Job loss: Worst in 34 years Employers slashed 598,000 more jobs in January as unemployment rate climbed to 7.6%. By Chris Isidore, CNNMoney.com senior writer Last Updated: February 6, 2009: 10:46 AM ET NEW YORK (CNNMoney.com) -- Employers slashed another 598,000 jobs off of U.S. payrolls in January, taking the unemployment rate up to 7.6%, according to the latest government reading on the nation's battered labor market. The latest job loss is the worst since December 1974, and brings job losses to 1.8 million in just the last three months, or half of the 3.6 million jobs that have been lost since the beginning of 2008. The loss since November is the biggest 3-month drop since immediately after the end of World War II, when the defense industry was shutting down for conversion to civilian production. January's job loss was also worse than the forecast of a loss of 540,000 jobs from economists surveyed by Briefing.com The rise in the unemployment rate also was worse than the 7.5% rate economists expected. The unemployment rate is now at its highest level since September, 1992. As bad as the unemployment rate was, it only tells part of the story for people struggling to find jobs. Friday's report also showed that 2.6 million people have now been out of work for more than six months, the most long-term unemployed since 1983. And that number only counts those still looking for work. The so-called underemployment rate, which includes those who have stopped looking for work and people working only part-time that want full-time positions, climbed to 13.9% from 13.5% in December. That is the highest rate for this measure since the Labor Department first started tracking it in 1994. More job pain ahead? Some economists are worried that the labor market is poised to get worse still. "This has just begun," said Sung Won Sohn, economics professor at Cal State University-Channel Islands. He projects an unemployment rate rising above 9% by the end of the year, while the monthly job losses could soon top 800,000. "Hiring is falling off dramatically and layoffs are accelerating," he said. "The layoffs have become an almost popular thing to do for corporations. Many businesses are scared. They want to take precautionary steps." January was a brutal month for layoffs, as major companies ranging from Microsoft (MSFT, Fortune 500), Boeing (BA,Fortune 500) and Caterpillar (CAT, Fortune 500) to Home Depot (HD, Fortune 500) and Starbucks (SBUX, Fortune 500) all announced substantial job cuts. Announced layoffs so far this year have already topped 300,000. In addition, payroll services firm ADP estimates that small- and mid-sized businesses trimmed 430,000 jobs in January. "The breadth of job losses now surpasses the prior two recessions," said John Silvia, chief economist for Wachovia. The report showed the already battered manufacturing sector shedding 207,000 jobs last month, while the construction industry cut 111,000 jobs. But it's not just the goods-producing sector that is losing jobs. The services sector, which now provides more than two-thirds of the nation's employment base, also reported widespread losses. Business and professional services, the sector that includes lawyers, accountants and tech services, lost 121,000 jobs. Retailers cut 45,000 workers, while the finance sector trimmed 42,000 workers and the leisure and hospitality sector lost 28,000. The number of temporary workers, viewed as another indicator of business and labor market strength overall, fell by 76,000. Among the only sectors posting narrow gains in jobs were education, health services, and the government. Weak numbers to take center stage in stimulus debate The jobs report comes as the Senate debates the Obama administration's proposal for a nearly $900 billion economic stimulus bill. During a debate late into the night Thursday Republicans and some Democrats questioned the bill's mix of measures and its size. The White House released a statement saying the January report was proof that quick approval of the stimulus bill is needed. "These numbers, and the very real suffering of American workers they represent, reinforce the need for bold fiscal action," said Christina Romer, the chair of the President's council of economic advisers. "If we fail to act, we are likely to lose millions more jobs and the unemployment rate could reach double digits." Brian Bethune, chief U.S. financial economist for research firm Global Insight, said how quickly the stimulus plan is passed, and how effective it is in jump-starting the economy, will determine whether the recent job losses are the peak, or if they continue to climb. He argues that stimulus needs to be for programs that get money into the economy as quickly as possible. "Business confidence is extremely weak right now," he said. "They've taken a show-me-the-money attitude. What you need to stop more job losses is a series of very effective policies. That's the only thing that will help here." First Published: February 6, 2009: 8:37 AM ET

'Buy American' stimulus plan riles trade partners

'Buy American' stimulus plan riles trade partners

by Veronica Smith Veronica Smith 1 hr 41 mins ago

WASHINGTON (AFP) – A new "Buy American" push in President Barack Obama's economic stimulus plan is sparking protests about protectionism from US trading partners.

Passage of the 819 billion dollar economic stimulus package Wednesday by the US House of Representatives raised hackles in Europe and Canada, the United States's biggest trading partner.

