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Thanks for
the humor, Ed. Note to all: one of the oldest on the list often provides the
most humor. Maybe we
should be talking about how the uncertainty of imperialism and global warfare
in resource ‘hot spots’ is and could affect specific business trends and
globalization in general. I think
that the West’s preoccupation with solidifying resources and strategic outposts
in the Middle East and Central Asia will encourage the ASEAN coalition and
China in particular to build an economic community in Asia that will challenge
the West’s dominance on many fronts. I think
that if we don’t achieve significant progress (note I didn’t use ‘success’) in
Israel & Palestine, that we accelerate this process, if not guarantee
disaster. A few thoughts off the
top of my head: Ø Global foreign policy
should not be predicated on disaster reconstruction, either from natural forms or
man made warfare. Ø The revolution will be
localized. It will not be
anti-global. NGOs seem to be making better progress than big government fiat. Ø E-democracy and e-commerce
must be co-authors and partners, a grassroots embrace of populism not
corporatism. Gail? Anyone else? KwC Arthur, it's boring! Much more fun talking about terrorists! Ed And now back to the Future of Work. ========================================= Report on Business: Money & Markets A new worry for
lacklustre U.S. economy: Big job cuts; Report contradicts job growth consensus
28 July 2005 The
summer has brought with it hundreds of thousands of job cuts in the United States, a barrage that could
stall one of the slowest economic expansions in U.S. history. According
to Challenger Gray & Christmas Inc., the slew of large, high-profile U.S.
layoffs — which now number more than 200,000 since May — could signal an end to
a lacklustre U.S. economic growth cycle that started just four years ago. “This could be a sign
that the economy may have reached the tipping point of its expansion, and that
we might soon move into the declining part of the economic cycle,” said John
Challenger, chief executive officer of the Chicago-based executive-placement
firm, which also tracks U.S. employment trends. He said the forces
slowing the U.S. economy — rising energy prices, health care costs, interest
rates and tougher global competition — are leading to massive layoffs among a
wide array of U.S. companies. “If the summer surge
proves to be the first sign of an eventual economic slowdown, this would be
among the weakest expansions in recent times,” Mr. Challenger said. And while
the “mega-cuts” might not filter down to the next labour report, he said they
“might be a harbinger of more difficult job conditions in the next year.” The report certainly
contradicts consensus expectations that the U.S. economy will generate 180,000
non-farm jobs in July. The unemployment rate, which peaked in June, 2003, at
6.3 per cent, is expected to hold steady at 5 per cent, the lowest since
September, 2001. The next U.S. jobs report is slated to arrive Aug. 5. U.S. employers added
146,000 new jobs in June, up from 104,000 in May. Federal Reserve Board
chairman Alan Greenspan has said the economy is in a period of sustained
expansion and that the labour market is improving despite soaring energy costs,
suggesting that U.S. interest rates will continue to rise. Mr. Challenger said the
Fed will keep raising rates, because it is trying to build up some ammunition
in the event that it needs to cut rates to battle the next economic downturn.
“Certainly, if this slowdown becomes more manifest, they would not be able to
justify any more interest rate hikes.” He said the slew of
summer job cuts, and the fact that they are coming from a gamut of industries,
is worrisome. “A growing number of white-collar job cuts could erode economic
stability and the housing boom as these higher-income earners are unable to
meet rising interest payments.” Although
the summer months are usually light on staff reductions, nearly 200,000 were
announced in May and June, the Challenger report said. Summer layoffs are
currently on track to match or surpass those announced in the first four months
of this year, a period of typically much-heavier downsizing. In the
past 10 years, the number of job cuts between May and August were 20 per cent
below the number announced in the first four months of the year, and 26 per
cent below the number announced during the last four months of the year,
Challenger said. But
this year, staff cuts were up 42 per cent in May and 35 per cent in June from
April, according to Challenger's research. “Five out of the six largest job
cuts announced so far this year have occurred since May,” Challenger said. In addition, the
Challenger report noted that most of the job cuts have been large, with
individual companies cutting payrolls by more than 10,000 workers. Last Friday,
Dallas-based paper company Kimberly-Clark Corp. said it plans to do away with
as many as 6,000 jobs, mostly in North America and Europe. Employees of Rochester,
N.Y.-based Eastman Kodak Co. are also bracing for pink slips. The money-losing
photography company raised its job-cut target to between 22,500 and 25,000
workers from an earlier target of between 12,000 and 15,000. And Palo Alto,
Calif.-based computer manufacturer Hewlett-Packard Co. plans to eliminate
14,500 jobs, nearly 10 per cent of its work force. In direct contrast,
Canadian layoff announcements have been few and far between this summer. _______________________________________________ |
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