Mass Layoffs Summary from DOL

Related to the below data, if you are in transition, you have to think like an independent contractor.

The way you secure work today is by establishing yourself as an expert and developing opportunities to solve problems in your area of expertise with other folks in the same situation. Crowdsolve. That is the bottom-line.

Make sure you understand Social Media tools as well; build your brand via your Google Profile, a blog, Twitter, LinkedIn and tools like VisualCV.

If you say none of these things are for you or don't relate to you, you will struggle in the current highly competitive climate.

MASS LAYOFFS -- AUGUST 2009


Employers took 2,690 mass layoff actions in August that resulted in the separation of 259,307 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. Each action involved at least 50 persons from a single employer. The number of mass layoff events in August increased by 533 from the prior month, and the number of associated initial claims increased by 52,516. Over the year, the number of mass layoff events increased by 803, and associated initial claims increased by 70,356. Year-to-date mass layoff events (21,184) and initial claims (2,162,202) both recorded program highs through August. In August, 900 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 93,892 initial claims. Over the month, the number of manufacturing events increased by 279, and associated initial claims increased by 21,626. (See table 1.)

During the 21 months from December 2007 through August 2009, the total number of mass layoff events (seasonally adjusted) was 44,669, and the number of initial claims filed (seasonally adjusted) in those events was 4,556,636. (December 2007 was the start of a recession as designated by the National Bureau of Economic Research.)



The national unemployment rate was 9.7 percent in August 2009, seasonally adjusted, up from 9.4 per-cent the prior month and up from 6.2 percent a year earlier. In August, total nonfarm payroll employment decreased by 216,000 over the month and by 5,830,000 from a year earlier.



Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in August was 1,428 on a not seasonally adjusted basis; the number of associated initial claims was 125,024. (See table 2.) Average weekly layoff events rose from 285 in August 2008 to 357 in August 2009, and average weekly initial claims increased from 28,000 to 31,256. Seven of the 19 major industry sectors reported program highs in terms of average weekly initial claimants for the month of August: construction; wholesale trade; retail trade; management of companies and enterprises; educational services; arts, entertainment, and recreation; and accommodation and food services. (Average weekly analysis mitigates the effect of differing lengths of months. See the Technical Note.)

The manufacturing sector accounted for 31 percent of all mass layoff events and 33 percent of initial claims filed in August 2009. A year earlier, manufacturing made up 29 percent of events and 37 percent of initial claims. Within manufacturing, transportation equipment comprised the largest number of aver-age weekly claims (2,269) despite experiencing the largest decrease in average weekly initial claims over the year (-1,688) among three-digit NAICS industries. (See table 3.) The administrative and waste services sector accounted for 14 percent of mass layoff events and 12 percent of initial claims, down from 15 and 14 percent, respectively, the previous August. Construction accounted for 11 percent of events and 10 percent of initial claims, an increase from 10 percent of events and 7 percent of claims in August 2008.

Of the 10 detailed industries with the largest number of mass layoff initial claims, 3 reached a series high for August: motorcycle, bicycle, and parts manufacturing; warehouse clubs and supercenters; and casino hotels. The industry with the largest number of initial claims was temporary help services (6,721). (See table A.)


Table A. Industries with the largest number of mass layoff initial claims in August 2009

Geographic Distribution (Not Seasonally Adjusted)

Among the 4 census regions, the West registered the highest number of initial claims in August due to mass layoffs (36,897), followed by the Midwest (32,197) and the South (29,486). (See table 5.) Average weekly initial claims associated with mass layoffs increased over the year in 3 of the 4 regions, with the Northeast experiencing the largest increase (+2,064). In 2009, the Northeast reported its highest August level of average weekly initial claims (6,611) in program history.

Of the 9 geographic divisions, the Pacific (30,781) had the highest number of initial claims due to mass layoffs in August, followed by the East North Central (25,962) and the Middle Atlantic (23,491). (See table 5.) Seven of the 9 divisions experienced over-the-year increases in average weekly initial claims, led by the Middle Atlantic (+1,786). This year, the Middle Atlantic, Mountain, and South Atlantic divisions reached program highs for August in terms of average weekly initial claims.

