The US benchmark index Dow Jones Industrial Average has plunged to its lowest level in five years, amid negative market sentiments in the world economy and some analysts predicting that recovery could take a long time. In the last ninety minutes of trading, the Dow index dropped to 8,579.19, the lowest level in five years, down as much as 679 points. In percentage terms the Dow saw its 11th largest since the index came into effect, with a fall of 7.3 per cent yesterday. The fall was witnessed even as foreign ministers of major powers are to meet today in Washington to chalk out steps to restore confidence in the light of failure of measures taken so far, including cut in interest rate, to stem the blood bath. Analysts said after the seventh straight day of losses, stocks have lost around USD 2.3 billion in a week as investors saw their wealth plummeting by USD 8.4 trillion dollars after year-long decline. In the last six trading days, the Dow has plummeted a staggering 2,251.8 points losing 20.8 per cent.
Canada’s unemployment rate was unchanged at 6.1 per cent in September, as a record 107,000 jobs were added to the economy, Statistics Canada said Friday. Last month’s job growth was the biggest increase in 30 years, and defied economists’ expectations for an actual decline in employment - following a drop in July and just small gain in August. There were 96,600 part-time jobs added in September and 10,300 full- time positions. ‘Five provinces accounted for the overall employment increase this September: Ontario, Quebec, Alberta, Saskatchewan and Nova Scotia,’ Statistics Canada said. ‘There were widespread gains by industry in September. ‘The largest increase in employment came from health care and social assistance, followed by business, building and other support services, and manufacturing. Employment also increased in transportation and warehousing, agriculture and construction.’ More.
To get its projected $5 billion per year in merger savings on the Wachovia Corp. deal, Wells Fargo & Co. will likely have to cut nearly 25,000 jobs nationwide. And about 1,000 jobs at Wachovia’s corporate headquarters in Charlotte, N.C., will be the first to go, according to people familiar with Wachovia’s operations. It remains possible that Wachovia’s operations will eventually gain jobs out of the deal, at least after the first couple of years of integration with Wells. It all depends on how much of Wachovia’s banking operations remain intact ‘ and how fast the banking industry recovers from its current woes. But the highest-paying jobs in Charlotte will likely be gone. Wachovia has about 20,000 employees in the Charlotte region. Mike Walden, an economist at N.C. State University, thinks Charlotte will lose some jobs for the foreseeable future. But he thinks the losses will be much less than if Citigroup had won the deal. And he says the job cuts may be less than if Wachovia had continued as a stand-alone bank. More.
Chicago Mayor Richard Daley is cutting nearly 240 jobs by combining several departments as the city continues to try to close a multimillion dollar budget hole. The city faces a deficit estimated at more than $400 million. Daley’s plan to combine departments from human services to planning comes less than a week before he’s set to introduce his city budget for 2009. Aldermen have said Daley is preparing them for a difficult budget. The city says the job cuts announced Friday will be achieved by layoffs and attrition. Daley has previously said he’ll lay off about 1,000 city workers. But it isn’t immediately clear if the latest cuts are part of that total.
Beleaguered U.S. boat maker Brunswick Corp. said it will cut 1,400 more jobs as the company shuts four plants and furloughs workers at three more - the latest round of layoffs as boat sales slump to near-record levels. The announcement, which sent the manufacturer’s stock to an 18-year low - came four months after the suburban Chicago company said it would eliminate 1,000 jobs because of the falling demand for recreational boats amid a poor economic environment. Counting Thursday’s announcement - prompted by worsening financial conditions, including rising oil prices and frozen credit markets - the company has slashed more than a third of its marine work force since the beginning of the year. "These actions impact not only thousands of people in our company but their families as well, and those are painful and life-changing for many," said Brunswick chairman and chief executive officer Dustan McCoy. "Our actions around reducing costs position us to be profitable in a smaller marine market, and to prosper when the economy and the marine markets improve." In July and August, industry-wide sales of fibreglass boats fell 40 per cent while sales of aluminum boats dropped 21 per cent, the company said, adding that September declines were likely to be worse. More.
