Two economists now claim that the credit crisis fear last fall may have been the primary reason for many of the layoffs that we are now seeing. Like you've read here in recent weeks, they agree that indications point to a moderation of the those job losses in the coming months. In fact, as you've read here, companies may be looking to get those workers right back.
The Lehman bankruptcy "scared the living daylights out of companies," said Ken Mayland, president of ClearView Economics LLC. "It may prove to be the case that companies cut too much."
Maryland, who in the past has won best forecaster awards in Bloomberg's Markets Magazine observed, "They were very fast to pull the trigger."
Antony Nieves, chairman of the Institute for Supply Management's non-manufacturing survey agrees.
When credit was tight back in Oct/Nov 2008, many companies were forced to focus on short-term survival rather than on long-term goals. Now that credit conditions are returning to normal, "some of those workers will be needed back, for sure." confirms Nieves.
(Thanks to an alert anonymous reader for the tip on the Maryland/Nieves pair. Keep those emails and comments coming.)
Saturday, February 7, 2009
Employers Laid Off Workers Too Quickly Some Say
Spread Good News By Sharing This Article With Your Friends. Click the Orange Plus Sign...
Subscribe to:
Post Comments (Atom)
If you prefer RSS feed subscription...
...Click This Icon For The RSS Feed
Posts
Actually for once, I sort of agree with you.
ReplyDeleteWith one side comment - the workers will be rehired at lower wages.
And if they're not at least "Gen X" or younger, then the prospects will be pretty grim.
One has to take an optmisitic view. If this were always true, then US wages would have stayed at $0.40 cents an hour since WWII. Also, relative to market, depressed wages leads to depressed prices. Retailers will need to compete more effectively knowing that consumers are more frugal with their budgets.
ReplyDeleteThe bankruptcy of Lehman brothers is due to their negligence and consequences are for all of us the poor innocent public to face.
ReplyDeleteElton,
ReplyDeleteyou need to add a google widget add google, so that people can add you to their iGoogle front page.
I have a similar blog as you Betting on Brasil, brazil.melhores.com.br, also typepad, and you will see the widget. But first create your iGoogle front page, and then click the widget in your site, or mine if you wish to try it out immediately.
Good news form brasil. Auto sales increased in january 92%, repeat 92%, obviously rebounding from a -50% in 2008. The CRISIS IN BRAZIL IS OVER, we now have some PROBLEMS to solve, but to use the world crisis for Brazil is irresponsible.