California recorded the highest number of average weekly initial claims in August, with 6,521, even though it had the largest over-the-year decrease in average weekly claims (-704). The over-the-year decrease was largely due to a drop in claims from the administrative and support services industry. The states with the next highest number of average weekly initial claims were New York (2,851), Pennsylvania (2,481), and Florida (1,949). Thirty states and the District of Columbia experienced over-the-year increases in average weekly initial claims, led by Pennsylvania, New York, and Illinois. In 2009, eight states reached program highs in average weekly initial claims for the month of August: Alaska, Arizona, Hawaii, Illinois, Nevada, New York, Rhode Island, and Wisconsin.

Note

The monthly data series in this release cover mass layoffs of 50 or more workers beginning in a given month, regardless of the duration of the layoffs. For private nonfarm establishments, information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs"). The quarterly release provides more inform-at ion on the industry classification and location of the establishment and on the demographics of the laid-off workers. Because monthly figures include short-term layoffs of 30 days or less, the sum of the figures for the 3 months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. (See table 4.) See the Technical Note for more detailed definitions.

_____________
Mass Layoffs in September 2009 is scheduled to be released on Thursday, October 22, 2009, at 10:00 a.m. (EDT).

Metropolitan area over-the-year unemployment rate increases, August 2009

For the eighth consecutive month, all of the nation's 372 metropolitan areas had over-the-year unemployment rate increases. The largest jobless rate increase from August 2008 to August 2009 was reported in Detroit-Warren-Livonia, Michigan (+7.9 percentage points), followed by Muskegon-Norton Shores, Michigan (+7.0 points).

Link to Civilian labor force and unemployment by state and metropolitan area

For more, visit http://www.bls.gov/
Related News: New Unemployment Claims Rise Unexpectedly to 551,000

ScamWays - Keep Your Money in Your Pocket

While in Atlanta on business this week, I mused with Bill Frech and Steve Jandrell of CandidAdvisors (candidadvisors.com - disclosure - I am also a member of their consulting team), that I had seen a repetitive bit of SPAM on Twitter announcing "Make $180 a day the easy way! I can show you how!" and how tired and frustrated I was that these leeches continue to prey on the recently downsized.

The too sad truth is that many recently downsized, severanced, gotta' roll my 401k over transitioned employees in this very tight job market are perfect targets for thieves, scammers and the pitiful, dishonest, manipulative bottom-feeders of the Web/Franchise/Affiliate/Whatever Marketing world.

Am I being harsh on these Marketers? Yes, yes I am, and I make no apologies.

I have run two businesses folks, and it's a wonderful thing to create a vision, a quality standard, a deliverable, and a customer base that trusts you. It takes work, focus, and a whole bunch of other stuff, but what it does not take is giving a stranger $x dollars to show you how they made millions with some passive Twitter/Facebook/Pyramid party.

The likelihood of your retiring on your yacht as a result of your $x dollar investment is equal to that emailing Dr/Barrister/Representative from Nairobi/Nigeria/Wherever who wants to send you $4.6 million from a long lost relative if only you'll pay the handling fees out of the initial (bad) check they send you. It ain't gonna' happen.

Please understand as well, that many of these folks who look so nice, have such nice bios, have pictures of their kids as their Twitter Avatars are robots - automated feeds owned by one person with many, many "spoof" accounts made up to fit your fantasy - your demographic profile - of what a trusted person looks and sounds like.

If I can tell you one thing, it is Please invest your time in your job search in investing in YOURSELF.

At the end of this month at his annual appreciation dinner, my pal Paul Zaio is having a speaker from the FBI present a talk on security and scams. Here's a bit from the FBI's website on this subject - specifically for Job-Seekers:

Here are a few of the most common work-at-home scams.

