Unemployment insurance initial claims up 4000, January 10, 2013, 4 week moving average increased 6750, 18 states increase more than 1000, American Express cutting 5400 jobs
“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012
“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama
“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″
From the US Labor Department January 10, 2013.
“UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT”
“In the week ending January 5, the advance figure for seasonally adjusted initial claims was 371,000, an increase of 4,000 from the previous week’s revised figure of 367,000. The 4-week moving average was 365,750, an increase of 6,750 from the previous week’s revised average of 359,000.”
STATES WITH AN INCREASE OF MORE THAN 1,000
|State||Change||State Supplied Comment|
|MI||+15,107||Layoffs in the manufacturing industry.|
|PA||+12,483||Layoffs in the transportation, construction, food and beverage manufacturing, and metals industries.|
|NJ||+3,436||Layoffs in the educational service industry.|
|MO||+3,057||Layoffs in the transportation and warehousing, and manufacturing industries.|
|IA||+2,804||Increase is a result of processing claims from prior week when offices were closed due to the holiday.|
|NC||+2,300||Layoffs in the machinery, lumber and wood products, transportation and warehousing, automotive repair, service and parking, rubber and plastic products, petroleum, and textile industries.|
|OR||+2,185||Increase is a result of processing claims from prior week when offices were closed due to the holiday.|
|CA||+2,012||Increase is a result of processing claims from prior week when offices were closed due to the holiday.|
|AL||+1,913||Layoffs in the administrative and support service, healthcare and social assistance, construction, and textile industries.|
|TN||+1,589||Layoffs in the administrative and support service, electronics, and construction industries.|
|VT||+1,103||Layoffs in the manufacturing industry.|
|MA||+1,051||Layoffs in the transportation and warehousing industry.|
From CNN Money January 10, 2013.
“American Express to cut 5,400 jobs”
“American Express announced Thursday that it was cutting 5,400 jobs, becoming the latest large financial firm to reduce its headcount.
The company said the largest reductions would come from its travel businesses, which “operate in an industry that is being fundamentally reinvented as a result of the digital revolution.”
“One outcome of this ongoing shift to online is that we can serve a growing customer base with lower staffing levels,” AmEx CEO Kenneth Chenault said in a call with analysts. “Staying ahead of these trends has led us to redesign the model within global business travel and to continue the evolution within cardmember servicing and collections.”
While the cuts will be partially offset by the addition of new positions, American Express said it expects to see its current work force of 63,500 reduced by between 4% and 6% by the end of the year.
“Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources to drive growth,” Chenault said in a statement.
The company said the cuts “will be spread proportionally between the U.S. and international markets and will primarily involve positions that do not directly generate revenue.”
Shares fell about 0.7% in after-hours trading.
The news came as American Express (AXP, Fortune 500) pre-announced of its fourth-quarter results. Excluding severance costs associated with the job cuts and other special expenses, net income came in at $1.2 billion, or $1.09 a share, exceeding the prediction of $1.06 a share from analysts surveyed by Thomson Reuters. Sales were $8.1 billion, in line with expectations.
Elsewhere in the industry, Morgan Stanley (AACXX) plans to eliminate 1,600 jobs in the coming weeks, a source told CNNMoney this week. Last month, Citigroup (C, Fortune 500) announced plans to cut 11,000 jobs.”