The U.S. economy is showing signs of recovery, but despite that fact, the number of bank failures in the U.S. has continued to increase with 123 entities going out of business so far this year. The authorities shut down three banks - Orion Bank based in Naples, Pacific Coast National Bank in San Clemente and Century Bank F.S.B of Sarasota on November 13, taking the count of failed banks to 123 this year, according to PTI.
The Federal Deposit Insurance (FDIC), which was named the receiver of the failed banks, took over Orion Bank, with about $2.7 billion in assets and $2.1 billion in deposits and Century Bank with $728 million in assets and $631 million in deposits. Pacific Coast National Bank was also shut down. It had $134.4 million in assets and $130.9 million in deposits. In addition, FDIC had entered into a purchase and assumption agreement with Iberia Bank of Lafayette, Louisiana, to assume all of the deposits of Century Bank, FSB.
However, the maximum number of collapses this year took place in July, when 24 banks were closed down, while 20 entities bite the dust last month.
Despite the slowly improving economic situation, soaring unemployment rate have resulted in rising defaults, primarily impacting the small and medium banks.
Agencies
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Monday, November 16, 2009
Thursday, October 1, 2009
Jobless Americans climb to 551,000 in September 2009
The count of Americans seeking unemployment benefits for the first time climbed unexpectedly by 17,000 to 551,000 for the week ended September 26, indicating that labour market remains strained despite easing economic conditions.
The figures come a day after official data showed that the US economy contracted less than expected at 0.7 per cent i the June quarter.
According to the US Labor Department, the number of initial claims for jobless benefits rose 17,000 to 551,000 for the week ended September 26.
In the previous week, the figure stood at 534,000. As per the data, the four-week moving average was 548,000.
However, the count of those receiving unemployment benefits dropped as much as 70,000 to 6,090,000 for the week ended September 19.
"The 4-week moving average was 6,154,500, a decrease of 39,250 from the preceding week's revised average of 6,193,750," the Labor Department said in a statement today.
Yesterday, payroll-processing firm ADP in its National Employment Report said that 254,000 jobs evaporated in the American private sector in September.
However, the report noted that the decrease was the smallest since July 2008.
Agencies
The figures come a day after official data showed that the US economy contracted less than expected at 0.7 per cent i the June quarter.
According to the US Labor Department, the number of initial claims for jobless benefits rose 17,000 to 551,000 for the week ended September 26.
In the previous week, the figure stood at 534,000. As per the data, the four-week moving average was 548,000.
However, the count of those receiving unemployment benefits dropped as much as 70,000 to 6,090,000 for the week ended September 19.
"The 4-week moving average was 6,154,500, a decrease of 39,250 from the preceding week's revised average of 6,193,750," the Labor Department said in a statement today.
Yesterday, payroll-processing firm ADP in its National Employment Report said that 254,000 jobs evaporated in the American private sector in September.
However, the report noted that the decrease was the smallest since July 2008.
Agencies
Jobless rate in Europe touches 10 years high
The unemployment rate in the 16-nation euro zone soared to a ten-year high of 9.6 per cent in August, as the region continued to feel the tremors of the financial turmoil.
Euro zone -- a group of 16 nations that share the common currency euro -- has seen the jobless pace jump to 9.6 per cent in August, little higher than 9.5 per cent in July.
In August last year, the rate stood at 7.6 per cent. Eurostat, the official statistical agency for the European community, today said the unemployment rate is the highest since March 1999.
A staggering 15.165 million people were jobless in the region in August.
In the European Union region, the unemployment rate in August was at 9.1 per cent, the highest since March 2004. The same stood at nine per cent in July.
As many as 21.872 million people were without a job in the 27-nation European Union in August.
"Compared with August 2008, unemployment went up by 5.008 million in the EU and by 3.224 million in the euro area," Eurostat said in the statement.
Among the countries, the unemployment rate was the highest in Spain at 18.9 per cent and Latvia (18.3 per cent), while the lowest was seen in the Netherlands at 3.5 per cent.
