Showing posts with label the big picture. Show all posts
Showing posts with label the big picture. Show all posts

Friday, November 2, 2012

Unemployment rate up 0.1% in October, U6 unemployment down 0.1%

Credit: Calculated Risk blog
Fresh electrons from the Bureau of Labor Statistics: the unemployment rate in October was up slightly to 7.9%, from 7.8% in September. The broader U6 measurement of unemployment was down 0.1% to 14.6%.

Chemical manufacturing payrolls increased by 1,600 jobs to 802,700 for the sector.

The news will be about the total nonfarm payroll number, with an increase of 171,000 jobs for October. Less discussed, but equally significant are the upward revisions of ~80,000 jobs for August and September.

There are 12 million people who are unemployed -- best wishes to them.

Thanks, as always, to Calculated Risk for the graph. 

Thursday, November 1, 2012

...And that's why I don't work retail

From the New York Times, the uncomfortable reality of attempting to work retail In Our Times -- that you'll be working shorter and shorter shifts:
At its store here, just east of San Diego, Shannon Hardin oversees seven self-checkout stations, usually by herself. Typically working shifts of five or six hours, she hops between stations — bagging groceries, approving alcohol purchases, explaining the checkout system to shoppers and urging customers to join the retailer’s loyalty program, all while watching for shoplifters. “I like it. I’m a people person,” said Ms. Hardin, 50, who used to work as an office assistant at a construction company until times went bad. 
But after nearly five years at Fresh & Easy, she remains a part-time worker despite her desire to work full-time. In fact, all 22 employees at her store are part-time except for the five managers. She earns $10.90 an hour, and with workweeks averaging 28 hours, her yearly pay equals $16,500. “I can’t live on this,” said Ms. Hardin, who is single. “It’s almost impossible.” 
While there have always been part-time workers, especially at restaurants and retailers, employers today rely on them far more than before as they seek to cut costs and align staffing to customer traffic. This trend has frustrated millions of Americans who want to work full-time, reducing their pay and benefits. “Over the past two decades, many major retailers went from a quotient of 70 to 80 percent full-time to at least 70 percent part-time across the industry,” said Burt P. Flickinger III, managing director of the Strategic Resource Group, a retail consulting firm.
If you read further, large retailers like Jamba Juice have software that surges employees around lunchtime, and then cuts them shortly thereafter.

When I was coming up on the end of my postdoc, I thought to myself, "The worst case scenario is that I will work at the Walmart at the bottom of the hill." (the one next to the Fry's, for San Diego readers) But I am well-aware that retail is, in its own way, a terrible Wheel of Pain.

If that much is not clear, Mr. Flickinger, the retail consultant puts a little English on the ball at the end of the article:
Mr. Flickinger, the retail consultant, said companies benefited from using many part-timers. “It’s almost like sharecropping — if you have a lot of farmers with small plots of land, they work very hard to produce in that limited amount of land,” he said. “Many part-time workers feel a real competition to work hard during their limited hours because they want to impress managers to give them more hours.”
When you're comparing your workers to sharecroppers, you know that things aren't going so well for workers. Thank goodness that chemistry doesn't make people work part-time. Right? Right?

Wednesday, October 24, 2012

On earnings reports, DuPont, Dow to cut 4,000 jobs

After some optimistic comments, comes the reality of earnings season. From Chemistry World's Andrew Turley:
The chemical industry was hit by news of nearly 4000 planned job cuts, and multiple site closures, yesterday as two iconic firms, DuPont and Dow, announced dramatic restructuring plans alongside their financial results for the third quarter (Q3) of 2012. Sales from continuing operations fell 9% to $7.4 billion in Q3 as a result of weaker than expected demand in the markets for titanium dioxide and photovoltaic materials, said chief executive Ellen Kullman. 
DuPont said it would reduce its global workforce by 1500 (2%) over the next 12–18 months with the aim of saving $450 million (£280 million) in annual costs. The move will cost the company $152 million in 2012. 
[snip] Meanwhile, Dow said it would cut 2400 jobs, representing 5% of its global workforce, and close 20 manufacturing plants, in a bid to shave $500 million off its annual costs over the next two years. Sales at Dow fell 10% – 7% when adjusted for recently sold business activity – to $13.6 billion in Q3, with economic instability in Europe leading to lower prices cited as a key factor.
The DuPont press release does not mention the actual cuts to come, while the Dow press release actually delivers the butcher's bill:
Dow will shut down a high density polyethylene facility in Tessenderlo, Belgium, a sodium borhidrate [CJ's note: sic] plant in Delfzijl, the Netherlands, as well as a number of Performance Materials manufacturing facilities, including: an Automotive Systems Diesel Particulate Filters manufacturing facility in Midland, Michigan; Formulated Systems manufacturing facilities in Ribaforada, Spain, Birch Vale, United Kingdom and Solon, Ohio; and an Epoxy resins facility in Kina Ura, Japan. Additionally, the Company will record an impairment charge related to the write-down of Dow Kokam LLC’s assets, reflecting weak global demand for lithium-ion batteries; and will consolidate certain assets in its Oxygenated Solvents business, as well as shut down a number of other small manufacturing facilities. These actions are expected to take place over the next two years.
While I'd like to take a moment to kick Andrew Liveris in the shins a bit, I just don't have the heart to do that. Suffice it to say that it is broadly confusing to me what is going on in the global economy right now. Things in the US economy seem to be bumping along fine (for example, both consumer sentiment and the ACC's Chemical Activity Barometer are up), Europe is still more or less hurting and Asia seems to be slowing. I have my skepticisms about Paul Hodges and his economic predictions, but his insistence that we live in a world defined by uncertainty and unpredictability rings true to me.

To those people who are going to lose their jobs, best wishes to them, and to all of us.