• Advance-fee: Starting a home-based business is easy! Just invest a few hundred dollars in inventory, set-up, and training materials, they say. Of course, if and when the materials do come, they are totally worthless…and you’re stuck with the bill.
• Counterfeit check-facilitated "mystery shopper:" You’re sent a hefty check and asked to deposit it into your bank account, then withdraw funds to shop and check out the service of local stores and wire transfer companies. You keep a small amount of the money for your “work,” but then, as instructed, mail or wire the rest to your “employer.” Sound good? One problem: the initial check was phony, and by the time your bank notifies you, your money is long gone and you’re on the hook for the counterfeit check.
• Pyramid schemes: You’re hired as a “distributor” and shell out big bucks for promotional materials and product inventories with little value (like get-rich quick pamphlets). You’re promised money for recruiting more distributors, so you talk friends and family into participating. The scheme grows exponentially but then falls apart—the only ones who make a profit are the criminals who started it.
• Unknowing involvement in criminal activity: Criminals—often located overseas—sometimes use unwitting victims to advance their operations, steal and launder money, and maintain anonymity. For example, they may “hire" you as a U.S.-based agent to receive and re-ship checks, merchandise, and solicitations to other potential victims…without you realizing it’s all a ruse that leaves no trail back to the crooks.

What can you do to avoid being scammed? We recommend you practice safe surfing by taking the following steps:

• THINK TWICE about telling all on your online résumé. Do you really need to provide detailed personal information? Consider posting your résumé more anonymously…with an e-mail address as your primary contact point.
• NEVER provide a potential employer with your bank account or credit card information, a scan of your driver’s license or other ID, or a detailed physical description of yourself. That’s just asking for trouble.
• NEVER pay upfront for any job opportunity (they’re supposed to be paying you!) and never forward, transfer, or wire money to a prospective employer.
• BE WARY of job listings with misspellings, grammatical mistakes, and terms such as “money transfers,” “wiring funds,” “package-forwarding,” and “import/export specialist.” Those are big clues that something is amiss.

Resources:

Illinois Secretary of State - Get Rich Quick Employment Scams

FBI: Cybertheft Division

Lookstogoodtobetrue.com

Taking Financial Stock During Career Transition: Part I of II

Recently, my friend Paul Zaio and I were discussing the financial impact of job loss and career transition, and I asked Paul what the number one piece of advice he would give

to a professional in transition. Well, Paul has ten points of advice that we'll cover in this two-part series, and I hope Paul will contribute more often.

A little about Paul: Paul J. Zaio, CFS is a 17-year professional in the financial industry. He specializes in working with those who want to protect their principal and ensure that their money lasts a lifetime. He resides in Mount Pleasant, S.C., is a member of the LPL Directors Club, and teaches financial education at universities and corporations, and is a genuinely nice guy.





10 Financial Questions & Answers for Job Changers - Part 1 - One through Six

Getting you started on the next chapter of your life.

What’s the purpose of this blog posting?

Changing careers is a decision that deserves almost as much attention as starting a family, buying a home or retirement. Career changes can have a profound effect on both your finances and your lifestyle. That’s why it’s so important to approach a job change with three things: knowledge, goals, and a plan.

• Knowledge. In an era of forms and paperwork, changing jobs has become increasingly complex. There are many available options in regards to compensation and benefits, but many pitfalls as well. Knowledge of these is crucial to ensure getting the most out of both your job and future retirement.

• Goals. Changing jobs is not just about a new place of employment. It’s about living comfortably and well, about fulfilling your dreams and building a legacy. The successful job hunter sets goals that are designed to fulfill these objectives.

• Plan. Application of knowledge and reaching goals means having a plan. This report is designed to be the first step in creating that plan.

Below are ten of the most common and important questions you can ask regarding a job change – specifically in regards to how it will affect your retirement savings.

The accompanying questions are designed to be quick, helpful references to you as you begin readying yourself for new employment.

What do I do with it?

Some will use this as a handy reference from which they can always draw. Still others may use this as a kind of jumping off point – once knowing the kinds of questions to ask, they can then begin researching the answers with greater attention and thoroughness.

Finally, many people find that subjects such as 401(k)’s and IRA rollovers are easiest to manage with the help of an expert financial professional, someone who can advise them on everything from the proper investments to retirement planning to managing their existing assets. The choices are limited only by your own imagination.

A quick glossary of terms:

IRA – An Individual Retirement Account is a retirement plan that provides tax advantages for retirement savings. There are several different types, that may be either employer or self-provided.

401(k) – A retirement plan in which an employee chooses to have a portion of his wages deferred directly into a 401(k) account. The money in this account is usually tax-deferred, and most employers will provide a number of investment options that provide an opportunity for the employee to augment his savings.

