Friday, December 5, 2008
US Employers Shed 533K Jobs In November 2008
This is going to get more ugly before it gets better.
The credit market collapse has put companies in a defensive mode. They feel that it is time to make their balance sheets look more solid. They are more risk averse in the process.
Some of the markets that had three or more competitors are seeing of of these competitors fall by the wayside (ie: Circuit City and CompUSA). Where as previously they were building locations as a means of keeping up with their competitors; the market soon showed that it is not able to bear the presence of these multiple competitors. When spending slowed as consumers scaled back on their use of credit - these competitors that were already ailing - received the death blow. The employees that were working because of the expansion, now find themselves out of work.
Employers Shed 533,000 Jobs In November
My prediction: This number is going up to 8.9% in 2009 before it starts going down.