Meanwhile, many of the major economies including France and Germany have exited recession and the region as a whole is slowly seeing signs of stabilisation.
Agencies
Euro zone -- a group of 16 nations that share the common currency euro -- has seen the jobless pace jump to 9.6 per cent in August, little higher than 9.5 per cent in July.
In August last year, the rate stood at 7.6 per cent. Eurostat, the official statistical agency for the European community, today said the unemployment rate is the highest since March 1999.
A staggering 15.165 million people were jobless in the region in August.
In the European Union region, the unemployment rate in August was at 9.1 per cent, the highest since March 2004. The same stood at nine per cent in July.
As many as 21.872 million people were without a job in the 27-nation European Union in August.
"Compared with August 2008, unemployment went up by 5.008 million in the EU and by 3.224 million in the euro area," Eurostat said in the statement.
Among the countries, the unemployment rate was the highest in Spain at 18.9 per cent and Latvia (18.3 per cent), while the lowest was seen in the Netherlands at 3.5 per cent.
Meanwhile, many of the major economies including France and Germany have exited recession and the region as a whole is slowly seeing signs of stabilisation.
Agencies
Friday, April 3, 2009
Despite hope of recession easing layoffs rise
American employers are laying off workers at a faster pace despite a few hopeful signs recently that the recession, now the longest
since World War II, could be easing.
The Labor Department on Friday is slated to release a report expected to show that a net total of 654,000 jobs were lost last month. That's more than the population of Baltimore.
If economists are right, it would mark a record four straight months that job losses topped 600,000.
``It's going to be another month of gargantuan jobs losses,'' predicted Stuart Hoffman, chief economist at PNC Financial Services Group. ``Companies were slashing jobs and not filling vacant positions.''
With employers axing payrolls, the US unemployment rate is expected to jump to 8.5 per cent, from 8.1 per cent in February. If that happens, it would mark the highest jobless rate since late 1983, when the country was recovering from a severe recession that drove unemployment past 10 per cent.
As the recession, which started in December 2007, eats into their sales and profits, companies are laying off workers and resorting to other cost-saving measures. Those include holding down hours, and freezing or cutting pay, to survive the storm.
Looking forward, economists expect monthly job losses continuing for most, if not all of, this year.
However, they are hoping that payroll reductions in the current quarter won't be as deep as the roughly 650,000 average monthly job losses in the January-March period. In the best-case scenario, employment losses in the present quarter would be about half that pace, some economists said. That scenario partly assumes the economy won't be shrinking nearly as much in the present quarter.
Federal Reserve Chairman Ben Bernanke said the recession could end later this year, setting the stage for a recovery next year, if the government is successful in bolstering the banking system. Banks have been clobbered by the worst housing, credit and financial crises to hit the country since the 1930s.
Even if the recession ends this year, the economy will remain frail, analysts said. Companies will have little appetite to ramp up hiring until they feel the economy is truly out of the woods and any recovery has staying power.
Given that, many economists predict the unemployment rate will hit 10 per cent at the end of this year. The Fed says unemployment will remain elevated into 2011.
Economists say the job market may not get back to normal _ meaning a 5 per cent unemployment rate, until 2013.
``There's going to quite a long haul before you see the jobless rate head down,'' said Bill Cheney, chief economist at John Hancock Financial Services.
To brace the economy, the Fed has slashed a key bank lending rate to an all-time low and has embarked on a series of radical programs to inject billions of dollars into the financial system.
And the Obama administration had launched a multi-pronged strategy to turn the economy around. Its $787 billion stimulus package includes money that will flow to states for public works projects, help them defray budget cuts, extend unemployment benefits and boost food stamp benefits.
The administration also is counting on programs to prop up financial companies and reduce home foreclosures to help turn the economy around.
On the economic front, some glimmers of hope have emerged recently.
Orders placed with US factories actually rose in February, ending a six straight months of declines, the government reported Thursday. Earlier in the week, there was better-than-expected reports on construction spending and pending home sales. And last week a report showed that consumer spending, an engine of the economy, rose in February for the second month in a row, after a half-year of declines.
