262 ordspråk av John Challenger

John Challenger

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Companies are looking at their staffing needs for the balance of 2001 and the numbers do not present a very positive picture. The most worrisome aspect of the job-cut numbers, in terms of serving as an economic barometer, is the fact that job cutting has been heaviest in both manufacturing and technology.

Changes at the top are typically followed by changes further down the ladder. However, the high number of job cuts this year could also be leading to CEO changes.

The market has very high expectations. The unrelenting search for profits is driving companies in an era when they can't raise prices and some of their potential for expansion overseas is being crimped.

It is clearly a seller's market. There has probably never been a better time to be looking for a job, especially for those seeking positions in industries that require highly specialized knowledge and skills.

Companies, through their downsizing, continue to take the steam out of the wage inflation engine by cutting people when the pressure gets too high.

We ask all of our job seekers in the out- placement program to only look at the web after 6:30 at night or before maybe 6:00 in the morning. It is a soaker up of time and in a job search, you've got to get out and see people. You can't sit behind a desk and tinker with your resume.

Companies are much more nimble today. They're cutting costs, but then they grow in new areas, so layoffs continue at the same time as job growth.

The very heavy downsizing reported in November is more confirmation that the effects of the Sept. 11 attack on the economy have been substantial. In the eight years we have tracked job cuts data, the downsizing for the last three months has been at levels never before seen.

Retailers are being forced to turn into discounters at all levels, and that early transformation to a discounting posture is putting great pressure on profits. Retailers make a good percentage of their profitability in the last two months of the year. This year those earnings are going to be under real pressure. They'll be fighting to keep costs down.

October and November were the second- and third-heaviest months of the year for layoffs. We returned to the levels of job cutting we saw in 2001, which was the heaviest year we've ever tracked.

A growing number of unemployed Americans waste time browsing the estimated 4,000 to 5,000 online job sites, blanketing them with resumes, and then waiting for callbacks. It is a formula for long-drawn-out joblessness.

People who have been out for a while say, 'I've got to get back to work,' so they take downgraded jobs. Maybe they can't get a job as the plant manager, so they try to get a job as a manager on the factory line and work their way back up.

Job-cut announcements have been on a roller coaster ride this year. The lack of any discernible trend in corporate downsizing is indicative of the uncertainty associated with the current economy.

This may not mean that telecom is the weakest of the technology industries, but it is clearly the most volatile. While some areas in this industry are consolidating, others are expanding.

Many are waiting with bated breath to see if the economy continues to add jobs at the rate it did in March. If it does not, it could be serious blow to consumer and business confidence, thus slowing the momentum of the recovery again.

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