Archive for April 5th, 2009

Layoffs Beget Layoffs

We have the highest unemployment in 25 years, and Bloomberg says it’s only going to get worse…

The U.S. may suffer further job losses in the coming months after employers cut payrolls by 633,000 in March and the unemployment rate jumped to a 25-year high of 8.5 percent.

A host of companies — from manufacturers such as Johnson Controls Inc. and Dana Holding Corp. to service providers like International Business Machines Corp. and even the U.S. Postal Service — have announced plans to eliminate jobs in the face of depressed demand from their customers.

“We expect labor-market conditions to remain appalling for many months to come,” Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York, wrote in a client note following yesterday’s report from the Labor Department.

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