November’s drop in payroll employment followed declines of 403,000 in September and 320,000 in October, and the U.S. unemployment rate jumped from 6.5 to 6.7 percent. Job losses were widespread among all the industry sectors, the Bureau of Labor Statistics said on Friday.
“Today’s report underscores the urgent need to stabilize financial markets, ensure access to credit and create a positive environment for job creation,” said U.S. Labor Secretary Elaine Chao.
Retail trade industry suffered the worst contraction, shedding 91,000 jobs, followed closely by manufacturing (85,000) and construction (82,000) as the real estate crisis continued to curtail development. The manufacturing sector as a whole has lost a staggering 604,000 jobs in the last 12 months, but the return of 27,000 Boeing Co. machinists from a strike helped stem total manufacturing losses last month.
Financial services sector was rocked by Citigroup’s announcement of more than 50,000 layoffs last month.
More Cuts Projected
November’s data comes days after more unsettling news of employers shedding jobs in early December.
AT&T Inc., the nation’s largest telecommunications company, announced plans to lay off 12,000 employees last week amidst weakening consumer spending and continued revenue decline from traditional landline telephone services.
Most of the layoffs will come from its landline business units, the company said. AT&T has approximately 300,000 employees. The company also announced a $600 million severance expense during the fourth quarter related to the job cuts.
The announcement comes after AT&T posted better-than-expected results in its cellular phone business. Its exclusive contract with Apple Inc. to sell its popular iPhone smartphones in the United States brought the company more than 2.4 million new subscribers in the third quarter. The company also expects rapid customer growth for U-Verse, its high-speed TV and Internet platform similar to Verizon Communications Inc.’s popular FiOS service.
Manufacturing sector is expected to take another hit in December as Wilmington, Del.-based chemical manufacturer DuPont said it would cut around 2,500 jobs, or 4 percent of its total workforce. The cuts will take effect “principally in businesses that support the motor vehicle and construction markets in Western Europe and the United States,” the company said. In its latest earnings guidance, DuPont expects a loss for fourth quarter 2008.
Entertainment giant Viacom Inc. also unveiled plans to restructure its business, which included a decision to lay off 850 people, or roughly 7 percent of all employees, across all divisions.
“We are moving rapidly to adapt to the challenges presented by the current economic environment,” Viacom President and CEO Philippe Dauman said in a company statement. “The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow.”
Earlier last week, financial firms also announced a string of job cuts. State Street Corp., The Carlyle Group, and Jeffries Group announced layoffs totaling 3,000 people. Swiss banking giant Credit Suisse Group announced 5,300 layoffs last Thursday.
