Employers in the US cut jobs at the fatest rate in 34 years last month, bringing the unemployment rate to a 15-year high.
Payrolls shrank by 533,000 workers in November, the biggest loss since December 1974 and significantly worse than economists had forecast, according to figures released by the Labor Department. Economists were expecting a decline of 335,000 jobs, according to a Bloomberg survey.
The jobless rate rose to 6.7 per cent, and might break 8% by the end of the year.
http://blogs.wsj.com/economics/2008/12/04/fourth-quarter-layoffs-selection-of-job-cuts-by-major-companies/
And for corporate the things are going to get even worse. The next great financial crisis to hit the corporate world will not be credit cards, revolving credit facilities or China. No, what the world should really be worrying about are pension deficits. According to Magnus, $2tn has been wiped off the values of 401k US pension plans in less than a year. Worse, the PPA ( Pension Protection Act), requires defined benefit pension schemes to be 100 per cent funded by 2011, with funding targets of 92 per cent this year, 94 per cent in 2009 and 96 per cent in 2010. If a company’s below the funding targets they’ll have to make cash contributions to their plans. And should a plan’s funding fall below 80 per cent (the “endangered level”), then the company must make a cash infusion to get to the 80 per cent mark or start cutting retiree benefits. If it falls below 60 per cent it can’t pay out at all. BofA's Dennis COleman estimates that due to the PPA, many companies-including industry stalwarts Exxon Mobil, Johnson & Johnson, IBM (N/R), Proctor & Gamble (N/R) and DuPont-will soon need to begin funding underfunded pensions obligations.
Race to Zero.. Notice how good a job India is doing!! http://s.wsj.net/public/resources/images/P1-AN878C_Rates_NS_20081204202416.gif
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