December job cuts fall to lowest in two years

A woman looks at job postings at New York State Department. Job cuts by US employers in December last year fell to their lowest level since the recession began. File Photo: AP
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Job cuts by US employers in December last year fell to their lowest level since the recession began in 2007, offering a hope that the job market will improve in the current year, but 2009 saw the heaviest downsizing with a total of over 1.28 million layoffs, a report said on Thursday.

Employers announced plans to eliminate 45,094 jobs during December 2009, 73 per cent down from the 166,348 job cuts recorded the same month a year ago. The December 2009 total was the lowest since December 2007, city-based global outplacement consultancy Challenger, Gray & Christmas said.

However, with a total of 12,88,030 layoffs in 2009, the year saw the heaviest downsizing since 2002. The 2009 job cuts were 5.3 per cent higher than the 12,23,993 announced in 2008. Industrial goods, automotive, government/non-profit and apparel sector saw the maximum number of job cuts last year.

“It definitely was a bi-polar year when it came to downsizing. In the first half of 2009, the economy was reeling from the ongoing housing market collapse, bank failures and the further deterioration of the country’s manufacturing base; the automotive industry in particular,” CEO of Challenger Gray & Christmas, John Challenger said.

He added that during the second or third quarter, “we turned a corner and now as we begin 2010, there are promising signs of continued improvement”.

The pace of downsizing fell by 56 per cent in the second half of 2009 as compared to cuts announced between January and June. Among the promising signs were decreased job cuts in the industries hit hardest by the recession.

Job cuts in the automotive industry, which saw the heaviest downsizing of the year with 1,74,192 total cuts, fell 54 per cent in the second half of the year.

The government and non-profit sector was hit hard by falling tax revenue and many local and state governments still find their budgets in the red. However, the second largest job-cut sector experienced a 33 per cent decline in layoffs over the last six months.

Job cuts in the industrial goods manufacturing sector and retail too witnessed huge decline in July-December 2009 as compared to the first six months of the year.

Challenger said decline in job cuts may have resulted from the government’s stimulus activities, increased confidence among business leaders, cost-savings through wage freezes or reductions and involuntary furloughs.

“The recovery from this recession will undoubtedly be slow. The slowdown in job cuts is just half the battle. The next step is increased hiring, which is always the slowest part of the bust and boom cycle, as cautious employers are reluctant to add too many workers too soon for fear of a recessionary relapse,” Challenger said.

It would take several months to re-absorb the nearly 8.2 million workers who became unemployed.

“It could be another year or more before job creation is strong enough to trigger a significant decline in the unemployment rate,” the report said.

Through 2009, US employers announced plans to hire for 2,72,573 jobs, lead by the retail and government/non profit sectors.

Source:http://beta.thehindu.com/business/Economy/article76876.ece

How to Work a Holiday Party

The season’s festivities include opportunities to advance your career
Published: December 20, 2009
By John Challenger

If you get an invitation to a company holiday party, accept it! Holiday parties are not just about celebrating good fortune. They are a way for companies to show employees how much their hard work is appreciated. It is also the time for employees to get involved in their company on a personal level. Those who know how to ‘work the party room’ could seriously boost their career potential.

Holiday parties outside of work also offer opportunities to advance your career or your job search. You learn about jobs by talking to people. In a relaxed social atmosphere you can meet the most important job-search requirement – making yourself liked – and gain valuable rapport with prospective employers. If your spouse has a job where couples are invited to social events, you should always attend. New vistas may open up as a result.

may not be feeling in a party mood if you are unemployed, but you should recognize that accepting invitations is one of the best ways to turn your situation around. Social get-togethers offer you a marvelous chance to make new contacts. You don’t have to ‘talk shop’ at the party, but you can set up appointments in the coming weeks, which will give you a chance to sit down and have a more serious discussion.

 

Companies Lay Off Celebrations

While the economy is beginning to show signs of possible recovery, many companies will remain cautious when it comes to spending. Evidence of this continued frugality is seen in a new survey showing that fewer companies are planning holiday parties this year and, among those that are, nearly one in three is budgeting less for the event.

In its annual survey on holiday parties, global outplacement consultancy Challenger, Gray & Christmas, Inc. found that 62 percent of companies are planning holiday parties this year, down from 77 percent a year ago. In 2007, nine out of ten companies were planning holiday parties. The survey was conducted among approximately 100 human resource executives in a wide variety of industries nationwide.

The strength of the recovery, or whether we are even in recovery, is still unclear. Companies are postponing major investments, hiring initiatives, and many other expenses, including holiday parties. For companies that have recently announced layoffs or other significant cost-cutting measures, such as wage freezes, it would be difficult to justify, let alone get in the mood for a holiday party.

Among companies that are planning holiday parties, the most popular theme is likely to be low profile, low budget. About 64 percent of companies are spending the same as last year and 28.5 percent are spending less – 10 percent to 20 percent less, on average – than they did a year ago.

More than half of the employers holding parties are reportedly having it on a workday or near the end of a workday, while nearly two-thirds are inviting employees only. Fifty-six percent are using a caterer or outside service compared to 69 percent last year.

For employers, there is significant risk associated with hosting such events, especially when they include alcohol. There are also legal risks associated with the increased potential for sexual harassment claims.

Use It, But Don’t Lose It

Although a holiday party could be filled with pitfalls, such as overimbibing or getting a little too flirty, it also offers great opportunities, like socializing with senior executives you might never interact with at the office.

For employees, now is not the time to draw attention to oneself with embarrassing conduct at the holiday party, particularly at a time when everyone’s job is at risk of being downsized. However, employees who simply stand in the corner in an effort to stay off the radar are missing the boat.

Make an effort to break away from your comfort zone and introduce yourself to those who might make a difference in your career.

