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".

Experts were expecting that the decline would be more than 6,00,000.

"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.

According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.

Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.

"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.

Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.

Further, small-size entities, which have less than 50 workers, saw a fall of 1,83,000 in employment.

"The employment declines among medium-and small-size businesses
indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.

The report sponsored by ADP is maintained by Macroeconomic Advisers, LLC and it is a measure of employment derived from an anonymous subset of roughly 5,00,000 US business clients.

In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.

Agencies

Infosys to cut variable pay compenent

Infosys has cut the variable pay for employees, with the cuts being deeper at the higher levels. For senior executives, the variable pay, which constitutes nearly 50 per cent of their total compensation, has been slashed by 58 per cent.

“Some boardroom executives have even taken a 70 per cent to 85 per cent variable pay cut,” said T V Mohandas Pai, head of HR in Infosys. The company's hiring has been steadily declining.

In Q4, it added (net) only 1,772 people, compared to 2,772 in Q3, and 2,586 in Q4 of 2007-08. In the whole of 2008-09, it hired (net) 13,663 people, down from 18,946 in the year before.

The company maintained that it will not seek to trim its payroll by laying off software professionals. There will, however, be no salary hike this year, as the company plans to keep its operational costs under control.

“We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai.

Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.

Times News Network

US private cos layoff 5,22,000 jobs in January

Private sector companies in the US slashed a stunning 5,22,000 jobs in January, in yet another indication of the worsening labour market situation.

The latest ADP (Automatic Data Processing Inc) report showed that non-farm private employment on a seasonally adjusted basis, declined 5,22,000 in January 2009.

The ADP National Employment Report is based on anonymous payroll data and is maintained by Macroeconomic Advisers LLC.

In a statement today, ADP said the report for January estimates "non-farm private employment in the service-providing sector fell by 2,79,000".

While the goods-producing sector shed 2,43,000 jobs, the manufacturing industry saw the loss of 1,60,000 jobs last month.

According to the report, large businesses which are defined as those with 500 or more workers, slashed 92,000 jobs. Further, medium-size and small-size entities reduced their workforce by 2,55,000 and 1,75,000 employees, respectively.

Medium-size companies are those having 50 to 499 people whereas small-size firms are described as those with less than 50 workers.

Agencies