Well-paid professionals like lawyers, accountants and architects are joining the rapidly expanding unemployment rolls in New York City, as the effects of the financial crisis have spread beyond Wall Street not only to other white-collar industries but also to the construction and retail trades, a new report shows. The number of white-collar workers outside the financial industry receiving... [more]
Well-paid professionals like lawyers, accountants and architects are joining the rapidly expanding unemployment rolls in New York City, as the effects of the financial crisis have spread beyond Wall Street not only to other white-collar industries but also to the construction and retail trades, a new report shows.
The number of white-collar workers outside the financial industry receiving unemployment checks was up by more than 40 percent in October from the same month last year, and the number of college graduates collecting benefits was up by 50 percent, according to the report by the Fiscal Policy Institute, a nonprofit research group.
“Unemployment is starting to shoot up in New York City, and it’s affecting a spectrum of workers, both professionals and blue-collar,” said James Parrott, the institute’s chief economist and author of the report. “It’s hitting young workers and older workers, and it’s poised to rise dramatically in the weeks and months ahead.”
http://www.nytimes.com/2008/12/12/nyregion/12jobs.html?hp
It's going to be severe here.
[less]
Response by waverly
about 17 years ago
Posts: 1638
Member since: Jul 2008
From what I have been seeing for most of 2008, large companies have been eliminating their use of outside consulting firms like The Big 4 or IBM, which has led to those consulting firms cutting headcount consistently throughout the year as their business has dried-up.
I think the next phase in Q1 ’09 will show these large companies quickly and almost completely cutting out any temporary employees they have, figuring that the people they have left can cover any of the work for the time being. After this, they will look at reducing their permanent employee headcount and, not surprisingly, the first people they will look to cut loose will be the low-performers, people on visas, anyone who they think will take an early retirement package and anyone who works in an area that could be considered more of a luxury than a necessity (sounds bad, but these roles do exist). Budget cuts will be made for departments (many already have been this year) which will result in less reimbursement for travel, meals, lodging. I am sure holiday parties will be more subdued and less expensive this year as well. Some firms will cut benefits, too. They will likely take a pause after this and see how the layoffs went and how they are positioned.
Every company will do their own version of this, but this will be the model that most will follow.
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Response by stevejhx
about 17 years ago
Posts: 12656
Member since: Feb 2008
Yes and independent contractors aren't able to claim unemployment, so they won't show up in the figures.
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Response by nyc10022
about 17 years ago
Posts: 9868
Member since: Aug 2008
Waverly, I think you're quite behind. The major "regular people" cuts have already started. Forget Wall Street, Time Inc just did a wave, got lots of "regular" folks. United Online closed down their entire New York office. Razorfish laid off 12% of the New York office, mainly half of the financial services team.
Pick up a copy of crains.
If you think this is just housecleaning, you're in for some surprises.
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Response by type3secretion
about 17 years ago
Posts: 281
Member since: Jun 2008
We've cleared the tip of the iceberg. The question is just how big a the sucker is underneath.
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Response by tech_guy
about 17 years ago
Posts: 967
Member since: Aug 2008
Time Inc: outdated print media
United Online: owns crappy, outdated, often spammy Internet properties. NetZero? Classmates.com?
Razorfish: Don't know much about them, but as you say, their financial services team...
Nothing terribly interesting here. Recessions cause bad companies to fail. Its a good thing overall. Some might even call it housecleaning. I feel bad for their employees, but if the employees are good, they'll find other work.
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Response by nyc10022
about 17 years ago
Posts: 9868
Member since: Aug 2008
> Recessions cause bad companies to fail.
Thank you professor.
Did you learn this on Gossip Girl?
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Response by nyc10022
about 17 years ago
Posts: 9868
Member since: Aug 2008
Seriously, pick up crains. Companies left and right laying off and closing down.
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Response by waverly
about 17 years ago
Posts: 1638
Member since: Jul 2008
NYC - beyond what you read in papers and on the net there is a whole lot more that is going on. Try to realize that you aren't an expert on all things and this is an area you know little about. You want information before it happens? That is what I am trying to give you, instead of having to rely on Crains for telling you what has already happened. I can also help you understand how it happens and what you can expect.
In 2001/2002 these people got whacked right away. They have been affected very little up to this point, but that is going to change as 2009 unfolds.
I don't need to read about employment in Crains. I talk to these companies on a daily basis and know what they are going to do well before you read it in Crains.
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Response by waverly
about 17 years ago
Posts: 1638
Member since: Jul 2008
Steve - you are right about independent contractors. I would be curious to know the number of independednt contractors working in NYC and nationally today versus 6-8 years ago. I am assuming that you are in that boat as well, right? Thankfully, your business has been pretty good this year.
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Response by nyc10022
about 17 years ago
Posts: 9868
Member since: Aug 2008
Apparently, you are well behind even Crains.
