Job mkt still grim; 27 people lose job per hour

Last Updated: Sunday, September 20, 2009 - 12:11

New York: Despite the US economy showing indications of recovery, the global job market remains gloomy, with companies laying off at least 27 employees every hour to cut costs.

With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.
Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.

The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.

Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.

Last week, US Federal Reserve Chairman Ben Bernanke said the recession is "very likely over," while America`s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.

Bernanke, however, said that recovery would be slow and it would take time to create jobs.
September`s job cut wave was led by Pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.

While in terms of numbers, diversified technology leader Danaher came next with 3,300 job cuts followed by agricultural company Monsanto, which would reduce its headcount by eight percent of its total workforce or about 1,800 people.

Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.

Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.

Other companies which announced job cuts include---Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz`s frozen food arm fires 65 workers in Idaho.

In order to improve its profitability by rationalising underperforming operations, Valero Energy expects that these decisions would reduce headcount at the Delaware City refinery by at least 150 employees and 100 contract workers.

Deere & Company had said that 367 manufacturing employees in Illinois would be placed on indefinite layoff later this month due to reduced market demand for the factory`s products.

Bureau Report



First Published: Sunday, September 20, 2009 - 12:11

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