Planned layoffs in U.S. near 5-year high
06.11.2008 17:02
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- Source: cbc.ca
On the day after U.S. voters made history by electing Barack Obama as the country's first black president, the dire economic situation his administration will face was reinforced. A U.S. outplacement firm said Wednesday that planned layoffs at companies in October hit levels that were almost a five-year high, with cuts centred in the financial and auto industries. Challenger, Gray & Christmas said job cuts in October totalled 112,884, up 19 per cent from September. Job cuts are rising across the board, said John Challenger, the CEO of the outplacement firm. The layoff news comes just a couple of days ahead of the release of a U.S. government unemployment report on Friday. Economists are expecting to see 200,000 jobs were lost in October, pushing overall job losses to almost one million for the year. The unemployment rate is expected to rise to 6.3 per cent from 6.1 per cent. Some analysts expect U.S. unemployment will rise to eight per cent before the situation improves. Service sector slowdownAlso on Wednesday, a private U.S. research group, the Institute for Supply Management, said activity in the service sector fell in October. The trade group said its services sector index fell to 44.4 in October from 50.2 in September. An index number below 50 indicates contraction in activity. Economists polled by Thomson Reuters had been looking for a reading of 47.5. The soft service-sector report came just two days after similar manufacturing sector showed activity for October came in its worst reading since September 1982, a time when the U.S. was in recession. RelatedInternal LinksIN DEPTH: The Bottom Line: Complete economic coverage from CBC News Consumer HeadlinesForget herbicides, weed-whackers: get some goats, study saysMunicipalities across the country should consider swapping herbicides for goat herds to control weeds on environmentally sensitive lands, a B.C. study has concluded.Generic drug maker loses case in Canada's top courtThe Supreme Court of Canada has rejected an attempt by a Toronto-based generic drug maker to prevent brand-name pharmaceutical companies from patenting specific parts of previously patented medicines.Cape Breton distillery toasts scotch shortageNova Scotia's only distiller is hoping to cash in on a worldwide craving for fancy whisky that's leaving shelves bare across Canada.New U.S. figures show labour troubles aheadNew U.S. figures released Thursday point to growing labour pains as Christmas looms. Rise in commercial building permits offsets fall in housing sector: StatsCanMunicipalities issued $6.5 billion worth of building permits in September — an increase of 13.4 per cent over the previous month, Statistics Canada said Thursday. Consumer Life FeaturesENERGYElectric trucksVancouver's Envia aims to energize fleet vehicles CONSUMERAuto salesHow to avoid car buyers' remorseSAFETYRecalls and AdvisoriesBLOGFood BytesTightening the belt before dinnerMOBILE TECHNOLOGYNotebook computersCheap versus chic laptopsCOMM-ODDITIESAuctionOzark cave owner turns to eBay in search of a bidderPeople who read this also read …
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