Job Cutters May Reap What They Sow

by Guest Sat Jul 16, 2011 9:25 am

For an individual company, keeping down labor costs is a smart move. But the U.S. economy as a whole suffers when weak labor markets hold back consumer spending. The same companies that are laying off workers today will soon wonder why they have no customers later on.

Two years into the recovery, and it still feels like recession in the U.S. labor markets. Job growth — which in turn generates more income for consumers — can only gather a head of steam if two trends are in place: layoffs diminish and businesses go on a hiring spree.

The latest data casts doubt upon both.

http://blogs.wsj.com/economics/2011/07/12/job-cutters-may-reap-what-they-sow/

by jmainframe Sat Jul 16, 2011 12:40 pm

What goes around comes around!

by marrer Sat Jul 16, 2011 2:38 pm

Wow. Last night on the news I heard a story that said the people that work in the Unemployment Office in Colorado are facing lay-offs even though they are literally weeks behind in processing benefits.

DENVER (CBS4)- The Colorado Department of Labor and Employment, already overwhelmed with unemployment claims, is preparing to lay off anywhere from 30 to 100 employees.

“It’s going to make things unbearable- they’re already difficult but they’d be unbearable,” said Chris Cartwright of Longmont, who has been on unemployment since he was laid off in February.

Cartwright said the times he has had to call the CDLE for assistance with his unemployment claims, he’s been on hold for about two hours waiting to speak to a live person.

So, ah, I just have one question: How's that recovery wokin' for ya?

by Guest Sat Jul 16, 2011 5:20 pm

DesperateInRI wrote:
For an individual company, keeping down labor costs is a smart move. But the U.S. economy as a whole suffers when weak labor markets hold back consumer spending. The same companies that are laying off workers today will soon wonder why they have no customers later on.

Two years into the recovery, and it still feels like recession in the U.S. labor markets. Job growth — which in turn generates more income for consumers — can only gather a head of steam if two trends are in place: layoffs diminish and businesses go on a hiring spree.

The latest data casts doubt upon both.

I surely doesn't look like anything is picking up. However, this could be solved with a jobs program, we would be employed, paying taxes, paying bills and buying goods. For whatever reason, when it comes to extending benefits or a jobs program, they don't want to listen to what the economists have been saying since 2007/2008. If people aren't earning, no taxes. If people aren't buying, no reason to hire, in some cases, lay offs continue.

http://blogs.wsj.com/economics/2011/07/12/job-cutters-may-reap-what-they-sow/

by jmainframe Sun Jul 17, 2011 12:55 pm

marrer wrote:Wow. Last night on the news I heard a story that said the people that work in the Unemployment Office in Colorado are facing lay-offs even though they are literally weeks behind in processing benefits.

Now this makes a lot of sense! Talk about penny wise and pound foolish. I think officials in Colorado need to take a step back and rethink this.

by couth11 Sun Jul 17, 2011 1:09 pm

jmainframe wrote:
marrer wrote:Wow. Last night on the news I heard a story that said the people that work in the Unemployment Office in Colorado are facing lay-offs even though they are literally weeks behind in processing benefits.

Now this makes a lot of sense! Talk about penny wise and pound foolish. I think officials in Colorado need to take a step back and rethink this.

It sounds punitive. The cuts directly harm the jobless, and the agency which was set up to help the jobless.