John Challenger
John Challenger
Challenger, Gray & Christmas, with headquarters located in Chicago, Illinois, is the oldest executive outplacement firm in the US. It has offices throughout North America...
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The strong economy prompted ambitious yearly plans on the part of many companies, especially those in consumer goods manufacturing, ... In order to meet those goals, as well as to stay competitive in today's global 24-hour economy, several companies in the poll have added or plan to add third shifts, creating the need for even more workers.
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The very heavy downsizing reported in November is more confirmation that the effects of the Sept. 11 attack on the economy have been substantial. In the eight years we have tracked job cuts data, the downsizing for the last three months has been at levels never before seen.
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Even in this runaway economy that has some factories running 24 hours, ... employers are still able to find areas that can be trimmed or eliminated altogether.
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Continued job cutting as a result of a slowing economy and increased outsourcing could prompt a significant decline in job security and a subsequent reduction in consumer spending just as we head into the all-important holiday shopping season,
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Merger/acquisition activity was the second leading cause of job cuts (in January), behind cost-cutting. It will continue to be among the top job-cut reasons this year as an improving economy and increased competition force industry consolidation.
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It is difficult to attract new businesses to a city if there are not enough skilled workers to employ. It is much more difficult to attract new people if there are no jobs immediately available, ... What smaller cities are accomplishing in this economy is truly amazing.
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We now see more and more of these Old Economy-New Economy hybrids cutting their online staffs, ... Companies that were hoping, if not expecting to eventually shift the lion's share of their business to the Internet may be forced to consider entirely new strategies for both short term and long term.
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Those are two areas of the economy that should be perking up right now if we were in a recovery mode, ... Normally, businesses hire temp workers and work their employees longer -- this drop is of real concern and raises the specter of a double-dip recession.
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Layoffs are still very high, and the economy seems to be showing little sign of pulling out of the doldrums, ... These lower cuts may just mean that we aren't seeing any further dips right now -- that we're just in this kind of steady, low-wattage kind of state.
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Many are waiting with bated breath to see if the economy continues to add jobs at the rate it did in March. If it does not, it could be serious blow to consumer and business confidence, thus slowing the momentum of the recovery again.
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While some forecast the economy to be strong this year, some areas hit with heavy downsizing could struggle.
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Even when the economy is fully recovered and companies are back in expansion mode, we may not see a revival in hiring of the rank-and-file worker. Cost containment oriented companies, in an effort to become more agile in this increasingly competitive global marketplace, will rely more an more on a just-in-time workforce of contract and contingent workers.
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There is a lot of extra fiscal stimulus moving into the economy from the storm relief.
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The question for the economy at large is to what extent will it absorb these people and these businesses.