Tag Archives: job cuts

Vacating the Workplace

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The economic woes may not be over yet, but times have changed enough for more employees to enjoy summer vacations in the coming months. So say the workplace experts at Challenger, Gray & Christmas, Inc.

I do, however, have a problem with the advice on staying connected even while away. Read on.

According to John Challenger, "Where we will see the change this year is among the employed who, despite their job status, were hesitant to take paid leave during the recession for fear that it would further erode their already fragile job security. This year, while employers have been slow to ramp up hiring, they have clearly shifted from a strategy focused on downsizing to one emphasizing retention. In this environment, it is much easier to put in for vacation days."

Through the first quarter of this year, announced job cuts declined 69% from the same period a year ago. In fact, the first-quarter total was the lowest for those three months since 2000. And the 38,326 job cuts in April were the lowest for any month since July 2006.

"The threat of downsizing never really disappears," Challenger adds, "but job security is in a much better place this year. Some employers may, in fact, encourage workers to use vacation time to decompress. The temporary and very mild impact on workplace productivity caused by vacationing staff is more than offset by a rested workforced that is likely to be more productive over the long term and probably more loyal as well."

The workplace authority says that while job security is improving, it is still recommended that employees keep the lines of communication open with employers.

"You don’t have to spend a part of every vacation day working, but you want to take your cell phone and laptop and make an effort to occasionally check in with the office. If you want to be missed a lot, do not disconnect," Challenger says. "As employers shift toward retention mode, many will be eager to let you enjoy your vacation without interruptions from work, but make no mistake, your efforts to remain connected, even if unecessary, will be appreciated and remembered."

Not sure I buy that last piece of advice. Being available for true emergencies, if needed, is one thing. But checking in for the sake of showing you are still engaged while you are supposed to be resting and rejuvenating is another. There’s a reason it’s called vacation.               

Experts Predict Slow Jobs Recovery for 2010

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When it comes to the employment outlook, the private sector name to know is Challenger, Gray & Christmas. The Chicago-based outplacement and consulting firm offers this look ahead for the 2010 job market. The overview: positive news but tempered with a great deal of caution.

After starting the year with the heaviest downsizing in nearly a decade, the number of announced job cuts declined dramatically in the second half of 2009, providing hope for an eventual job-market turnaround.  The turnaround should become more evident in 2010, as job creation finally begins to outpace job losses.

However, while hiring is expected to accelerate in the new year, unemployment could remain stubbornly high, as millions of Americans who abandoned the job search out of frustration – and, therefore, not counted among the unemployed – reenter the labor pool. 

The economy is just beginning to pull out of the worst economic downturn in decades.  Since the recession began in December 2007, employers have announced nearly 2.5 million job cuts.  The heaviest downsizing occurred between July 2008 and June 2009, with more than 1.6 million job cuts announced.

Job cuts appear to have peaked in January 2009, reaching 241,729, the highest monthly total since January 2002.  In the months to follow, announced layoffs steadily declined, but the monthly average remained above 130,000 through the first half of the year.  Since July 1, however, monthly job-cut announcements have averaged about 69,000.  In November, job cuts fell to 50,349, the lowest monthly total since December 2007. 

“The end of the year is typically when we see a surge in layoff activity.  The fact that job cuts continued to decline in the fourth quarter is a good sign that the job market has truly started the recovery process.  Unfortunately, the recovery process is slow, so it could be several months or even years before unemployment returns to pre-recession levels,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

There were approximately 15.4 million unemployed Americans in November, up from 7.2 million in November 2007, just before the recession began.  In addition to the unemployed, there were 6.0 million Americans in November who want a job but were not considered part of the labor force because they had not sought employment for at least four weeks.  That figure is up from 4.2 million in November 2007.

According to Challenger, some of the areas that will begin to see renewed job creation in the new year include health care, information technology, government, financial services and energy. 

A Good Time to Find Top Talent

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I’m reminded once again that while the recession and particular slowdowns in certain industries have caused economic turmoil, the results have also put many very good workers into the marketplace. Companies, even those that might be suffering now, can also look to the future by hiring this top talent.

Leaders of several Chamber companies pointed this out a few months ago. The thought has been rekindled as I have seen close friends, general acquaintances and people I have known by their good reputation fall victim to job cuts.

From a state perspective, the best example is taking former autoworkers and using their mechancial skills in various advanced manufacturing circles. From an individual outlook, it’s the communicators, marketers, managers and many others who may have to look in a different direction but can certainly be assets for years to come.

For those looking to re-enter the working world, good luck. For the companies that not only wish to survive but thrive, take a look and see how you can help your organization today and tomorrow.