Tech Layoffs Rise More Than National Average

Layoffs at tech companies greatly increased in August, far surpassing the national average for American companies. Among the hardest-hit slices: the computer and electronics products sector. Business these staged 20 major layoffs during the month, double the rate from a year ago. Each downsizing averaged 72 employees.

The national unemployment rate fell to 8.1 percent in August, down from 9.1 percent a year ago, even though the number of companies chopping their labor force grew, according to figures from the Bureau of Labor Statistics.

Meanwhile, the professional and technical services sector saw 31 major layoffs in August, a 29 percent increase over August 2011. And while that wasn’t as steep as the increase in computers and electronic products, the number of employees per layoff here was higher, reaching an average of 84 workers per cut.

The national average, based on non-seasonally adjusted numbers, climbed 10.6 percent in August, representing layoffs at 1,063 companies. The overall number of employees affected averaged nearly 98 per cut.

Nipping and Tucking

The increase among computer and electronics products companies comes as no surprise, given the industry’s 0.03 percent decline in August job growth. The surprise in Friday’s report was the hit taken by the professional and technical services industry. In August, it posted a 3.2 percent increase in jobs over the year ago period.

When August’s jobs report was released, Moody’s Economist Bodhisattva Ganguli noted that there were signs that the services industry was beginning to replace jobs it had cut during the recession. However, the newest layoff figures imply that some selective pruning is underway.

After all, we’ve heard before that many companies remain in hiring mode, even as they’re letting hundreds or thousands of people go.

Comments

  1. BY Cicuta says:

    Message to California Senators Boxer and Feinstein
    Stop Foreign Aid!!!
    One of the messages I have been communicating to the American people is: What is going to take to make Senators understand that money does not buy loyalty or friendship? That loyalty and friendship has to be earned and not bought; however, politicians are so ignorant that still believe that by giving “Foreign Aid” we can buy those countries into being our friends and allies. For more than half a century politicians have been meddling into foreign affairs buying dictators all over the world at the exchange of oil and friendship; but now everything has change and those countries such as Afghanistan, Pakistan, Egypt, Libya, and many others are sending a message to the world that they don’t want anything to do with the USA; in spite of that Congress is still sending “tax payers money” to those countries braking in the process our “Constitution”. What is going to take for ignorant Senators to understand that our economy is far more important than to buy friendship? Our deficit is far more than 16 trillion dollars and still Senators do not understand that the USA is sinking fast and has reached the point of diminishing returns.
    Stop sending tax payer’s money oversea and create jobs, pay the debt we have thanks to Senator’s stupidity, balance the budget, create a better educational system, and stop immigration of H1-B and L1 visas so our people can have a job. As it is we are losing jobs by the thousands every month and you people are approving more visas…are you that stupid? I guess so…

  2. BY Wizgod says:

    Export them all. all of washington.

  3. BY Cicuta says:

    And this is only the beginning…Next year the USA economy will go on a free fall…Mark my words!

  4. BY Billius says:

    It’s amusing to hear the democratic incumbent talking about job creation and penalizing companies that export jobs when, from my experience, the DEMS currently are one of the worst for replacing American IT workers by IMPORTING their labor (making around $4K per worker to issue a work visa) from many other countries through well known US corporations who manufacture other items for the US government.

Post a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>