Retail Jobs Surge, but Little Action Elsewhere: This Week in Employment
Is there any point in even mentioning the biggest job/economy-related story of the week? We all know by now that the recession ended in 2009, right? Officially, at any rate, if not by Warren Buffett’s more common-sensical standards. And we’re all equally aware that, whether we’re technically in a recession or not, things are still pretty bleak and likely to remain so for some time? Good. So let’s move on to the good stuff.
Frankly, economic distractions aside, it hasn’t been the best week if you’re looking for positive employment news. Sure, we found out that retailers are anticipating a slightly better festive season than last year, prompting a prediction of up to 650,000 temporary jobs during the period this year. And, sure, Macy’s alone is creating as many as 65,000 temporary positions. All of that is decent news, but temporary hiring is, well, temporary—and the example of the Census earlier this year suggests that, in this economy, once temporary jobs have gone, the unemployment rate is likely to go straight back up to where it was prior to the positions.
There was some positive news for the tech sector, where it emerged that spending is estimated to top $3.5 trillion in 2011—and all of that spending does tend to suggest that hiring will follow. But that was tempered by news of cuts in other sectors, as noted on Vault’s Employment Tracker. While the news that Abbott Laboratories is laying off 3,000 workers was the worst cut of the week in terms of pure numbers, it wasn’t the worst signal out there. That honor went to the news that Bank of America is cutting 400 jobs in its global banking and markets division. The reason for that—a slowdown in revenue from trading and advising clients—may well have industry-wide reverberations. And as we’ve learned to our cost over the last couple of years, when the financial industry isn’t making money, the rest of us may well have good reason to be nervous.