More Job Cuts Expected

The financial crisis in the U.S. could have wide-ranging effects on the job market and is having an impact on the number of layoffs planned in various sectors. It is still too soon to know how much worse it will get as the bailout acceptance or rejection will influence decision makers in the near furture.

The number of job cuts announced in September rose as the economy slowed, according to a report released today.

Positions lost rose 7.2% to 95,094 from 88,736 the previous month, and were 33% higher than the same month last year, when 71,739 cuts were announced, according to outplacement consultancy Challenger, Gray & Christmas, Inc.

September brought the announced layoff total for the third quarter to 287,142 - the largest number since 2005, according to the report.

• The computer industry took the biggest hit, with 25,715 positions on the line after PC maker Hewlett-Packard announced the largest workforce reduction of the year, the report said. HP said it would cut 24,600 jobs worldwide as a result of its acquisition of Electronic Data Systems Corp. But since those cuts were a result of the deal and not a consequence of the ailing economy, the report noted, HP's workforce could gain many of those jobs back.
• The struggling auto industry came in second place, with plans to drop 14,595 jobs
• The apparel industry came in third place, announcing 8,350 cuts, according to the report.
• The data showed that finance industry had announced 8,244 job cuts in September, compared with a spike of 27,169 during the same month last year as the credit crunch began to unfold. But they did jump from 2,182 in August.
  
  Whether the $700B bailout plan is approved by Congress - and what form it takes - will affect the number of layoffs that may eventually be announced, according to Challenger.
  "One of the big questions is: Are there going to be more runs on banks and financial institutions?'" he told CNNMoney.com.
  If there is no bailout plan, financial job cuts will likely increase, according to Challenger. On the other hand, if all banks take advantage of the government's offer, the number of layoffs could be limited, since no one institution is singled out.
  But if a bailout plan passes and is only embraced by a few institutions, that would emphasize the weakness of those companies, and we might see more job cuts, he added.

More Job Cuts Expected

Highest Jobless Claims in 7 Years

New claims for unemployment benefits jumped last week to their highest level in seven years due to the impact of a slowing economy and Hurricanes Ike and Gustav, the Labor Department reported Thursday.

The department said new requests for jobless benefits for the week ending Sept. 20 increased by 32,000 to a seasonally-adjusted 493,000, much higher than analysts' expectations of 445,000.

The two hurricanes added about 50,000 new claims in Louisiana and Texas, the department said. The four-week moving average, which smooths out fluctuations, rose to 462,500. That's the highest it has been since Nov. 3, 2001. The level of new claims was the highest since shortly after the 9/11 attacks, when it reached 517,000. David Resler, chief economist at Nomura Securities, said Thursday's figure is the second-highest since July 1992. Claims have topped 500,000 only a handful of times in the past twenty years, he said, and were consistently above that level during the 1991 recession.

Even excluding the effects of the hurricanes, jobless claims remain at elevated levels. Weekly claims have now topped 400,000 for ten straight weeks, a level economists consider a sign of recession. A year ago, claims stood at 309,000. The report "reflects a marked deterioration in the job market." Resler wrote in a note to clients. "That deterioration may well accelerate as the distress in the financial markets deepens and the effect of credit impairment spreads to other sectors." The number of people continuing to draw jobless benefits last week was 3.54 million, up 63,000 from the previous week and nearly a five-year high. The four-week average of continuing claims was 3.49 million. Other economic indicators Thursday were also negative.

Highest Jobless Claims in 7 Years

Where the Jobs are for Retirees

With the crisis in the financial markets and the volatility of the stock market, retirement may mean working at least part-time for many people.

According to a recent AARP survey, 8 out of 10 baby boomers want to keep working after they "retire," some because they expect to need the income or medical benefits, but many others because they aren't yet ready to feel they've been put out to pasture. "I really want to stay active and challenged," said Ortiz. "I've seen plenty of former colleagues retire and die shortly afterward, and I think that's because they had nothing compelling going on in their lives."

So let's say you're trying to plan your golden years, you've picked out a couple of places where you might like to live, and you're wondering about job opportunities there. Most towns' Chambers of Commerce are happy to send you an information packet describing local employers, and a subscription to the local paper will let you keep an eye on help-wanted ads in the area.

