One Million Job Cuts Predicted in 2009

Another one million Americans will likely be getting pink slips next year.

That's according to the latest forecast from layoff tracking firm Challenger, Gray and Christmas.

The Chicago-based company says employers have already shed more than a million jobs this year because of weak consumer and corporate spending, a trend that is expected to continue.

CEO John Challenger says a massive stimulus plan expected from the Obama administration is going to take time to work through the system. He says even if the Obama plan goes well it could be several months before we see the benefits.

Challenger says the state of the economy and the job market will have a significant impact on 2009 workplace trends. He says there could be a major shift toward telecommuting as employers look to cut costs without turning to layoffs.

Challenger says many companies have already found they can save big on real estate costs by having employees work from home.

He says job seekers are also likely to turn to the Internet, enhancing their work search through video resumes posted on YouTube and the use of social networking sites. The national unemployment rate is now at six-point-seven percent.

Some economists expect that number to go as high as nine percent before the job market even starts to rebound.

Challenger says health care, education and energy industries are likely to do the most hiring in the year ahead. He says construction could be the lone industry to see an immediate boost from Barack Obama's economic plans since they focus heavily on a nationwide infrastructure rebuilding program. Read more atarkansasmatters.com.

Source : MSNBC
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]