Still, skittish employers announced more job layoffs this week. 3M Co., the maker of Scotch tape, Post-It Notes and other products, said it's cutting another 1,200 jobs, or 1.5 per cent of its work force, because of the global economic slump. Fewer than half the jobs will be in the US, but include hundreds in its home state of Minnesota. The 1,200 figure includes cuts made earlier in the first quarter.
Elsewhere, healthcare products distributor Cardinal Health Inc. said it would eliminate 1,300 positions, or about 3 per cent of its work force, and semiconductor equipment maker KLA-Tencor Corp. said it will cut about 600 jobs, or 10 per cent of its employees.
Agencies
since World War II, could be easing.
The Labor Department on Friday is slated to release a report expected to show that a net total of 654,000 jobs were lost last month. That's more than the population of Baltimore.
If economists are right, it would mark a record four straight months that job losses topped 600,000.
``It's going to be another month of gargantuan jobs losses,'' predicted Stuart Hoffman, chief economist at PNC Financial Services Group. ``Companies were slashing jobs and not filling vacant positions.''
With employers axing payrolls, the US unemployment rate is expected to jump to 8.5 per cent, from 8.1 per cent in February. If that happens, it would mark the highest jobless rate since late 1983, when the country was recovering from a severe recession that drove unemployment past 10 per cent.
As the recession, which started in December 2007, eats into their sales and profits, companies are laying off workers and resorting to other cost-saving measures. Those include holding down hours, and freezing or cutting pay, to survive the storm.
Looking forward, economists expect monthly job losses continuing for most, if not all of, this year.
However, they are hoping that payroll reductions in the current quarter won't be as deep as the roughly 650,000 average monthly job losses in the January-March period. In the best-case scenario, employment losses in the present quarter would be about half that pace, some economists said. That scenario partly assumes the economy won't be shrinking nearly as much in the present quarter.
Federal Reserve Chairman Ben Bernanke said the recession could end later this year, setting the stage for a recovery next year, if the government is successful in bolstering the banking system. Banks have been clobbered by the worst housing, credit and financial crises to hit the country since the 1930s.
Even if the recession ends this year, the economy will remain frail, analysts said. Companies will have little appetite to ramp up hiring until they feel the economy is truly out of the woods and any recovery has staying power.
Given that, many economists predict the unemployment rate will hit 10 per cent at the end of this year. The Fed says unemployment will remain elevated into 2011.
Economists say the job market may not get back to normal _ meaning a 5 per cent unemployment rate, until 2013.
``There's going to quite a long haul before you see the jobless rate head down,'' said Bill Cheney, chief economist at John Hancock Financial Services.
To brace the economy, the Fed has slashed a key bank lending rate to an all-time low and has embarked on a series of radical programs to inject billions of dollars into the financial system.
And the Obama administration had launched a multi-pronged strategy to turn the economy around. Its $787 billion stimulus package includes money that will flow to states for public works projects, help them defray budget cuts, extend unemployment benefits and boost food stamp benefits.
The administration also is counting on programs to prop up financial companies and reduce home foreclosures to help turn the economy around.
On the economic front, some glimmers of hope have emerged recently.
Orders placed with US factories actually rose in February, ending a six straight months of declines, the government reported Thursday. Earlier in the week, there was better-than-expected reports on construction spending and pending home sales. And last week a report showed that consumer spending, an engine of the economy, rose in February for the second month in a row, after a half-year of declines.
Still, skittish employers announced more job layoffs this week. 3M Co., the maker of Scotch tape, Post-It Notes and other products, said it's cutting another 1,200 jobs, or 1.5 per cent of its work force, because of the global economic slump. Fewer than half the jobs will be in the US, but include hundreds in its home state of Minnesota. The 1,200 figure includes cuts made earlier in the first quarter.