But now, thanks to a collaboration between AARP and a huge employment Web site for the over-50 crowd called RetirementJobs.com, there's a quicker and easier way:

• Go to www.aarp.org/money/work and enter the name or zip code of the town you're considering, plus a keyword describing what kind of work you're after ("sales" or "accounting," for example), and you'll get a listing of current job openings posted by local employers - many of them familiar national brand names like Staples (SPLS, Fortune 500) and Bank of America (BAC, Fortune 500) - that welcome older, experienced workers.
• The AARP site offers a wealth of other information and support for anyone planning to launch a second career in retirement. Check out The Water Cooler, an online discussion group about career issues for people over 50, and AARP's blog, ShAARP Session.
• Not surprisingly, a broad array of other online resources are popping up to help the 70-million-member boomer generation navigate the post-retirement career waters. No matter where you end up living when you've bid farewell to your current career, if you plan to keep working, here's a sampling of other sites worth a visit:
  Ageless in America - resources for older job seekers from Boom or Bust! New Careers in a New America co-authors Brad Taft and Carleen McKay.
  RetirementJobs.com - part job board, part advisor, and coach for job-seeking seniors.
  young2retire.com - Howard and Marika Stone, co-authors of Too Young to Retire: 101 Ways to Start the Rest of Your Life, offer coaching, a newsletter, profiles of interesting late-in-life career changers, and much more.

You may find all of these resources helpful, but don't forget to use the telephone and talk with people face-to-face to gain information, network, and secure retirement positions.

Where the Jobs Are for Retirees

Job Losses and Aftermath of Financial Crisis

In the next few weeks, the fate of Lehman Brothers' 25,000 and Merrill Lynch's 60,000 staffers will be decided. Most will lose their jobs. What will happen to them?

If the past is any guide, they'll be fine. In time.

Even before the current mess, some 104,000 U.S. financial jobs were lost in the 12 months ending August--1.2% of the 8.2 million positions in the country as the mortgage-market bubble ruptured and Wall Street convulsed. It's particularly painful for New York City, where many of these firms are based. In the last downturn, after Sept. 11, the city lost 45,000 finance jobs. So far 11,000 have been lost this time around, but that number will grow considerably as the fate of the Merrill and Lehman employees is decided.

And while the losses are big, they are part of a boom and bust cycle that's as old as the industry itself. In the nearly seven decades since the Department of Labor started tracking this data, the financial-services sector has posted three larger percentage losses in the same 12-month time frame--back in 1942, 1944 and 1991.

Already other banks are swooping in to pick over the bones of the failed companies. Barclays, who bought the investment banking arm of Lehman Brothers could hire some 8,000 to 10,000 of the firm's top revenue generators. The biggest stars at Lehman and Merrill will also find opportunities at former clients, mainly hedge funds.

Many small and medium-sized institutions will also be thrilled to hire those laid off at top-tier firms, a talent pool that mostly shunned them during headier days. Of course, taking a job at one of these less storied firms will require staffers to check their egos--and their usual pay requirements--at the door. It's not all bad. "These people can become a bigger fish in the smaller pond since they bring big Wall Street experience," says Sandy Gross, founder and managing partner of Pinetum Partners, an executive recruiter firm specializing in financial services.

The best bet for non-revenue generating staff in marketing, communications, client relations, and IT my be to leave the financial sector and look for positions in the growing areas like healthcare and sustainable energy. However, the vast, complex merger of Merrill Lynch and Bank of America should have ample potential for IT employees. Either way, they should be fine – over the next five years, according to the Bureau of Labor Statistics, there will be 1.9M jobs created in computer networking, which will account for a quarter of all new jobs during the period.

Another, albeit lower paying option, is government. Expect a regulation boom in the wake of this crisis--and all the trappings that go with it.

Some of these laid-off employees will find work in places we have yet to imagine. "After financial collapses there is always innovation," says Ghilarducci. She points to the home mortgage, which was developed after the Great Depression and the junk bond market after the stock market lost its juice in the late 1980s. Recent history offers further proof: The same mortgage securities boom that created the current crisis also created hundreds of thousands of new jobs

Job Losses in Financial Crisis

Reasons to Always Send Thank You Notes

Only 10% of all candidates send thank you notes after job interviews. You can maximize your chances of securing a position by sending a thank you note within 24 hours after an interview. Make sure you get the exact title and names of all those with whom you have interviewed and take the time to write a thank you to each of them.

