US set to lose 2 million jobs

[Sleeping Cobra]

The Pentagon will see massive cuts over the next decade to adjust the ever-expanding US deficit. A new study reveals, however, that the immediate impact of those adjustments could cost 2 million Americans their jobs in the next year alone.

The Aerospace Industries Association released the findings of a report on Tuesday that suggest that the automatic cuts in federal spending slated to kick in on January 2 have the potential of being far more damaging than imagined.

The author of the report, Dr. Stephen Fuller of George Mason University and Chmura Economics and Analytics, suggests that while the Obama administration-endorsed sequestration goes about as scheduled, more than 2 million Americans will see their jobs eradicated in just 2013.

"If they are allowed to occur as currently scheduled, the long-term consequences will permanently alter the course of the U.S. economy's performance, changing its competitive position in the global economy," the report warns.

The expected cuts are touted as a necessary means to adjust the country’s growing deficit by way of decreasing Defense Department spending. This latest analysis reveals, however, that it isn’t just those with direct ties to the Pentagon who will be jobless. While the future of the Aerospace Industries Association — a trade group with close ties with the Pentagon — is obviously at stake, Dr. Fuller’s report says that it will be more than just military men and women made jobless by the cuts. In addition to lay offs coming to defense contractors and others with close DoD ties, the study suggests that as many as 600,000 federal workers will lose their jobs.

Dr. Fuller adds that the automatic cuts, if triggered next year, could cause the US to see it’s gross domestic product drop by $215 billion in 2013, in turn plummeting consumer confidence and perhaps paving the way for years of irreversible damage.

As the Associated Press reports, however, the federal government has not outlined specifics of the sequestration plan, suggesting that there is indeed some degree of uncertainty in the AIA released report. Later this week, the US House of Representatives is expected to vote on a measure that, if passed, could force President Barack Obama to put forth specific details about where the cuts will occur.

"The federal agencies haven't said what they would cut back," Dr. Fuller tells the AP. "They don't have too many choices because most of their budget is payroll, where the Defense Department has more choices because most of its budget isn't payroll."

http://rt.com/usa/news/us-million-jobs-report-406/

[Sleeping Cobra]

http://dailyjobcuts.com/

[Sleeping Cobra]

Date: Monday, July 16, 2012, 2:48pm EDT

A planned layoff of 30,000 workers at Hewlett-Packard (NYSE: HP) pushed technology firm layoffs to a three-year high, according to human resources consultancy Challenger, Gray & Christmas Inc.

Altogether U.S. tech firms planned to slash 51,529 jobs during the first six months of 2012, a 260 percent increase over the same period last year, per the report from the Chicago firm.

“Announced in March, the decision by Hewlett-Packard to shed 30,000 jobs from its payrolls this year was driven primarily by the firm’s loss of competitiveness across several of its business areas. Many point to its inability to compete with Apple on the tablet front, while failing to keep up with IBM and Accenture on the consulting side,” said John Challenger, CEO of Challenger, Gray & Christmas, in a statement.

Meanwhile, the mid-year total of tech firm job cuts is 39 percent higher than last year’s year-end total of 37,038 jobs lost.

http://www.bizjournals.com/boston/ne...-surge-to.html

[Troke]

The next POTUS has to cut through the bureaucratic red tape with a broadsword or business is not going to hire those people laid off. O won't do it and Romney has been vague about the broadsword.

[TerryK]

Since the space shuttle program has been disbanded you should see the east coast of Florida around Cape Canaveral, Cocoa and Titusville. Houses vacan. Homes that sold for +300k now going for 130K, but no jobs in the area. Last time they shut Apollo down, there were engineers pumping gas. No people pump their own.

I hate to see what the results will be from the much much larger defense cuts.

[energy_wave]

Private industry is about to open space in a very big way. That is America's new economic engine. Energy independence too, with an enormous amount of natural gas expected to come on line in the next few years.

[DrJerry]

"US set to lose 2 million jobs..." I didn't know there were 2 million jobs left in the US.

[Sleeping Cobra]

No wonder we are importing way less from China. Economic Dot. (Unemployment)

[dero50]

I guess we can "HOPE" for "Change" %^)

[LightEcho]

If we are going further into debt each year $1.5 trillion, that is $7,500 per person or $30,000 for a family of 4.

The deficit spending has made it seem like things are not so bad yet. How long do you think they can keep spending $7,500 per year for you, on top or what they already collect from taxes?

[rodeorector]

I've been running out of money before the end of the month. I think I'll just raise the debt ceiling.

[Double_A]

This is why we start wars.

Central Bank & War model

[Sleeping Cobra]

Lockheed May Fire 10,000 Under Budget Cuts, Stevens SaysLockheed Martin Corp. (LMT) may have to dismiss about 10,000 of its 120,000 employees if Congress doesn’t avert $1.2 trillion in across-the-board cuts to federal spending, according to Robert Stevens, the company’s chief.

The “seat of the pants” estimate is based on expected budget cuts of about 10 percent in defense and 8 percent in other government programs, according to testimony that Stevens, chairman and chief executive officer of the world’s largest defense contractor, plans to deliver to the House Armed Services Committee tomorrow.