Elsewhere, healthcare products distributor Cardinal Health Inc. said it would eliminate 1,300 positions, or about 3 per cent of its work force, and semiconductor equipment maker KLA-Tencor Corp. said it will cut about 600 jobs, or 10 per cent of its employees.
Agencies
Friday, March 20, 2009
US axes 651,000 jobs in February; unemployment rate highest in 25 years
US employers axed 651,000 jobs in February, pushing the unemployment rate to its highest in 25 years, as companies buckled under the strain of a recession that is showing no signs of ending, according to a government report.
While that figure was near economists' expectations for a 648,000 drop in non-farm payrolls, January and December job losses were revised sharply higher.
The Labor Department on Friday said the unemployment rate surged to 8.1 percent in February, the highest level since December 1983. That was above market forecasts for a rise to 7.9 from January's 7.6 percent.
January's job cuts were revised to show a steep decline of 655,000, while December's payrolls losses were adjusted to 681,000, the deepest since October 1949. Since the start of the recession in December 2007, the economy has purged 4.4 million jobs, with more than half occurring in the last 4 months.
Job losses in February were broad based, with only government, education and health services adding jobs.
"Since the recession began, the rise in unemployment has been concentrated among people who lost jobs, as opposed to job leavers or people joining the labor force," said Bureau of Labor Statistics Commissioner Keith Hall
The manufacturing sector shed 168,000 jobs in February, after eliminating 257,000 positions the prior month. Construction industries bled 104,000 jobs in February after losing 118,000 in January.
The service-providing industry slashed 375,000 positions after shedding 276,000 in January.
Agencies
While that figure was near economists' expectations for a 648,000 drop in non-farm payrolls, January and December job losses were revised sharply higher.
The Labor Department on Friday said the unemployment rate surged to 8.1 percent in February, the highest level since December 1983. That was above market forecasts for a rise to 7.9 from January's 7.6 percent.
January's job cuts were revised to show a steep decline of 655,000, while December's payrolls losses were adjusted to 681,000, the deepest since October 1949. Since the start of the recession in December 2007, the economy has purged 4.4 million jobs, with more than half occurring in the last 4 months.
Job losses in February were broad based, with only government, education and health services adding jobs.
"Since the recession began, the rise in unemployment has been concentrated among people who lost jobs, as opposed to job leavers or people joining the labor force," said Bureau of Labor Statistics Commissioner Keith Hall
The manufacturing sector shed 168,000 jobs in February, after eliminating 257,000 positions the prior month. Construction industries bled 104,000 jobs in February after losing 118,000 in January.
The service-providing industry slashed 375,000 positions after shedding 276,000 in January.
Agencies
Thursday, February 12, 2009
6,000 workers lose jobs everyday in Mexico
Nearly 6,000 workers lose their jobs daily, which has been happening since November 1, 2008, a report of the Mexico Social Welfare Institute (IMSS) has revealed.
Updated statistics that recently reported an increasing unemployment rate in the last quarter of 2008 of half a million jobs, now pointed out that a higher figure remained in the period of November-January.
The research indicated that only in the big cities 128,122 jobs have been lost last January while the current world economic crisis also had a deep impact on this field, mainly for casual day labourers.
According to the source the company that left more quantity of jobless was CEMEX, considered one of the most important cement producing company of the world, cutting 18,786 jobs.
Agencies
Updated statistics that recently reported an increasing unemployment rate in the last quarter of 2008 of half a million jobs, now pointed out that a higher figure remained in the period of November-January.
The research indicated that only in the big cities 128,122 jobs have been lost last January while the current world economic crisis also had a deep impact on this field, mainly for casual day labourers.
According to the source the company that left more quantity of jobless was CEMEX, considered one of the most important cement producing company of the world, cutting 18,786 jobs.
Agencies
Sunday, February 1, 2009
Are layoffs raising? Reports say 9,000 job vanishing each day
More and more people are becoming unemployed this year, with nearly 9,000 jobs vanishing worldwide on an average each day in January.
As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.
Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.
Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.
Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.
Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.
The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.
Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.
Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).
Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.
Agencies
As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.
Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.
Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.
Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.
Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.
The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.
Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.
Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).
Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.
Agencies
Saturday, January 31, 2009
2009 world unemployment could rise by 40 million, says UN
The global economic downturn could see 40 million more people lose their jobs by the end of the year, taking the unemployment rate to its highest in a decade, the U.N. labor agency said Wednesday.
The number of unemployed in 2009 will largely depend on how effective governments' economic stimulus measures are, the International Labor Organization cautioned.
Worldwide unemployment by the end of the year will range between 210 million and 230 million people, the agency said in its annual Global Employment Trends report.
That is a marked increase on the 179 million who were unemployed at the end of 2007 and the estimated 190 million at the end of 2008, the ILO said.
The worst case scenario assumes growth slows rapidly and that an economic recovery will be delayed into 2010.
This would boost the global unemployment rate to 7.1 per cent, a decade high and well above the 2007 rate of 5.7 per cent and estimates for a 2008 rate of 6 per cent. Over the last ten years, the rate has ranged from 5.7 per cent to a peak of 6.3 in 2003 and 2004.
ILO Director-General Juan Somavia said that although many governments have started to support their economies, ``more decisive and coordinated international action is needed to avert a global social recession.''
``Progress in poverty reduction is unraveling and middle classes worldwide are weakening,'' he said.
The latest predictions are based on an economic growth forecast of 2.2 per cent, published by the International Monetary Fund in November and expected to be adjusted downwards.
``Unemployment will rise with a downward revision, but I believe it will still fall within the range,'' said Lawrence J. Johnson, who heads the ILO's employment trends unit.
The report had originally forecast world unemployment would range between 198 million and 230 million people, but Somavia said the lowest estimate has probably been overtaken by events.
If the worst case scenario materializes, around 200 million more people would become working poor, unable to earn more than $2 per person a day.
In this outlook, the total number of working poor would be 812 million, or 26.8 per cent of the world's work force, the report said, using poverty estimates by the World Bank.
In 2007, some 609.5 million were working poor, 20.6 per cent of the world's work force at the time.
In addition to fiscal and monetary interventions, the world economy also needs creative measures improving the social situation of workers, the report said.
``There is a need to focus measures on vulnerable groups in the labor market, such as youth and women, who are most likely to be pushed into poverty and find themselves trapped there for many years,'' it said.
Governments should give special attention to small and medium companies because they provide the bulk of jobs and are most affected by the financial crisis, the report said.
Agencies
The number of unemployed in 2009 will largely depend on how effective governments' economic stimulus measures are, the International Labor Organization cautioned.
Worldwide unemployment by the end of the year will range between 210 million and 230 million people, the agency said in its annual Global Employment Trends report.
That is a marked increase on the 179 million who were unemployed at the end of 2007 and the estimated 190 million at the end of 2008, the ILO said.
The worst case scenario assumes growth slows rapidly and that an economic recovery will be delayed into 2010.
This would boost the global unemployment rate to 7.1 per cent, a decade high and well above the 2007 rate of 5.7 per cent and estimates for a 2008 rate of 6 per cent. Over the last ten years, the rate has ranged from 5.7 per cent to a peak of 6.3 in 2003 and 2004.
ILO Director-General Juan Somavia said that although many governments have started to support their economies, ``more decisive and coordinated international action is needed to avert a global social recession.''
``Progress in poverty reduction is unraveling and middle classes worldwide are weakening,'' he said.
The latest predictions are based on an economic growth forecast of 2.2 per cent, published by the International Monetary Fund in November and expected to be adjusted downwards.
``Unemployment will rise with a downward revision, but I believe it will still fall within the range,'' said Lawrence J. Johnson, who heads the ILO's employment trends unit.
The report had originally forecast world unemployment would range between 198 million and 230 million people, but Somavia said the lowest estimate has probably been overtaken by events.
If the worst case scenario materializes, around 200 million more people would become working poor, unable to earn more than $2 per person a day.
