Higher fuel prices are causing real pain nationwide, as transportation and consumer goods sectors saw the most layoffs in February, according to the most recent survey by outplacement firm Challenger, Gray & Christmas.
Overall, the pace of downsizing is up 18 percent over last year, with 105,214 job cuts announced through the first two months, compared to 89,221 during the same period in 2011. Last year, job cuts in the first two months were dominated by the government, but that has trailed off significantly. This year consumer products firms are leading all others in job cuts, followed by transportation companies. They account for 32,155 job cuts nationwide or 30.6 percent of the year-to-date total.
“It is too soon to say that the government sector is out of the woods when it comes to layoffs. However, recent gains in employment across many states are undoubtedly helping to boost payroll tax revenue. Furthermore, many states and local municipalities have already cut to the bone and may have little room for additional cuts. The biggest threat for increased government job cuts remains the federal government, which is still under pressure to cut deficits and bring spending under control,” said John A. Challenger, CEO of Challenger, Gray & Christmas.
“While, the decline in government job cuts is certainly promising, surging job cuts in consumer products and transportation are particularly worrisome. These are strong indicators of economic health, especially as it relates to consumer spending. Both sectors are undoubtedly feeling the impact of rising fuel prices as heavy users of fuel, but also from their dependency on consumers, who are being forced to spend more on gasoline and less on the products and services provided by these firms.”
That vacation getaway is not going to get cheaper anytime soon.
The FAA said today airfares are likely to remain high for the rest of the decade as airline capacity shrinks. Officials said travelers won’t get much relief until airlines start getting more competition, which is years away.
Want some more good news? The FAA predicts that more airline mergers and consolidation will shrink the number of cities served and the number of flights available in the nation’s air travel network.
The US Senate could vote as early as today on two amendments affecting the the Keystone XL pipeline, although reports are that they will have a hard time attracting the 60 votes necessary for passage.
One amendment, from John Hoeven, R-N.D., would allow Congress to approve the project by itself, cutting the President out of the process. But that bill would need Obama’s signature.
Ron Wyden, D-Ore., proposed a ban on exports of oil from the pipeline as well as refined products made from the oil. He said the booming U.S. oil and gas production gave the United States a competitive edge that would be lost if exports were allowed.
The local stake in Keystone XL is significant. Although, the $7 billion pipeline is being built to bring tar sands oil down from Alberta, and pick up oil in North Dakota on its way down, it will also expand the capacity of oil flowing from the bottlenecked Cushing hub to the Texas refineries. The cost of that bottleneck is about $20 per barrel for Kansas producers. The gain is going to Midwest refiners who are enjoying significant profits as a result.
Ashley Cozine, president of Broadway Mortuary, was scheduled to testify today in front of the House Committee on Veterans’ Affairs Subcommittee on Disability Assistance and Memorial Affairs.
Cozine, who is on the National Funeral Directors Association Executive Board, will express the group’s strong support for the “Veterans Missing in America Act of 2011.” Cozine is expected to discuss the results of a recent survey of NFDA members about their experiences with veterans’ cemeteries and the Department of Veterans’ Affairs.
“Overall, our members were highly complementary of the state of our veterans cemeteries. We received an almost unanimous response that our nation’s national cemeteries operate efficiently, effectively, and with much compassion for those being buried there as well as their families,” he said in written testimony.