Obama has pushed for swift passage of the American Recovery and Reinvestment Act as vital to prevent the collapse of the US economy, reeling from the global financial crisis that has thwarted governments' unprecedented actions to ease the turmoil.

The legislation's package of tax cuts and spending has moved to the Senate, where lawmakers are working on their own version of the plan.

The bulk of the bill's spending is aimed at bringing aging infrastructure into the 21st century to preserve and improve the country's long-term competitiveness in the global economy, creating millions of jobs in the process.

The sweep of projects is broad, from roads, rail, bridges, airports and dams to military construction and housing, among others.

The House-approved plan's "Buy American" provision generally prohibits the purchase of foreign iron and steel for any infrastructure project in the bill.

The European Union's trade commissioner, Catherine Ashton, pre-emptively voiced concern about the US measure.

"We are looking into the situation. ... Before we have the final text ... it would be premature to take a stance on it," Ashton's spokesman, Peter Power, said in Brussels.

"However, the one thing we can be absolutely certain about, is if a bill is passed which prohibits the sale or purchase of European goods on American territory, that is something we will not stand idly by and ignore," he said.

Canada's government said it is concerned about US protectionism in the economic stimulus and its diplomats were lobbying US makers against the "Buy American" drive.

"We're always concerned when there are protectionist pressures in the United States," Industry Minister Tony Clement told public broadcaster CBC.

"At the same time the United States has treaty obligations," he said, citing US membership in the World Trade Organization and the North American Free Trade Agreement (NAFTA).

"And we expect the United States to live up to its treaty obligations of open and fair trade."

About 40 percent of Canadian steel is sold in the United States and Canada imports steel from its southern neighbor.

Clement said Canadian diplomats have been lobbying US lawmakers "to try to persuade them to take that clause out or soften it or at least not make it any tougher in the days ahead."

Prime Minister Stephen Harper also plans to bring up the controversial clause in talks with Obama when he visits Ottawa on February 19, he said.

The "Buy American" provision bars spending on any infrastructure project "unless all of the iron and steel used in the project is produced in the United States."

There would be exceptions if the head of the federal department or agency determines that applying the provision "would be inconsistent with the public interest."

Other exceptions would be made if there was an insufficient quantity of US iron and steel of satisfactory quality available and if inclusion of US iron and steel would raise the overall project's cost by more than 25 percent.

Italian Trade Minister Adolfo Urso warned Monday as the US legislation was being developed: "A dangerous new steel war is looming and we need to counter it with strong and decisive actions."

A European familiar with an EU trade commissioner dinner held the same day said that "one or two delegations signaled that the US recovery package contains seeds of a new steel dispute."

Obama, who criticized international trade agreements, including NAFTA, in his presidential campaign, has wasted no time in taking a tough stance on the trade front since taking office on January 20.

The next day, the Obama administration branded China a currency manipulator, setting the stage for a trade war with the Asian giant which has overtaken Japan as America's biggest foreign creditor.

(http://news.yahoo.com/s/afp/20090129/pl_afp/uspoliticstradedispute_20090129173404)

Why does the article fail to mention the following?

This is a list of the largest steel-producing companies in the world according to the World Steel Association. The list is compiled from its page Top Steel Producers 2007. Note that not all steel is the same, some steel is far more valuable than other steel.

(Output in million metric tons crude steel; the country/region of producer's basing specified in brackets)

1. 116.4 Mton ArcelorMittal (Global)
2. 35.7 Mton Nippon Steel (Japan)
3. 34.0 Mton JFE (Japan)
4. 31.1 Mton POSCO (South Korea)
5. 28.6 Mton Shanghai Baosteel Group Corporation (China)
6. 26.6 Mton Tata Steel (India / Global)
7. 23.6 Mton LiaoNing An-Ben Iron and Steel Group (China)
8. 22.9 Mton Shagang Group (China)
9. 22.8 Mton HeBei Tangshan Iron & Steel Group (China)
10. 21.5 Mton United States Steel Corporation (United States)

From $80,000 a year to eviction: Hard times in America

Suck it up and move on. Been there. It is the survival of the fittest country!!!

"Came to US with US $3,000 in 1986. Washed windows at ASU in summer. Moved up and up the hard way. Paid $72,000 Federal Tax one year. Laid off from a well known company where I worked for 8 years. Worked at Barnes and Nobles the next year for $7/hr. Sold 1/2 a $million home 5 years ago. Did not get a single "c" unemployment. Refused to file. Filled for Chapter 13 five years ago. Just two payments left. I did not ask for any stinking bailout. (US7,400,000,000,000 and counting). Don't complain."