In this outlook, the total number of working poor would be 812 million, or 26.8 per cent of the world's work force, the report said, using poverty estimates by the World Bank.
In 2007, some 609.5 million were working poor, 20.6 per cent of the world's work force at the time.
In addition to fiscal and monetary interventions, the world economy also needs creative measures improving the social situation of workers, the report said.
``There is a need to focus measures on vulnerable groups in the labor market, such as youth and women, who are most likely to be pushed into poverty and find themselves trapped there for many years,'' it said.
Governments should give special attention to small and medium companies because they provide the bulk of jobs and are most affected by the financial crisis, the report said.
Agencies
Saturday, January 10, 2009
Canada layoffs 34,400 employees in December 2008
The Canadian economy lost 34,400 jobs in December, driving the unemployment rate to 6.6 percent, Statistics Canada said in a fresh sign of recession gripping the nation.
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
Monday, December 22, 2008
World jobless total could rise by 25 million?
The global economic crisis will push up unemployment by up to 25 million by 2010, the OECD head forecast on a 'truly scandalous failure' of regulatory supervision.
"We're heading for a loss of between eight and 10 million jobs in the OECD area... and 20 to 25 million in the world as a whole between now and 2010," Angel Gurria said on France's BFM radio.
The International Labour Organisation earlier forecast that the number of global unemployed could go up by 20 million to reach a record high point of 210 million people by the end of 2009.
The Organisation for Economic Co-operation and Development in Paris brings together 30 countries, including all the world's industrialised economies. The group conducts research and publishes economic forecasts.
Gurria also said that European countries should spend more in stimulus plans to kickstart their economies and suggested that the European Central Bank should lower interest rates because of falling inflation.
The European Union should "go beyond" the fiscal stimulus plans already announced, equivalent to around 1.4 percent of GDP, since "all the other major countries are going beyond that," Gurria said.
He also said that the OECD economies were in recession in the current quarter and would remain so for at least the first two quarters of 2009, with many countries being in recession for most of 2009.
"We predict a recovery at the end of 2009 and weak growth in 2010" he said.
Commenting on the build-up to the crisis, Gurria said there had been "a truly scandalous failure of regulation... and supervision", and poor risk management and corporate governance by companies.
Meanwhile there was fresh movement to stop the meltdown, with a decision by US president-elect Barack Obama to add 500,000 jobs to a 2.5-million-job creation goal to kickstart the world's biggest and ailing economy.
Vice president-elect Joseph Biden also confirmed the Obama team was working on a second economic stimulus package. According to US media, they want to craft a package worth between 675 and 775 billion dollars over two years.
In Europe, the Irish government said it was injecting 5.5 billion euros (7.6 billion dollars) to recapitalise three major banks: Anglo Irish Bank, Bank of Ireland and Allied Irish Banks.
British Prime Minister Gordon Brown promised to create at least 100,000 new jobs through a 10-billion-pound investment in infrastructure, in a newspaper interview.
The Bank of England's deputy governor John Gieve said in an interview with BBC television that the bank under-estimated how serious the credit crunch would be even though it knew that "crazy borrowing" was taking place.
Gieve said the Bank of England had predicted a correction as far back as two years ago but he added: "We didn't think it was going to be anything like as severe as it turned out to be."
Source: Economic Times
"We're heading for a loss of between eight and 10 million jobs in the OECD area... and 20 to 25 million in the world as a whole between now and 2010," Angel Gurria said on France's BFM radio.
The International Labour Organisation earlier forecast that the number of global unemployed could go up by 20 million to reach a record high point of 210 million people by the end of 2009.
The Organisation for Economic Co-operation and Development in Paris brings together 30 countries, including all the world's industrialised economies. The group conducts research and publishes economic forecasts.
Gurria also said that European countries should spend more in stimulus plans to kickstart their economies and suggested that the European Central Bank should lower interest rates because of falling inflation.
The European Union should "go beyond" the fiscal stimulus plans already announced, equivalent to around 1.4 percent of GDP, since "all the other major countries are going beyond that," Gurria said.
