Economic forecasters see more job cuts

Published: Wednesday | January 28, 2009


WASHINGTON (AP):

It is shaping up to be another lousy year for American workers, with more companies expecting to cut payrolls in the months ahead.

That's part of the latest outlook from forecasters in a survey released Monday by the National Association for Business Economics that depicts the worst business conditions in the United States since the report's inception in 1982.

Thirty-nine per cent predicted job reductions through attrition or "significant" layoffs over the next six months, up from 32 per cent in the previous survey in October. Around 45 per cent in the current survey anticipated no change in hiring plans.

The recession, which started in December 2007, and is expected to stretch into this year, has been a job killer. The economy lost 2.6 million jobs last year, the most since 1945. The unemployment rate jumped to 7.2 per cent in December, the highest in 16 years, and is expected to keep climbing.

Thousands more jobs cuts were announced Monday. Pharmaceutical giant Pfizer Inc, which is buying rival drugmaker Wyeth in a $68-billion deal, and Sprint Nextel Corp, the country's third-largest wireless provider, said they each will slash 8,000 jobs.