6 Reasons to Send a Thank You Note

Thank you notes:

1. Remind the hiring manager who you are


2. Show the hiring manager that you really want the job

3. Enable you to highlight your unique ability to provide solutions and benefits will help the employer achieve specific goals

4. Illustrate your understanding of the importance of proper business etiquette and politeness in building professional relationships

5. Make you stand out since 90% of all candidates don’t send thank you notes

6. Might give you a second chance if your interview did not go as well as you had hoped it would

To maximize the benefit of sending thank you notes you can send an e-mail (for speed) and then send a handwritten note with your name printed or embossed on the note and the envelope. This will impress the employer and make you stand out from the rest of the candidates.

Every extra self-marketing tool can make a major difference in whether you are selected for the job.

For help in writing, or to purchase printed or embossed personalized thank you notes visit Thank You Notes.

2008 Best Performing Large Cities

Milliken’s 2008 Best Performing Cities – 200 Largest Metros

1. Provo-Orem, UT
2. Raleigh-Carey, NC
3. Salt Lake City, UT
4. Austin-Round Rock, TX
5. Huntsville, AL
6. Wilmington, SC
7. McAllen-Edinburg, TX
8. Tacoma, WA
9. Olympia, WA
10. Charleston-North Charleston-Summerville, NC

The Milken Institute/Greenstreet Real Estate Partners Best Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage, and salary and technology growth. The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance. The research was conducted prior to Hurricane Ike.

For the complete listing visit 2008 Best Performing Cities

Be Careful of Personal Information You Place on the Internet

One in five hiring managers say they use social networking sites to research candidates -- and 1/3 of them dimiss candidates after what they discover.

A survey by online job site CareerBuilder.com of 3,169 hiring managers found 22 percent of them screened potential staff via social networking profiles, up from 11 percent in 2006.

An additional 9 percent said they plan to start using social networking sites like Facebook or MySpace to screen potential employees.

The survey found that 34 percent of the managers who do screen candidates on the Internet found content that made them drop the candidate from any short list.

The top area for concern among the hiring managers were candidates posting:

• Information about drinking or using drugs
• Provocative or inappropriate photographs or information

Other areas of concern to arise from social network sites were:

• Poor communication skills
• Lying about qualifications
• Using discriminatory remarks related to race, gender or religion
• Having an unprofessional screen name

But the survey found hiring managers scouring social network pages was not all bad with 24 percent of these managers saying they found content to help them solidify their decision to hire that candidate.

Top factors that influenced their hiring decision included:

• Candidate's backgrounds supporting their qualifications for the job
• Proving they had good communications skills
• Having a site that conveyed a professional image with a wide range of interests

Be careful of personal information that you post on the Internet

Top Jobs for Satisfaction

"Work occupies a large part of each worker’s day, is one’s main source of social standing, helps to define who a person is and affects one’s health both physically and mentally.”

A survey of job satisfaction conducted by the General Social Survey (GSS) at the National Opinion Research Center at the University of Chicago, based on 27, 000 interviews indicates:
47% are satisfied with their jobs

Top 10 Jobs for Satisfaction
Clergy 87%
Fire Fighters 80%
Physical Therapists 78%
Authors 74%
Special Education Teachers 70%
Teachers 69%
Education Administrators 68%
Painters and Sculptors 67%
Psychologists 67%
Security and Financial Services Salespersons 65%
Operating Engineers 64%
Office Supervisors 61%

Other jobs in which 50 percent reported "high satisfaction" included: police and detectives, registered nurses, accountants, editors, and reporters. Apparently, the perceived prestige (as opposed to actual salary) of a profession had an effect on job satisfaction and general happiness.

Most Affordable Places to Retire in U.S.

