Californians keeps on losing jobs even before holidays also


JNN 24 Nov 2010 : California companies continue to lay off workers, with the majority being low tier workers like janitors and maintenance staff, as the holiday season starts.

For the past 15 months, California’s unemployment rate has stood at 12 percent or more.

Data from the state employment department shows California is losing on average 50,000 jobs per month.

Labor expert Mike Chavez believes the job market has never been worse in California.

He told JNN  that some of the larger companies are compounding the situation by letting more workers go before the end of the year.

“We’ve got banks, we’ve got big corporations that are starting to recover for themselves and make more money, and yet they’re cutting people at the bottom, the lowest paid people,” Chavez said.

Companies like JP Morgan Chase say the layoffs announced before the holidays give employees time to find new jobs.

Analysts say holiday layoffs occur when a company wants to boost its bottom line to appease its share holders. They also say bad publicity from the firings is usually outweighed the increased prices and stock.

A woman, who worked as a janitor in a Los Angeles high rise before she and dozens of her co-workers were let go, told JNN that they are fighting to get their jobs back as finding a job in California has become practically impossible.

“It’s a very hard thing because I’m a single mom and I have two kids that I have to support by myself. It has hit me really bad,” she said.

Chavez said the US would not fully recover from this recession unless it adopts a labor system that focuses more on the workers and less on what happens on Wall Street.

US unemployment on the rise


JNN 17 Nov 2010 : Unemployment in some US states is still on the rise, as the American labor market continues to struggle against the backdrop of a bleak economy.

In the state of Missouri, the jobless rate increased by 0.1 percent in October to stand at a depressing 9.4 percent.

That means that the state’s net payroll fell by 2,900 jobs, the Missouri Department of Economic Development said Tuesday.

This is while, according to the Missouri Office of Administration, individual income tax collections increased 7.7 percent in October compared to the same month last year.

The latest data shows that the US labor market remains sluggish, with some states reporting an unemployment rate as high as 10 percent.

Last month, Nevada, Michigan and California reported double-digit unemployment rates.

Meanwhile, the US Labor Department has announced a 20,000 increase in initial claims for unemployment benefits last month.

According to data released last week, almost 15 million Americans currently collect unemployment benefits.

However, even the jobless benefits are now faced with a crisis as concerns grow over reports that the Republican House majority may put an end to the aid.

US President Barack Obama is likely to discuss the matter with congressional leaders on Thursday.

Approximately 800,000 laid-off workers will be affected by the upcoming lapse in benefits.

The number is expected to increase to at least 2 million by next month.