The company is obligated by federal law to give workers 60 days’ notice of mass layoffs before the cuts, known as sequestration, start taking effect Jan. 2, he said. Stevens and Bethesda, Maryland-based Lockheed have taken the lead in asserting the budget cuts would require advance warning to workers for contractors and their suppliers.

Because it’s not clear “exactly who will be affected by layoffs, or whether any plant closings will be necessary absent legal or contractual relief, our best judgment is that we may have to notify a substantially higher number of our employees beginning late in the third quarter of this year that they may not have a job if sequestration takes place,” Stevens said in the prepared testimony obtained by Bloomberg News. “We do not look forward to making those notifications.”
$1.2 Trillion

The defense reductions are part of $1.2 trillion in automatic, across-the-board cuts that were imposed after talks failed last year on a bipartisan plan to curb the nation’s debt. The defense portion of the cuts amount to $500 billion over a decade, and the cuts in 2013 will reach $55 billion once interest is included.

In addition to Stevens, executives scheduled to testify at tomorrow’s hearing are Sean O’Keefe, chairman and CEO of EADS North America; David Hess, president of United Technologies Corp.’s Pratt & Whitney unit; and Della Williams, president of Williams-Pyro Inc., a small business based in Fort Worth, Texas.

Tension is growing between congressional Republicans, who largely oppose allowing the defense cuts to advance, and the Obama administration, which has given little guidance about how the cuts will be implemented. Similar budget sequestrations in the 1980s and 1990s offered little flexibility to federal agencies.

Stevens and other executives say the uncertainty already threatens their relationships with workers and suppliers.
‘In Motion’

“The current uncertainty has effectively put sequestration and its consequences in motion,” O’Keefe of Eads said in his prepared testimony. “In absence of any guidance, industry is already holding back investments, questioning the fairness of ongoing competitions, doubting the viability of existing contracts and starting to trim capacity.”

Left unchecked, O’Keefe said, the cuts are “a recipe for endless argument, litigation and gridlock” that could drive costs beyond the level of savings the cuts were enacted to produce.

Hess of Pratt & Whitney said his company is already adjusting to other defense cuts that have curbed its production of the engine it provides for Lockheed’s F-35 Joint Strike Fighter.

A few years ago, the company projected it would be making “well over” 100 of those engines annually by now, Hess said. Instead, this year the company will make about 50, and next year the number will be lower, with sequestration threatening to bring it down even more.

“If sequestration were to go into effect, no amount of juggling is going to preserve my workforce or help me maintain my supply base,” Hess said.

http://www.bloomberg.com/news/2012-0...vens-says.html

[BH]

How long do you think they can keep spending $7,500 per year for you

Wow $7500 on little ole me. They take almost twice that from me. Guess that's a good deal. Guess I need some personal organizing, kinda like all those communities have undergone. How 'bout sending me $100 and I'll gladly send you back $50, then you to can also be a part of the master plan....

[mzkitty]

My son's work just offloaded hundreds of jobs to the Philippeans. He still has his so far because he consistently gets rave reviews from clients. But two days ago, computer techs came in and started taking out the computers from the empty cubicles. My son says so what are you doing with them all, and the guy says they're being "donated." Those jobs ain't coming back. This company has been here forever!!! It's disgusting. We'll see how long my son still lasts, they have other clients but the owner will probably offload them too. He asked one of his bosses last night more or less how he was doing, and the boss told him, "You're OK." So he's not on THE LIST -- yet. Well, at least they dumped the muzzie chick who had the nerve to ask for 10 days off for Ramadan.

[LightEcho]

Wow $7500 on little ole me. They take almost twice that from me. Guess that's a good deal. Guess I need some personal organizing, kinda like all those communities have undergone. How 'bout sending me $100 and I'll gladly send you back $50, then you to can also be a part of the master plan....

No- that money is not given to you! It is spent FOR you. And that $7,500 is deficit spending on your behalf. If you pay $15,000 in taxes, then you can feel patriotic in knowing that the government is spending $22,500 on your behalf on many worthy causes.

My son's work just offloaded hundreds of jobs to the Philippeans. He still has his so far because he consistently gets rave reviews from clients. But two days ago, computer techs came in and started taking out the computers from the empty cubicles. My son says so what are you doing with them all, and the guy says they're being "donated." Those jobs ain't coming back. This company has been here forever!!! It's disgusting. We'll see how long my son still lasts, they have other clients but the owner will probably offload them too. He asked one of his bosses last night more or less how he was doing, and the boss told him, "You're OK." So he's not on THE LIST -- yet. Well, at least they dumped the muzzie chick who had the nerve to ask for 10 days off for Ramadan.

The person being dropped is usually the last to find out. They won't give you a warning if they want you to keep producing.

[mzkitty]

The person being dropped is usually the last to find out. They won't give you a warning if they want you to keep producing.

Yeah, we know that. Luckily he will be able to get unemployment if that happens.

I told him, just go in, do your job, don't stress, what else can you do? He will be sending out resumes again for sure.

[LightEcho]

Yeah, we know that. Luckily he will be able to get unemployment if that happens.

I told him, just go in, do your job, don't stress, what else can you do? He will be sending out resumes again for sure.

Yeup- I think most of us are in the same boat. Could sink any time.... then just swin away.