Yet more bad economic news for Bush...
Business - Reuters
Job Cuts Top 100,000 in January - Report
Tue Feb 3,12:50 PM ET Add Business - Reuters to My Yahoo!
NEW YORK (Reuters) - Planned job cuts in January were 26 percent higher than in December as U.S. jobs moved to countries like India, China and the Philippines, and as mergers made some jobs redundant, according to a report on Tuesday.
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The outplacement firm Challenger, Gray & Christmas Inc., said post-holiday job cuts reached 117,556 in January surpassing the 100,000 threshold for the first time since last October.
Financial markets were on their toes awaiting January's payrolls report to be issued by the Labor Department (news - web sites) on Friday after a disappointing December report that showed an increase of only 1,000 jobs.
Analysts had expected 150,000 new jobs to show up in the data, and the worse-than-expected outcome showed that the U.S. economic recovery has yet to produce sustained jobs growth. Economists again expect a figure of 150,000 new jobs in January.
Poor job creation is a headache for President Bush (news - web sites) as he seeks re-election in November. The economy -- specifically job creation -- is expected to be a key issue in the campaign. Since Bush took office, more than 2.3 million non-farm jobs have been lost.
According to Challenger, consumer product companies led the January cutbacks with 22,775 job cuts, the largest number of reported job cuts in that sector in a single month since 1993, according to Challenger.
Challenger said one of the main factors for the job cuts in January was an increase of employers eliminating jobs in the United States and shifting to service providers in India, China and the Philippines among other countries.
Another factor was an increase in mergers so far this year. The survey's head, John Challenger, noted in a statement that one of those mergers will result in "as many as 10,000 job cuts to take place as redundant positions are eliminated."
