Employers cut 533K jobs in Nov., most in 34 years

[JeremyD]

Employers cut 533K jobs in Nov., most in 34 years
Employers ax 533,000 jobs in Nov., most in 34 years; unemployment rate rises to 6.7 percent

WASHINGTON (AP) -- Skittish employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, dramatic proof the country is careening deeper into recession.
A pedestrian talks on his cell phone while walking past an AT&T store Thursday, Dec. 4, 2008, in Chicago. Pressured by the economic turmoil and the mounting loss of traditional phone customers, AT&T Inc. is cutting 12,000 jobs, about 4 percent of its work force. (AP Photo/M. Spencer Green)

A pedestrian talks on his cell phone while walking past an AT&T store Thursday, Dec. 4, 2008, in Chicago. Pressured by the economic turmoil and the mounting loss of traditional phone customers, AT&T Inc. is cutting 12,000 jobs, about 4 percent of its work force. (AP Photo/M. Spencer Green)

The new figures, released by the Labor Department Friday, showed the crucial employment market deteriorating at an alarmingly rapid clip, and handed Americans some more grim news right before the holidays.

As companies throttled back hiring, the unemployment rate bolted from 6.5 percent in October to 6.7 percent last month, a 15-year high.

Job losses were widespread, hitting factories, construction companies, financial firms, retailers, leisure and hospitality, and others industries. The few places where gains were logged included the government, education and health services.

The loss of 533,000 payroll jobs was much deeper than the 320,000 job cuts economists were forecasting. The rise in the unemployment rate, however, wasn't as steep as the 6.8 percent rate they were expecting. Taken together, though, the employment picture was dismal.

The job reductions were the most since a whopping 602,000 positions were slashed in December 1974, when the country was in a severe recession.

Job losses in September and October also turned out to be much worse. Employers cut 403,000 jobs in September, versus 284,000 previously estimated. Another 320,000 were chopped in October, compared with an initial estimate of 240,000.

Employers are slashing costs to the bone as they try to cope with sagging appetites from customers in the U.S. and in other countries, which are struggling with their own economic troubles.

The carnage -- including the worst financial crisis since the 1930s -- is hitting a wide range of companies.

In recent days, household names like AT&T Inc., DuPont, JPMorgan Chase & Co., as well as jet engine maker Pratt & Whitney, a subsidiary of United Technologies Corp., and mining company Freeport-McMoRan Copper & Gold Inc. announced layoffs.

Fighting for their survival, the chiefs of Chrysler LLC, General Motors Corp. and Ford Motor Co. will return Friday to Capitol Hill to again ask lawmakers for as much as $34 billion in emergency aid.

[KFC911]

Unfortunately, it's worse than that . I'm still "technically employed" (collecting a severance), so folks like myself aren't even included in the statistics yet.

[Porsche-O-Phile]

It also does not include the "underemployed" - people who are let go and manage to find work, but at a fraction of their former salary and benefits...

[trader220]

Employment is a lagging indicator, it was also pretty well known where the number was going to come in. In many ways this can be a good sign that the economy is bottoming. We’ll have to wait and see, I suspect we won’t get up ticks in those lagging numbers till next summer.

As far as those people “not included” it really does not matter so long as the kind of data is the same each month. As long as they keep the criteria for the statistics the same the numbers just need to be compared to each other.
In 20 years plus as a trader this is the worst economy I have seen because it’s a global issue. Wait till we see Fed Funds near 0.

[Porsche-O-Phile]

You seriously think this is the bottom? You're kidding, right?

Just wait until the big-3 automakers go under and the 4Q retail numbers come in.

This will bottom middle to end of next year. At the earliest. I hate to say that, but I just don't see how it can "bottom" any sooner.

[the]

The fundamentals of the economy are strong!

[dd74]

I've heard a prediction of 2 to 3 million more jobs may be lost before 2010.

Is a depression looming?

[MRM]

It's even worse than the two worses that are above. Unemployment doesn't count people who are structurally unemployed - people who have been unemployed long enough that they are unable to find work and are no longer actively looking. How many workers in their late 40s, mid 50s, or early 60s do you think have been laid off and are able to find another job? Semi-skilled factory employees when the plant shuts down? Those are among the structurally unemployed.

My wife works for a Fortune 100 company. Her VP just gave everyone a pep talk yesterday. His good news was that their division didn't plan more layoffs until the end of the first quarter of 2009. We celebrated the announcement of 120 days' more continued employment.

Their economists don't think the economy will bottom out until summer 2009 and we won't see a real rebound until Spring 2010.

We will actually see a decrease in the unemployment rate as the economy bottoms, that reflects people dropping out of the employment market and becoming structurally unemployed. Then, as the economy picks up and people think they can get work and start looking for it, the unemployment rate will increase for a while.

This is a brutal economy. I am just old enough to have some memories of the 1970s-1980s recession. This is going to be at least as bad as then. Save up. It could last a while.

[trader220]

Originally Posted by Porsche-O-Phile

You seriously think this is the bottom? You're kidding, right?

Just wait until the big-3 automakers go under and the 4Q retail numbers come in.

This will bottom middle to end of next year. At the earliest. I hate to say that, but I just don't see how it can "bottom" any sooner.

No I am nowhere near calling a bottom I am just giving a historical viewof todays numbers. The big three wont/cant go under too much at stake for the global economy.

[Porsche-O-Phile]

I hope you're right about that...

It is interesting that even with all this dire news, the DJIA is still bouncing off of "bottoms" of around 7500-7800. Maybe that's a good sign that people are STARTING to want to establish a bottom - at least in stocks. If so, it's the start of the very first toehold to keep this thing from skidding further. That'd be encouraging. Just my $0.02. I'm mostly just thinking out loud - not an investor by training or anything, certainly not a finance guy.

[ruf-porsche]

Boy I'm glad I got laid off in September so I'm not bunch in with this current crop of LOSERS.

[trader220]

The 7700 area was the post 9/11 lows and it provides some reasonable technical support.