Hard Times: Layoffs Highest Since 9/11

The number of layoff announcements involving at least 50 workers rose in September to the highest level since the Sept. 11 terrorist attacks seven years ago, the government said Wednesday. There were 2,269 mass layoff actions, up 497 from August, according to statistics released by the Labor Department. That was the most mass layoffs since the 2,407 in September 2001.

Overall, the number of initial claims for unemployment benefits related to mass layoffs rose by 61,726 to 235,681. That was the highest level since September 2005, after Hurricane Katrina devastated the Gulf Coast, resulting in 297,544 claims.

The manufacturing industry pulled the most devastating numbers, accounting for 28% of all mass layoffs and 36% of unemployment insurance claims in September. More specifically, 19,278 of the 46,391 claims in that industry came from the transportation equipment sector.

"Most manufacturers are pretty secure," said Chris Kuehl, economic analyst for the Fabricators and Manufacturers Association. "But there's been a lot of action in the auto and aerospace sectors, such as the Boeing strikes and the low demand for cars due to the credit crunch."
Kuehl believes that layoffs at auto and aerospace companies, a large segment of the manufacturing industry, don't tell the whole story. "After all, the medical manufacturing and energy segments are gangbusters," he said.

It has come down to companies looking at the nice-to-haves and the must-haves, and the employees that are not essential will be up for review. You can count on a lot of hard-working, quality people losing their jobs if this pattern continues.



4:22pm Dow ends down 514 points, Nasdaq at 5-year low as weak earnings, slumping oil prices add to recession fears