Mass Layoffs by U.S. Manufacturers Surge in January

Financial Advisory
February 24, 2010

• A d v e r t i s e m e n t

By definition, a mass layoff in the United States is those job cuts that involve 50 or more workers from the same company. Those types of events increased by 35 in January 2010 to 1,761, according to data released.

This is odd in that it has been asserted by government officials that we’re on the edge of new jobs being created in the U.S. economy. That doesn’t seem likely in the light of the real numbers and not just wishful thinking by politicians.

I believe the reason for the discrepancy is that companies were replenishing supplies, as I’ve mentioned before here, and those needs have probably been met in general, so as expected, the manufacturing jobs to produce them are no longer needed. At least that would be part of the reason for increase in mass layoffs.

The fact that there was an increase in mass layoffs shows there is a decline in demand for products; it’s as simple as that. So that means in a number of industries people and companies are tightening up again.

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This article was posted: Wednesday, February 24, 2010 at 1:00 pm

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