He also said that the OECD economies were in recession in the current quarter and would remain so for at least the first two quarters of 2009, with many countries being in recession for most of 2009.
"We predict a recovery at the end of 2009 and weak growth in 2010" he said.
Commenting on the build-up to the crisis, Gurria said there had been "a truly scandalous failure of regulation... and supervision", and poor risk management and corporate governance by companies.
Meanwhile there was fresh movement to stop the meltdown, with a decision by US president-elect Barack Obama to add 500,000 jobs to a 2.5-million-job creation goal to kickstart the world's biggest and ailing economy.
Vice president-elect Joseph Biden also confirmed the Obama team was working on a second economic stimulus package. According to US media, they want to craft a package worth between 675 and 775 billion dollars over two years.
In Europe, the Irish government said it was injecting 5.5 billion euros (7.6 billion dollars) to recapitalise three major banks: Anglo Irish Bank, Bank of Ireland and Allied Irish Banks.
British Prime Minister Gordon Brown promised to create at least 100,000 new jobs through a 10-billion-pound investment in infrastructure, in a newspaper interview.
The Bank of England's deputy governor John Gieve said in an interview with BBC television that the bank under-estimated how serious the credit crunch would be even though it knew that "crazy borrowing" was taking place.
Gieve said the Bank of England had predicted a correction as far back as two years ago but he added: "We didn't think it was going to be anything like as severe as it turned out to be."
Source: Economic Times
Saturday, December 6, 2008
Hong Kong to create 250K jobs through infra projects
Hong Kong's government aims to create 250,000 jobs by launching 10 big infrastructure projects in 2009, its financial secretary said on Saturday, in an effort to slow the growing jobless rate in an economic downturn.
"(The) Hong Kong SAR government will facilitate the launch of 10 major infrastructure projects next year, hoping to bring in 250,000 jobs," John Tsang said in a radio programme, adding he had urged all government departments to propose ways of creating more jobs.
He gave no time frame for the 250,000 job target. Tsang had said earlier this week that he expected Hong Kong's economy to worsen in coming few months. The government recently cut its 2008 GDP growth forecast to 3 to 3.5 percent from 4 to 5 percent.
The unemployment rate rose to 3.5 percent in August-October, from 3.4 percent in July-September quarter. The government said the jobless rate was a lagging indicator and had yet to truly reflect the impact of the global financial crisis.
Economists see it topping 4 percent within a few months as Hong Kong is now in recession and as a trading and financial hub is being hit by the global economic downturn. The jobless rate has come down from a record 8.5 percent in the past five years as the economy has rebounded, but it now looks set to rise sharply in the next year as a global economic downturn hurts Hong Kong businesses.
Source: Agencies
"(The) Hong Kong SAR government will facilitate the launch of 10 major infrastructure projects next year, hoping to bring in 250,000 jobs," John Tsang said in a radio programme, adding he had urged all government departments to propose ways of creating more jobs.
He gave no time frame for the 250,000 job target. Tsang had said earlier this week that he expected Hong Kong's economy to worsen in coming few months. The government recently cut its 2008 GDP growth forecast to 3 to 3.5 percent from 4 to 5 percent.
The unemployment rate rose to 3.5 percent in August-October, from 3.4 percent in July-September quarter. The government said the jobless rate was a lagging indicator and had yet to truly reflect the impact of the global financial crisis.
Economists see it topping 4 percent within a few months as Hong Kong is now in recession and as a trading and financial hub is being hit by the global economic downturn. The jobless rate has come down from a record 8.5 percent in the past five years as the economy has rebounded, but it now looks set to rise sharply in the next year as a global economic downturn hurts Hong Kong businesses.
Source: Agencies
Wednesday, November 26, 2008
Online networks helps job-seekers
Janel Landon, who runs a small PR consultancy in Chicago, has long been aware of the potential of online networks: now in her mid-50s and facing a global recession, she's decided to sign up.