The 40 largest Census-defined metropolitan statistical areas were ranked for cost of living factors like housing affordability and inflationary pressures. All data was provided by the Bureau of Labor and Statistics and the U.S. Census. The rankings by Forbes were also based on the:

• Number of persons over 65 who are currently employed.
• Percent of people living below the poverty level are in their golden years.
• Number of doctors per capita
• Number of citizens tapping their Medicare benefits per thousand people--an important issue for those 65 and older.

The top 10 Most Affordable Places to Live in the U.S. include:

1. Columbus, OH

Columbus has a low cost of living and affordable housing--seniors seem to get along just fine. More than a fifth of folks over 65 are employed, and that age group only constitutes 6% of persons living under the poverty level, which indicates that independent living is en vogue in this river city.

2. Dallas, TX

Dallas has a robust economy, thanks to the many corporations headquartered in the city’s center. With sunny weather, low taxes and Southern hospitality, this Texas town is a great place to retire.

3. Minneapolis, MN

This twin city has a reputation for big city arts and nightlife, but it can accommodate a retiree’s fixed budget. While the winter may be rough, the cost of living won’t be.

4. Houston, TX

With tax revenues flowing from the oil and alternative energy industries centered there and a bustling tech scene, retirees won’t need to worry that they are settling into a place on the slide. Throw in affordable housing and sunny weather, and Houston is a great place to begin again.

5. Salt Lake City, UT

Utah’s capital is growing fast. With nearly 16 doctors per thousand people--far above the national average--retirees can be reassured by the cluster of medical professionals and facilities nearby. With a median age of 30, retirees may not blend in, but they can be sure that economic growth is ahead.

6. Indianapolis, IN

This Midwestern city ranked No. 1 for housing affordability relative to income and No. 8 for inflation. With Purdue University providing some youthful vibrancy and Colts fans upping the energy, this is one reasonably priced and lively place to retire.

7. Denver, CO

A Rocky Mountain retirement will involve outdoor living, a vibrant nightlife, and a manageable cost of living. Denver, one of Forbes.com’s Best Cities for Singles, attracts people of all ages making it a good long-term bet for retirees who want to ensure that they are settling somewhere with a bright future.

8. St. Louis, MO

Greater St. Louis is growing fast and with good reason. Affordable housing and sluggish inflation (just 3.2% in June 2008) make this is a great place to retire.

9. Atlanta, GA

This southern city isn’t just for young singletons and families. In terms of net migration among people over 65, Atlanta ranked No. 3 with droves of older Americans picking this affordable and desirable place to spend their golden years.

10. Nashville, TN

With a population of 1,486,695, this city came in at No. 9 for affordable housing. It was also one of our Best Places for Business in 2007. Add in pleasant weather and all the benefits a community derives from a top-notch university like Vanderbilt and you’ve got a fine place to retire.

Most Affordable Places to Retire

US Jobless Rate at 5-Year High of 6.1%

The nation’s unemployment rate hit a five-year high of 6.1 percent in August as employers cut 84,000 jobs, dramatic proof of the mounting damage a deeply troubled economy is inflicting on workers and businesses alike.

The Labor Department’s report, released Friday, showed the increasing toll the housing, credit, and financial crises are taking on the economy.

The jobless rate jumped to 6.1 percent in August, from 5.7 percent in July. And, employers slashed payrolls for the eighth month in a row. Job losses in June and July turned out to be much deeper. The economy lost 100,000 jobs in June and 60,000 in July, according to revised figures. Previously, the government reported job losses at 51,000 in each of those months.

Wachovia Corp., Ford Motor Co., Tyson Foods Inc., and Alcoa Inc. were among the companies announcing job cuts in August. GMAC Financial Services this week said it would lay off 5,000 workers.

Job losses in August were widespread:

• Factories - 61,000
• Construction - 8,000
• Retailers - 20,000
• Professional and business services - 53,000
• Leisure and hospitality - 4,000

Those losses swamped employment gains in the government, education, and health.

Job losses at all private employers — not including government — came to 101,000 in August.

The government said workers age 25 and older accounted for all the increase in unemployment in August.

Average hourly earning rose to $18.14 in August, a 0.4 percent increase from July. Economists were forecasting a 0.3 percent gain. Over the past year, wages have grown 3.6 percent, but paychecks aren’t stretching as far because of high food and energy prices.