The planned layoff of nearly 1,100 employees in the Dallas school district began Thursday, with the cutting of 150 non-contract employees and the elimination of 100 vacant positions. Layoffs in the district, which faces an $84 million budget shortfall, will continue at the end of next week when 550 teachers plus administrators and other employees will lose their jobs. "We’re very concerned about people’s well-being," Superintendent Michael Hinojosa said. "We expect that everyone today was treated professionally." Aimee Bolender, president of Alliance AFT teachers’organization, said in a story in The Dallas Morning News that many teachers are scared. "They’re almost beyond hysterical, and there’s no way it’s not affecting the classroom," Bolender said. "If a person is worried about whether or not they’re going to be employed, that’s a number one priority." More than 400 of the lost jobs are expected to include teachers in the core subject areas of math, science, social studies and English. An additional 500 employees ‘ such as teacher aides, hall monitors and clerks ‘ will also lose their jobs. More.
Today’s report of another 159,000 lost jobs confirms what America’s working men and women have understood for months: Our nation’s economy is on the wrong track. It is imperative that Congress act to address the financial crisis while protecting taxpayers and being good stewards of their dollars. But we must do more. America’s middle class needs help from a government that is truly standing on their side and not in their way. I am committed to getting to the roots of this crisis ‘ reforming Washington and cleaning up the mess created by the greed and crony capitalism of government-backed mortgage giants ‘ Fannie Mae and Freddie Mac. I will reverse out-of-control spending, end the wasteful and corrupting practice of earmarks, and get the government budget back to balance. I will reform health care to control costs and better serve American families, open markets around the globe for our products, cut taxes, and expand domestic production of energy to eliminate the ability of international oil markets to hold our economy hostage. I will create jobs and get the economy on the right track. Unlike Sen. Obama, I do not believe we will create one single American job by increasing taxes, going on a massive spending binge, and closing off markets. Our nation cannot afford Sen. Obama’s higher taxes. -John McCain. More.
A Whirlpool Corp. spokeswoman said Thursday that the company will lay off 440 workers, or more than 20 percent of the work force, at its Middle Amana plant. Spokeswoman Jill Saletta says the layoffs are the result of sagging market conditions. The company informed workers of its plans Thursday. The layoffs will comprise more than 20 percent of the more than 2,000 workers at the plant, which was part of Whirlpool’s acquisition of Newton-based Maytag in 2006. The majority of the cuts will be effective Oct. 20, with some coming a week earlier. "It’s a really tough time," Saletta said. "I’m fairly confident we’re not the only ones." The plant produces bottom-freezer refrigerators sold under Whirlpool, Amana, Maytag and other brand names.
Ford-owned carmaker Volvo Cars said Wednesday it will slash more than 13 percent of its work force because of falling global demand. Citing a "rapidly deteriorating market situation in the global car industry," the Goteborg-based company said it would cut about 3,300 jobs, of which 2,000 would be blue-collar and 700 of them white-collar positions in Sweden. Another 600 jobs would be eliminated abroad and some 700 contracts with consultants would be terminated. Including staff reductions already announced in June, Volvo Cars said total layoff numbers now come to around 6,000 people worldwide, of which about 1,200 are consultants. "These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation ‘ a company with more focused operations and structure," Volvo Car President and CEO Stephen Odell said. More.
More than 700 nursing posts are under threat in Northern Ireland as part of wider plans to cut almost 2,500 health service jobs over the next three years. Catherine Harte from Unison said patient care could suffer. "Any attempt to move ahead with the cuts to frontline jobs and services will be met with strong resistance from UNISON, including industrial action." Health Minister Michael McGimpsey has said he wants to make savings of 344m in line with Stormont efficiency plans. Mr McGimpsey said staff cuts were inevitable if services were to be saved. "We have to get more efficient because if we don’t do that we will eventually run out of money." Nine hundred administrative posts and 450 social services positions are also under threat. More.