Job cuts increased 69% in January from the previous month, as the U.S. economy continues to struggle amid a housing and credit slump, according to a survey released Monday by a consulting firm.I believe that the worst is yet to come. The financial industry has just started to lay off and the housing market has yet to bottom. People are hurting financially and with easy credit a thing of the past how will families that have mortgaged their futures be able to keep pace?
Global outplacement consultancy Challenger, Gray & Christmas Inc. said planned layoffs swelled to 74,986 from 44,416 in December.
The year-over-year increase was 19% from January 2007's 62,975.
The January 2008 total represents the highest monthly job cut figure since August, when there were 79,459 layoffs.
The housing and financial sectors were hit the hardest, according to Challenger, while the retail, leisure and hospitality, and professional and technical services sectors actually saw employment gains last month.
But despite the large increase in layoffs month to month, job cuts remain well below the 2001 recession levels, which averaged 140,000 per month from March to September.
"The fact that job cuts have not reached pre-September 11 levels could be an indication that the impact of the economic slowdown on the job market may be muted," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, in a statement.
Challenger believes that if the government's proposed economic stimulus package works, the United States will avoid reaching the 2001 levels.
The American consumer has seen their debt load go from 7 trillion to 12 trillion under the failed economic policies of this administration. Until that debt is paid down I think a slowdown in spending isn't just certain its necessary. Without real pain now we risk even worse finances down the road. So much for wanting a better economic future for your children. That is now just a pipe dream.