Tag Archives: Job Losses

Robots will be your colleagues not your replacement: Manpower

FILE PHOTO: A robotic bartender prepares drinks inside a space modul-like structure in Prague, Czech Republic, November 28, 2018. REUTERS/David W Cerny/File Photo

BERLIN (Reuters) – Fears that robots will eliminate your job are unfounded with a growing number of employers planning to increase or maintain headcount as a result of automation, staffing company ManpowerGroup said in a survey published on Friday.

The “Humans Wanted: Robots Need You” report surveyed 19,000 employers in 44 countries and found 69 percent of firms were planning to maintain the size of their workforce while 18 percent wanted to hire more people as a result of automation. That was the highest result in three years.

The report went on to say that 24 percent of the firms that will invest in automation and digital technologies over the next two years plan to add jobs compared to 18 percent of those who are not automating.

Just 9 percent of employers in the annual survey said automation would directly lead to job losses, while 4 percent did not know what the impact would be.

“More and more robots are being added to the workforce, but humans are too,” said Jonas Prising, Chairman & CEO of ManpowerGroup.

“Tech is here to stay and it’s our responsibility as leaders to become Chief Learning Officers and work out how we integrate humans with machines.”

More than 3 million industrial robots will be in use in factories around the world by 2020, according to the International Federation of Robotics.

The Manpower survey found that 84 percent of firms planned to help their workers learn new skills by 2020, compared to just 21 percent in 2011.

The global talent shortage is at a 12-year-high, with many companies struggling to fill jobs, according to Manpower.

In Germany, where unemployment is at a record low, a shortage of talent was the top concern of small-to-mid-sized companies heading into 2019, according to a survey by the BVMW Mittelstand association.

The Manpower survey found IT skills are particularly in demand with 16 percent of companies expecting to hire staff in IT.

In manufacturing and production, where industrial robots are increasingly doing routine tasks, firms expect to hire more people in customer-facing roles that require skills such as communication, leadership, negotiation and adaptability.

Employers in Singapore, Costa Rica, Guatemala and South Africa expected to add the most staff, while firms in Bulgaria, Hungary, Czech Republic, Norway, Slovakia and Romania predicted a decrease in headcount, the survey found.

(Writing by Caroline Copley; Editing by Elaine Hardcastle)

U.S households see spending up, job prospects improving: New York Fed survey

- A shopper walks down an aisle in a Walmart Neighborhood Market in Chicago

WASHINGTON (Reuters) – Consumers expect to boost spending in the months ahead and voiced confidence they are more likely to find a job and less likely to lose one in a strong labor market, the New York Federal Reserve reported Monday in its latest monthly survey of consumer expectations.

Nearly 35 percent of the 1,300 heads of household included in the June poll said they were better off economically than a year go, a record in the four years the survey has been conducted.

The results bolster the current Fed outlook of an economy that continues to generate jobs despite tepid overall growth and some concern about a recent dip in inflation, improving chances the central bank can follow through with plans for a further interest rate increase later this year.

Though household expectations of inflation for the year ahead did dip slightly from the May survey, to 2.5 percent from 2.6 percent, respondents expect strong price increases of 2.8 percent over the coming three years. That’s consistent with the Fed’s current outlook that the recent weakness in inflation will prove temporary.

The survey also bolstered the view of continued strong consumption growth. Half of those polled said they expected to spend at least 3.3 percent more in the coming year, compared to median expected spending growth of 2.6 percent in the May survey. One-year-ahead expected earnings growth increased to 2.5 percent in the June survey from 2.2 percent in May.

Respondents also showed broad faith in the strength of the labor market, with a slight dip to 13.5 percent from 13.6 percent in the perceived probability of losing a job in the next year, and a jump to 59.2 percent from 56.7 percent in the probability of finding employment.

More than a fifth of respondents said they might leave a job voluntarily in the next year, up from 19.4 percent in May. Voluntarily job exits are considered a sign of a strong labor market that offers employees choices.

The online poll is designed to be a representative sample of the U.S. population. The New York Fed did not provide the margin of error for the poll.

 

(Reporting by Howard Schneider; Editing by Andrea Ricci)

 

U.S. employment gains hit seven-month low, labor force shrinks

Hiring Our Heroes event

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. economy added the fewest number of jobs in seven months in April and Americans dropped out of the labor force in droves, signs of weakness that cast doubts on whether the Federal Reserve will raise interest rates before the end of the year.

Nonfarm payrolls increased by 160,000 jobs last month as construction employment barely rose and the retail sector shed jobs, the Labor Department said on Friday. That was the smallest gain since September and below the first-quarter average job growth of 200,000.

Adding to the report’s weak tone, employers added 19,000 fewer jobs in February and March than previously reported. While the unemployment rate held at 5.0 percent that was because people dropped out of the labor force.

