January sees 9000 job losses world wide every day
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NEW YORK: More and more people are becoming unemployed this year, with nearly 9,000 jobs vanishing worldwide on an average each day in January.
As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26. Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month. Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each. Dutch entities – electronics firm Philips and financial services company ING – together would be axing 13,000 jobs in the coming months. Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000. The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people. Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500. Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100). Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession. |
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Eurozone jobless at two year high
Unemployment across the nations that share the euro rose to its highest level in more than two years last month, as more firms laid off staff.
The eurozone unemployment rate totalled 8% in December, according to the latest official European Union data, up from a revised 7.9% in November.
Unemployment was highest in Spain, which recorded a 14.4% figure.
Meanwhile, eurozone inflation fell in January to 1.1%, its lowest level in almost 10 years, from 1.6% in December.
While Spain saw the highest unemployment last month, the lowest was Netherlands on 2.7%, and Austria at 3.9%.
Fresh rate cut?
The latest unemployment and inflation figures will increase the pressure on the European Central Bank (ECB) to further cut eurozone interest rates to help bolster the economy and bring inflation closer to its 2% target.
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 The decline in Spain’s property market is an extraordinary story Ben Shore, Europe business reporter
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Earlier this month the ECB trimmed rates by half a percentage point to 2%, its fourth reduction since September, when rates stood at 4.25%.
However, eurozone interest rates remain above the current 1.5% in the UK, and between 0% and 0.25% in the US.
The ECB makes its latest decision on interest rates next week, but the bank’s president Jean-Claude Trichet has so far hinted that there won’t be a fresh rise until March.
Economist Matthew Sharratt of Bank of America said the latest data had put the Bank in a difficult position.
“They [members of the ECB’s governing council] have probably put themselves into a corner for next week’s meeting,” he said.
The eurozone unemployment figures for December do not include Slovakia, which earlier this month became the 16th nation to adopt the single currency.
For the 27-nation European Union as a whole, the unemployment rate rose to 7.4% in December from 7.3% in November.
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