If you are claiming that its the fring folks who are getting laid off, you are wrong. I know from specific experience across multiple companies I deal with.
That crains could educate you doesn't mean that there isn't more to know, there certainly is.
It just that you don't seen to even gets whats already in the papers.
Remember, you told us this is different from 2001 and we wouldn't see the same job losses. That prediction was blown away.
So, not sure what "credibility" you are trying to boast with.
Clearly your insight because you are "in it" is meaningless.
You were wrong before, you are wrong now.
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Response by waverly
about 17 years ago
Posts: 1638
Member since: Jul 2008
Enjoy being thick-headed and ignorant.
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Response by nyc10022
about 17 years ago
Posts: 9868
Member since: Aug 2008
...coming from the guy who was in denial about us going into major recession....
ironic.
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Response by waverly
about 17 years ago
Posts: 1638
Member since: Jul 2008
wrong again....
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Response by cleanslate
about 17 years ago
Posts: 346
Member since: Mar 2008
Actually, there are companies who've seen this coming beforehand (meaning the slowdown on business) and already factored them in their decisions early this year. I don't think they foresaw how bad it would get though and obviously they're now planning to restructure.
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From what I have been seeing for most of 2008, large companies have been eliminating their use of outside consulting firms like The Big 4 or IBM, which has led to those consulting firms cutting headcount consistently throughout the year as their business has dried-up.
I think the next phase in Q1 ’09 will show these large companies quickly and almost completely cutting out any temporary employees they have, figuring that the people they have left can cover any of the work for the time being. After this, they will look at reducing their permanent employee headcount and, not surprisingly, the first people they will look to cut loose will be the low-performers, people on visas, anyone who they think will take an early retirement package and anyone who works in an area that could be considered more of a luxury than a necessity (sounds bad, but these roles do exist). Budget cuts will be made for departments (many already have been this year) which will result in less reimbursement for travel, meals, lodging. I am sure holiday parties will be more subdued and less expensive this year as well. Some firms will cut benefits, too. They will likely take a pause after this and see how the layoffs went and how they are positioned.
Every company will do their own version of this, but this will be the model that most will follow.
Yes and independent contractors aren't able to claim unemployment, so they won't show up in the figures.
Waverly, I think you're quite behind. The major "regular people" cuts have already started. Forget Wall Street, Time Inc just did a wave, got lots of "regular" folks. United Online closed down their entire New York office. Razorfish laid off 12% of the New York office, mainly half of the financial services team.
Pick up a copy of crains.
If you think this is just housecleaning, you're in for some surprises.
We've cleared the tip of the iceberg. The question is just how big a the sucker is underneath.
Time Inc: outdated print media
United Online: owns crappy, outdated, often spammy Internet properties. NetZero? Classmates.com?
Razorfish: Don't know much about them, but as you say, their financial services team...
Nothing terribly interesting here. Recessions cause bad companies to fail. Its a good thing overall. Some might even call it housecleaning. I feel bad for their employees, but if the employees are good, they'll find other work.
> Recessions cause bad companies to fail.
Thank you professor.
Did you learn this on Gossip Girl?
Seriously, pick up crains. Companies left and right laying off and closing down.
NYC - beyond what you read in papers and on the net there is a whole lot more that is going on. Try to realize that you aren't an expert on all things and this is an area you know little about. You want information before it happens? That is what I am trying to give you, instead of having to rely on Crains for telling you what has already happened. I can also help you understand how it happens and what you can expect.
In 2001/2002 these people got whacked right away. They have been affected very little up to this point, but that is going to change as 2009 unfolds.
I don't need to read about employment in Crains. I talk to these companies on a daily basis and know what they are going to do well before you read it in Crains.
Steve - you are right about independent contractors. I would be curious to know the number of independednt contractors working in NYC and nationally today versus 6-8 years ago. I am assuming that you are in that boat as well, right? Thankfully, your business has been pretty good this year.
Apparently, you are well behind even Crains.
If you are claiming that its the fring folks who are getting laid off, you are wrong. I know from specific experience across multiple companies I deal with.
That crains could educate you doesn't mean that there isn't more to know, there certainly is.
It just that you don't seen to even gets whats already in the papers.
Remember, you told us this is different from 2001 and we wouldn't see the same job losses. That prediction was blown away.
So, not sure what "credibility" you are trying to boast with.
Clearly your insight because you are "in it" is meaningless.
You were wrong before, you are wrong now.
Enjoy being thick-headed and ignorant.
...coming from the guy who was in denial about us going into major recession....
ironic.
wrong again....
Actually, there are companies who've seen this coming beforehand (meaning the slowdown on business) and already factored them in their decisions early this year. I don't think they foresaw how bad it would get though and obviously they're now planning to restructure.