By Wayne Drash

CNN.com Senior Producer

(CNN) -- Amber Easton has gone from $80,000 a year in salary to scrambling for work. At a time in her life when she should be scaling the corporate ladder, she has instead spiraled into a deep depression. She recently lost her car and now faces eviction from her apartment.

"I never imagined ... that I would be in such a situation at my age," said Amber Easton, 35.

Just last week, the 35-year-old longtime working professional attended two job fairs with friends in the Detroit area. They stood in line for over three hours with hundreds of professionals of all types.

"It was a real eye-opener to see the caliber of people we were in line with -- very educated with vast skill sets," Easton said in an e-mail. "Afterwards, we went to the restaurant located in the same hotel and it was filled with unemployed professionals sharing their story, from engineers to graphic designers to marketing professionals."

Easton's saga began in July 2007 when she traded in her job as a corporate compliance officer to attend law school, what she thought would help advance her career. But after a year of law school, she decided it wasn't for her. By then, her old job was gone and the job market had shrunk.

"It's hard not to be depressed during a time like this," she wrote iReport.com. "I never imagined in a million years that I would be in such a situation at my age and at this point in my career. I am humiliated. I am praying for everyone else out there is who are facing the same problems."

She has applied to 70 different companies but gotten few leads. She recently went through a rigorous interview process for one job in another state, but to no avail. Share your economic survivor story

Every day, she searches for new job possibilities and every day results in more desperation. She estimates she's making $20,000 -- "if that" -- as a contract employee working from her home. "I just haven't made enough to keep up."

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Her Detroit neighborhood a couple years ago was booming, she said, but now "it's like a ghost town around here."

"It's bad everywhere, but it's so, so bad here," she said.

Across the nation, people like Easton are feeling the pinch. Good jobs have evaporated. Former full-time employees are now working part-time contract positions just to get by.

Nearly 2.6 million jobs were lost during 2008, the highest yearly total since the end of World War II in 1945. This week alone, major corporations have announced more than 80,000 job cuts, bringing this year's total to well over 200,000.

Dr. Rosalind Dorlen is a clinical psychologist in Summit, New Jersey, an area she calls a "Wall Street ghetto" where formerly high-flying executives are out of work.

"Here, the people earn millions of dollars with bonuses that are astronomical," said Dorlen, who is also the public education coordinator in New Jersey for the American Psychological Association. "There is a demoralizing aspect to having a huge salary and a huge bonus and then having to look for a job that is going to pay much, much less."

She added, "What I'm hearing is a terrible sense of betrayal, anxiety and people experiencing lots of stress." That, in turn, can lead to an increase in unhealthy coping behaviors, such as an uptick in alcohol consumption, unhealthy eating and worse sleeping habits.

Dorlen has several tips for people out of work:

• Don't panic;

• Find a support group, even if it's just an informal group of friends;

• Seek employment counseling when available;

• Be professional in your job hunt;

• Network with other professionals;

• Take time to exercise during hard times;

• Spend valuable time with your family.

On a practical note, she said people should contact their creditors to let them know the situation. She also advises people to do volunteer work and to cultivate a "spirit of optimism."

"Bad times pass, and it's sometimes hard to see that when you're in the throes of a terrible place," she said. "I think we do need to hold onto a spirit of optimism and a sense of confidence." See Top companies: They're hiring!

"I think we're getting mired in the gloom and doom, and we need to hold on to the fact that lots of people are working."

CNN's user-generated site, iReport.com, has been flooded with messages from people out of work. One woman held up her husband's résumé and said, "Please, please, please take him off my hands." Watch woman plead case for hubby

"My husband can knock out a honey-do list like nobody's business, and he meets my great, high standards every day. Don't let my husband slip through your hands. He would be a great addition to your team," the woman said under the headline "Wife Seeking Job for Husband."

In Delaware, Manoj Philip, 24, said he had a full-time job in 2007 with Agilent Technologies making about $55,000 a year, including all the perks and benefits that came with it. But in July 2007, he quit that job to pursue a career in real estate.

"I knew it wasn't going to be easy, but I didn't think it would be this tough," he said.

By September 2008, Philip needed a second income because of the withering housing market. He picked up a full-time contracting job and continues to do real estate about 20-30 hours per week.

It was a shock, he said, to return to full-time work while putting his real estate dreams on hold. "It took a lot for me to change that mental outlook. Because before I would've thought of it as something holding me back," Philip said. "But I don't look at it like that anymore."

He's since learned the value of living within his means, budgeting and making every dollar he spends count for something. "These are really important lessons to learn. I'm glad I learned it at such a young age."

In Detroit, Easton said she knows America will bounce back at some point, but "in the meantime, people are losing everything."

"That's what scares me," she said.