The Specter of Job Cuts
The article “Job Cuts: Who’s Next?” published (last updated: October 30, 2008) on CNNMoney.com focuses on the recent job losses and the world wide recession. The recent collapse of the gigantic financial institutions has triggered a panic in the Wall Street to Main Street. People are justifiably scared as there has been loss of 760,000 jobs in September this year. According to the consulting firm Watson Wyatt 25% of the U.S employers are poised to retrench their work force. The experts believe that certain industries are more prone to job cuts than others. But the meltdown is not confined to U.S.A alone, U.K and other developed and developing countries have not been less affected, thanks to the globalization. But in the introduction Jessica Dickler hasn’t mentioned the Great Depression of 1930 which created widespread unemployment in U.S.A and U.K. There in no reference to the crash of stock markets of all major countries. The cause of this economic crisis has not been also explored. The sub prime lendings by Leman Brothers and other institutions in the real estates beyond the individual borrower’s paying capacity have brought about this financial disaster.
According to the director of the Center for Economic and Policy Research in Washington, D.C., more job cuts are in the offing following the mortgage meltdown in the commercial real-estate business in spite of the plan to consolidate the bigger houses. The collapse in the financial sector is indicated by the statistics from the Department of Labor which reports about the loss of 110,000 jobs, with more to follow in the wake of mergers and consolidations. It is clear that the trend of downsizing is here to stay.
The retailers face steep fall in sales due to credit crunch. People abstain from buying non-essential items. As a result even holiday season may not see any new recruits. In the opinion of the placement agencies the chances of hiring are dismal. It is worth noting that while the high-end boutiques are likely to be hard hit, the discount retailers like Wal-Mart may have slightly better sales figures and the workers may be spared the axe. Moreover, lesser consumption also leads to lesser advertisements which hit the print publications like newspapers and magazines. Traditional publishing houses face tough competition from the digital media which are becoming increasingly popular. The writer has highlighted the truth that every recession does away with some old industries. In the auto sector reeling under a 20% decline in sales, it is not the manufacturing units alone which are affected, but the dealers and suppliers as well. All industries relating to travel like the airlines, hotels, restaurants are undergoing layoff as customers have less money to spare on them. In the midst of doom, Bishop Kimberley, the head of an executive search firm sees the silver lining. He thinks job losses in some industries will create some opportunities elsewhere. He recommends focusing on the soft skills which can be used in another industry, when a particular industry is badly hit.
The content writer of this web page has presented the crisis of job cut s succinctly and dealt with each industry and its problems in brief readable paragraphs. She has also substantiated her view with statistics from reliable sources. The cyclical nature of recession would have been explicated better with past recessions and their causes.