Source:http://www.jobjournal.com/article_full_text.asp?artid=2846

Social Networking as a Job-Search Tool Tweet with Care

Published: December 13, 2009
By John Challenger

As the nation’s jobseekers attempt to find any advantage in a tight job market, more and more are flocking to social-networking sites like Twitter, LinkedIn and Facebook to stand out from the crowd. However, while these sites have the potential to revolutionize the job search, they could also backfire on those who rely too heavily on them or misuse them, warns one employment authority. The job search has changed radically over the last two decades with the advent of electronic mail, the Internet, social networking, smart phones, etc. It is important to remember, though, that all of these technologies simply enhance the job search; they will never replace the face-to-face connections that are critical to getting hired.

Essential for an Effective Search

That being said, we feel that these new networking tools are essential and now advise all of the jobseekers going through our outplacement program at Challenger, Gray & Christmas to open LinkedIn accounts and to consider other services such as Facebook and Twitter. Of course, many of those going through our program are already among the millions who have signed up on social-networking sites in recent years.

The number of Americans engaged in networking online has grown exponentially in the last five years. It is now estimated that 51 percent of adult Web users in the US utilize social sites such as Facebook or LinkedIn, according to a recent survey by Forrester Research – more than double the 25 percent who reported using networking sites in 2007.

One reason the number of social networkers is on the rise is due to increased interest among business professionals. In fact, the most rapidly growing age group represented on Facebook is the 35-and-older population.

A study from the Pew Internet & American Life Project reveals that 19 percent of Internet users are sharing personal and business updates on Twitter or other status-update services, up from 11 percent earlier this year.

Schmooze with Ease

Social networking is an easy way for jobseekers to build their network by reaching out to former colleagues and classmates, as well as fellow alumni and industry professionals. Jobseekers can then use their networks to uncover available positions and to establish relationships with hiring managers or contacts who can give them a recommendation.

Just a few years ago, job hunters’ only search tools were newspapers and cold calls. Now, technology serves to instantly connect them with employers, recruiters and job leads.

Recruiters Becoming Regulars

Jobseekers are not the only ones taking advantage of these new tools. Employers are also jumping on the social-networking bandwagon. A recent survey by Jobvite found that 80 percent of companies who responded use or are planning to use social networking sites to fill vacant positions. While LinkedIn is still the most popular site used by employers, Facebook and Twitter are gaining ground. The use of Facebook has grown from 36 percent of recruiters in 2008 to 59 percent in 2009, while Twitter is currently being used by 42 percent of recruiters.

Social networking should be used cautiously, however. As these sites become increasingly intertwined, it will becomes easier and easier for potential employers to access the more personal aspects of jobseekers’ lives.

Status updates on Facebook can now be sent automatically to Twitter followers. A similar cross-service update was recently initiated between Twitter and LinkedIn. The complication is that people tend to use these services in different ways, and these ways are not always compatible with the job search.

In fact, a jobseeker is twice as likely to be eliminated from consideration than to be hired based on his or her social networking site content, according to a survey of human resources professionals by Careerbuilder.com. In the survey, 35 percent of respondents said they ceased consideration of an applicant due to a social networking gaffe, with reasons ranging from provocative/inappropriate photographs and information, to candidates having poor communication skills. Only 18 percent said they offered a position to a prospective employee due to social networking research, attributing that decision to seeing the candidate as a good fit for the company or the candidate’s site conveying a professional image.

Perhaps the most dangerous aspect of the Internet is the permanency and pervasiveness of any and all information that finds its way there. Comments on a friend’s blog, reviews on consumer sites and inside jokes made for a private audience on a social networking site’s public group page are all available at the click of a mouse to potential employers.

The other danger is that many jobseekers tend to let the Internet become their primary, if not sole, job-search tool. It is too easy simply to sit in front of one’s computer all day, scanning job boards and expanding one’s virtual network through LinkedIn. However, these online connections are superficial at best. It takes a lot more work to turn them into meaningful relationships that can advance your job search. In the end, face-to-face meetings are still the most effective relationship-building tool available.

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5 Ways to Use Twitter in Your Job Search

1. Follow and read job-search experts. The number of excellent ideas, tips, leads, news items, informative articles, and best practices going by all day long is amazing. Use Twellow’s directory for Employment > Career > Job Search to find excellent people to follow. You’ll find outstanding advice that applies to your situation . . . Guaranteed.

2. Search for posted positions. Use Twitter’s search function to look for #jobs, or TwitterJobSearch to find a wealth of open positions that aren’t necessarily posted on job boards or company sites. Also search #splits for positions that recruiters use to split open searches with other recruiters. New positions are posted with excellent companies, large and small, every minute of every day. Get them in real time, early, and often.

3. Follow and read people in your field or industry. Industry chatter is incredible. News items, rumors, and trends get discussed daily. You can become much better versed in your field by ‘listening’. It can provide you with new and valuable information that can make you a better candidate in the interview process. Use Twellow to find appropriate people to follow.

4. Engage! Get in conversations with people. Ask questions, offer help, ReTweet (re-post) good information you see. Make sure to proofread everything you Tweet, and keep everything professional. Offering opinions about politics (unless you’re looking for a job in politics), or talking about your weekend at the bar will alienate half the people you want to connect to. Don’t sound discouraged or be a spreader of bad news. Keep your conversations focused on your area of expertise, or job search topics, and keep them positive.

5. Connect with people at your target companies. Many companies have an official presence on Twitter and post positions. There are also obviously many people on Twitter on their own that work at companies you many have an interest in. Professionally, ask questions, ask for referrals, offer information, and seek advice.

Source: http://www.jobjournal.com/article_full_text.asp?artid=2840