Roll-over – A tax-free reinvestment or transfer from one retirement plan to another. For example, to transfer assets from a 401(k) to an IRA. Many employees, upon changing jobs, transfer the money from their previous employer’s retirement account to one provided by their new employer.


10 Questions & Answers for Job Changers - Part 1 Questions One through Six

1) What financial preparations should I make before changing my job or if I feel a layoff is imminent?

1. Stay up-to-date. Even if you aren’t actively seeking new employment, it pays to stay on top of your resume and talents. It’s the best way to both seize a sudden opportunity, and ensure your ability to bounce back swiftly should you suddenly need new employment.

2. Review vesting schedules. Double-check your retirement plans at your current job. Are you vested? If not, how much longer before you are? How much will the benefit be? This ensures that you leave your job at the right time – in other words, not a few months before you become fully vested. Knowing the right time to change jobs can guard you from the perils of a hasty decision – and potentially save you thousands of dollars.

3. Build a rainy-day account. Having cash set aside to help through your transition (no matter how smooth that transition may be) is a good idea, since you may go for sometime without a paycheck. In addition, that extra margin of safety can be a lifeline should your job be unexpectedly downsized. The last thing you want to do is find yourself unprepared and have to rely on high-interest credit cards to keep you afloat.

4. Educate yourself on finances. This report is a good first step, but one of the best things a job-changer (or pre-retiree) can do is continually educate themselves on finances. For example, research the best options for your IRA. Many people make the mistake of cashing out of their retirement plan when they leave their job. This creates a significant tax burden, and really sets your retirement savings back. It’s also unnecessary. When you move your money to an IRA, you control when and how much you take out because you now have direct ownership. It will also allow you to continue delaying taxes. Learning simple (but essential) facts like these are the best investments.

2) What about early retirement? How do I know if that’s an option?

The advantages of an early retirement are obvious. However, the financial challenges are significant, and should be carefully considered when pondering early retirement. The earlier you retire means the longer you must live off an income that does not come from a steady paycheck. Social Security is helpful but often not enough to provide the desired lifestyle. Early retirement means increased reliance on pensions and retirement savings. Thus, the only way to know if early retirement is right for you is to take a long, hard look at the numbers. Is your portfolio large enough to provide for 15, 20, 30 years of unemployment?

A person’s needs will vary, but do you know what your needs are? How much will your dreams cost? To find out, your best bet is to run a retirement budget alongside a tax-and-income projection with the help of a financial professional.

3) When can I start withdrawing money from my IRA?

The normal age at which you can begin distributions is 59 ½.

4) How do I handle a severance packages?

First you must decide how to receive your severance package, should you be offered a choice. If you would like to immediately invest your money, taking a lump sum is advisable. However, because severance pay is usually taxable, spreading out your package into multiple payouts make taxation easier to handle.

Balancing immediate needs versus your overall goals is also important. Paying bills or eliminating debt may be a necessity when receiving your severance, however it’s never a good idea to spend the entire amount. Allocate the minimum you need into your checking account, and the rest into conservative investments that will give you a higher return than a simple checking account. This balance will help you both use and grow your money should you seek a different job.

5) What are my options for the money that is in my 401(k) or other pension?

Usually there are four broad choices, each with different advantages and disadvantages:

• A. Leave it invested in what the company offers
• B. Annuitize and receive an income for life
• C. Withdraw the account balance, potentially pay a 10%penalty on top of taxes, and then invest the funds
• D. Roll over to an IRA or other pension fund, paying no penalty, and continue to defer the income tax.

6) Why should I consider a rollover to an IRA?

An IRA offers the possibility of higher returns and increasing income potential. The account can be rolled over tax-deferred to a surviving spouse with the remaining balance distributed to beneficiaries at the death of the spouse.

End of Part 1. Part 2 Monday June 21st. Have a question for Paul? Leave a comment and he'll respond and as always, our thanks.

To learn more or contact Paul Zaio:

Paul Zaio, CFS, RIS
LPL Registered Principal / LPL Branch Manager

Securities offered through LPL Financial
A Registered Investment Advisor, Member FINRA/SIPC

1156 Bowman Road, Ste 200—Mount Pleasant, SC 29464
Phone: 843-416-1144
Toll free: 888-277-0095
http://www.lpl.com/paul.zaio


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