Yes, the unemployment rate jumped a tad to 9.6 percent, but seasonal norms for layoffs are in play in the fourth quarter, reminds a report on job trends. Technology is still faring better than most industries.
After
eight months of steady job growth in 2010 and a gradual lowering of the
unemployment rate, November was the worst month for job cuts for the entire
year. But as one outplacement firm that tracks layoffs and hiring closely
reminds us, the last quarter of the year is the time when job cuts historically
arrive.
The
two largest segments of job loss as tracked by Chicago-based Challenger, Gray
& Christmas was the U.S. government and
non-profit organizations. Job cuts for technology professionals totaled about
2,812 last month in aerospace and defense, telecommunications, and computer
segments. Health care, including the pharmaceutical segment, lost over 6,000
jobs last month.
"Government
and non-profit job cuts are down 16 percent from a year ago, but that is
probably little consolation to employees in the sector, which is still
struggling despite signs of recovery in other areas of the economy," said
John A. Challenger, CEO of Challenger, Gray &
Christmas, in a Dec. 1 statement. "Unfortunately, 2011 may not offer much
respite for workers in the sector as many newly elected members of Congress are
pushing for significant federal spending cuts. Job cuts that have been
concentrated at the state and local level could expand to include federal
workers in the new year."
Job
cuts between January and November of this year were under 500,000. Compare that
to 2009 when there were 1.2 million cuts over the same period, and you notice a
significant overall decline, explained Challenger, Gray & Christmas in its layoff
report. Many economic analysts had predicted November job cuts to continue to
diminish after solid October numbers, but as Challenger reminds us, layoffs are
the norm in the fourth quarter of almost any year.
"The
November increase in job cuts is not indicative of a broader trend," said
Challenger in the same statement. "Historically, job cuts tend to increase
in the final months of the year. This is the period when many companies make budget
and payroll decisions for the coming year."
Another
bright spot Challenger pointed out included hiring announcements of 26,012 last
month, mostly in retail.
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