“For those who had thought a June rate hike was in play, this was a nail in the coffin. This raises questions about a September rate hike. I would like to think the economy is in a better place at the end of the year,” said Phil Orlando, chief equity market strategist at Federated Investors in New York.

The stepdown in job gains could temper expectations of a strong rebound in economic activity in the second quarter after growth nearly stalled in the first three months of the year.

Economists polled by Reuters had forecast payrolls rising 202,000 last month and the jobless rate unchanged at 5 percent.

The dollar dropped to session lows against the euro and the yen after the report. Prices for U.S. government debt rose, while U.S. stock index futures fell marginally.

Average hourly earnings were the only bright spot in the employment report, rising eight cents or 0.3 percent last month.

That took the year-on-year increase to 2.5 percent from 2.3 percent in March, still below the 3.0 percent advance that economists say is needed for inflation to rise to the Fed’s 2.0 percent target.

RATE HIKE PROBABILITIES DIMINISHING

The U.S. central bank last month offered a fairly upbeat assessment of the labor market, saying that conditions had “improved further.” The Fed raised its benchmark overnight interest rate in December for the first time in nearly a decade. Fed officials have forecast two more rate hikes for this year.

Market-based measures of Fed policy expectations have virtually priced out an interest rate increase at the Fed’s June 14-15 meeting, according to CME Group’s FedWatch. They see a less than 40 percent probability of rate hikes in September and November, with a 48 percent chance at the December meeting.

The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, fell 0.2 percentage point to 62.8 percent. It had increased 0.6 percentage point since dipping to 62.4 percent in September.

The labor force fell by 362,000 as people dropped out in April. The employment-to-population ratio fell to 59.7 percent from a seven-year high of 59.9 percent.

A broad measure of unemployment that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment slipped one-tenth of a percentage point to 9.7 percent last month. The vast private services sector dominated employment gains in April, adding 174,000 jobs. Retail payrolls fell 3,100 after hefty gains in the first quarter, despite sluggish sales.

While information employment was unchanged last month, a Labor Department official said there was no sign that a strike by about 40,000 Verizon workers had impacted the data.

Manufacturing added 4,000 jobs last month after shedding 29,000 in March, the biggest loss for the sector since December 2009.

There were further job losses in mining as the energy sector adjusts to weak profits from a recent prolonged plunge in oil prices. Mining payrolls fell 8,000 last month. Mining employment has decreased by 191,000 jobs since peaking in September 2014, with 75 percent of the losses in support activities.

Gains in construction employment slowed sharply, with the sector adding 1,000 jobs in April, after home building showed some signs of fatigue last month.

(Reporting by Lucia Mutikani; Additional reporting by Richard Leong in New York; Editing by Andrea Ricci)

Major Companies to Cut Significant Amount of Jobs

Major companies, mostly located in the United States, are expecting to cut thousands of jobs within the next few years. These companies include: Whole Foods, Caterpillar, Chesapeake Energy, Hewlett-Packard Co., and Toshiba, along with supermarket giant, Wal-Mart Stores.

Reasons for the cuts have been attributed to a variety of reasons. Whole Foods reported to USA Today that they would be cutting 1,500 jobs within the next two months in order to lower prices for customers. The organic grocery store also announced that they would be trying to find other jobs within the company for those who were laid off.

Caterpillar, the heavy equipment manufacturer, said they would be cutting 10,000 jobs within the next three years. The job cuts come from a lack of projects for the company due to weakness in the energy and mining businesses worldwide, which affects the company greatly because their equipment is usually used for resource extraction and construction.

Another company that has been affected by the energy industry is Chesapeake Energy. Due to the high prices of oil and natural gas, the energy company is having to cut 750 workers, which is 15% of its workforce. Most of the job cuts will be in Oklahoma City, OK, where the company is based.

The technology business has also been affected by the recent world markets. Hewlett-Packard Company (HP) announced earlier this month that they would be cutting 33,300 jobs over the next three years due to falling demand. Another tech giant, Toshiba, also announced today that they would be cutting jobs as well due to a recent account scandal within the company. So far, Toshiba has not announced how many jobs would be cut, but that there would be restructuring within their company.

Even one of the biggest companies in the United States announced today that they would be cutting jobs. Wal-Mart Stores told Reuters that hundreds of people would be laid off at their headquarters in Arkansas. They expect fewer than 500 employees to lose their jobs. The job cuts were announced while the company struggles to shore up its profit margins, which have been weighted down by a $1 billion investment earlier this year to increase the wages of employees. So far this year, the stock for the world’s biggest retailer is down 26%.

CNN Money reported that the U.S. has cut more than 86,000 jobs due to falling oil prices.