"Given the state of the economy, I recently decided to jump on board," Landon told Reuters. "Professional networking is a 'must do' during unstable economic times."
The economic crisis slamming firms across the globe has sparked a spike in usage of professional networks -- Xing and LinkedIn are key sites -- as people hedge against losing work and laid-off employees seek jobs.
U.S. unemployment hit a new 14-year high in October and according to online job advertising firm Monster, recruitment activity on the Web plunged to its lowest level in nearly three years. Jobless rates are also rising in Europe.
Traffic on the world's top professional Web networks has surged since the financial crisis started to make headlines, with top player, privately held LinkedIn, notching 25 percent more registrations in September than forecast.
"Nobody has ever seen anything like this before," said Kevin Eyres, head of LinkedIn's operations in Europe. "Now we are growing by almost one new user each second."
Membership on LinkedIn has jumped to more than 31 million from 18 million at the start of the year, growing fastest in the financial services, media, education and technology fields, Eyres said. The firm has not disclosed any financial details.
To read on...click on the link below:
http://in.reuters.com/article/technologyNews/idINIndia-36700120081126?pageNumber=1&virtualBrandChannel=0
"Given the state of the economy, I recently decided to jump on board," Landon told Reuters. "Professional networking is a 'must do' during unstable economic times."
The economic crisis slamming firms across the globe has sparked a spike in usage of professional networks -- Xing and LinkedIn are key sites -- as people hedge against losing work and laid-off employees seek jobs.
U.S. unemployment hit a new 14-year high in October and according to online job advertising firm Monster, recruitment activity on the Web plunged to its lowest level in nearly three years. Jobless rates are also rising in Europe.
Traffic on the world's top professional Web networks has surged since the financial crisis started to make headlines, with top player, privately held LinkedIn, notching 25 percent more registrations in September than forecast.
"Nobody has ever seen anything like this before," said Kevin Eyres, head of LinkedIn's operations in Europe. "Now we are growing by almost one new user each second."
Membership on LinkedIn has jumped to more than 31 million from 18 million at the start of the year, growing fastest in the financial services, media, education and technology fields, Eyres said. The firm has not disclosed any financial details.
To read on...click on the link below:
http://in.reuters.com/article/technologyNews/idINIndia-36700120081126?pageNumber=1&virtualBrandChannel=0
Saturday, November 22, 2008
Obama offers massive job-creation plan
President-elect Barack Obama on Saturday offered an outline of his economic recovery plan and jobs were the top priority.
American workers will rebuild the nation's roads and bridges, modernize its schools and create more sources of alternative energy, creating 2.5 million jobs by 2011, Obama said in the weekly Democratic address, posted on his Web site.
"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."
Details of the plan are still being worked out by his economic team, Obama said, but he hopes to implement the plan shortly after taking office January 20.
He referred to figures out this week showing that new home purchases in October were the lowest in 50 years, and that 540,000 new unemployment claims had been filed -- the highest in 18 years.
"We must do more to put people back to work and get our economy moving again," he said. More than a million jobs have been lost this year, he said, and "if we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."
The plan will be aimed at jump-starting job creation, Obama said, and laying the foundation for a stronger economy.
To read on...click on the link below
http://www.cnn.com/2008/POLITICS/11/22/obama.economy/
American workers will rebuild the nation's roads and bridges, modernize its schools and create more sources of alternative energy, creating 2.5 million jobs by 2011, Obama said in the weekly Democratic address, posted on his Web site.
"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."
Details of the plan are still being worked out by his economic team, Obama said, but he hopes to implement the plan shortly after taking office January 20.
He referred to figures out this week showing that new home purchases in October were the lowest in 50 years, and that 540,000 new unemployment claims had been filed -- the highest in 18 years.
"We must do more to put people back to work and get our economy moving again," he said. More than a million jobs have been lost this year, he said, and "if we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."
The plan will be aimed at jump-starting job creation, Obama said, and laying the foundation for a stronger economy.
To read on...click on the link below
http://www.cnn.com/2008/POLITICS/11/22/obama.economy/
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