Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

It's Final: Most lost jobs gone for good, analysts say
AP ^ | October 19, 2003

Posted on 10/19/2003 4:49:59 AM PDT by sarcasm

More than 3,100 pairs a day, three seconds under the needle for each pair - Judy Peavler was good at her job, stitching flies and zippers into Wrangler jeans.

At roughly $9.50 an hour, plus benefits, the job was good to Peavler, too.

So when VF Corp.of Greensboro cut hours at its jeans factory in Okmulgee, Okla., a few years ago, Peavler waited three months for business to bounce back. Now, though, she is certain the job is gone for good.

"My Dad used to preach to me to find a decent job and marry it -- don't move around and around like he did," said Peavler, whose husband, Roy, also worked at the plant before it closed in April. "So I took his advice ... but it didn't do me any good."

More workers like Peavler are finding themselves in similar straits in a labor market that is behaving very differently from its behavior in past economic cycles. In past downturns, employers cut large numbers of jobs in temporary layoffs, then called many workers back once a recovery began.

But although the economy continues to rebound, most of the 2.7 million jobs lost since early 2001 won't be coming back, analysts said.

In many cases, companies are cutting jobs and limiting hiring because of structural changes in their businesses and the broader economy.

Some of it is beyond companies' control, as demand for certain products and services dries up permanently. But employers also are limiting or cutting jobs by squeezing more productivity out of existing workers, sometimes by using additional technology. Many companies have cut jobs by outsourcing work to firms and facilities overseas.

"More and more employers are seeing the downturn in demand as an opportunity or a mandate to make permanent changes, to position themselves to be competitive when demand comes back," said Erica Groshen, an economist with the Federal Reserve Bank of New York.

Such permanent job cuts were not nearly as prevalent in past economic downturns, Groshen and a colleague, Simon Potter, concluded in a recent report.

In most past recessions, temporary layoffs accounted for 30 percent to 40 percent of the rise in unemployment, the pair found. Employers often helped workers to apply for unemployment insurance, kept in contact and called them back when business picked up.

Since those jobs cuts were reversible, they helped the labor market rebound quickly as the economy found its legs. That explains situations like one in September 1983, when the economy added more than 1 million jobs in a single month.

But that began to change in the early 1990s - during the so-called "jobless recovery" - when employers sent a larger share of workers home without any plans to call them back.

It is even more pronounced during the current economic cycle, with temporary layoffs accounting for just 7 percent of the rise in unemployment, Groshen and Potter found. With companies dismissing workers permanently, the kick-start provided by past callbacks from temporary layoffs is not happening this time around.

"In this recession and recovery, we had layoffs but no recalls and I blame that on structural problems, which means we shouldn't expect a rebound in employment any time soon," said Sung Won Sohn, an economist with Wells Fargo & -- Co. in Minneapolis.

Although the recovery began nearly two years ago, the economy has lost 1 million jobs since that time.

When employers added 57,000 new positions to payrolls in September, it marked the first increase in employment since January, even as the percentage of adults with jobs once again dropped.

It's not just that the economy is slow to create jobs. The bottom line for workers is that many of the jobs that will eventually be created will be very different from the positions they held before.

Workers like Peavler have begun trying to position themselves for that change. Peavler is 35 and worked at the VF plant for more than 10 years. Paid by the piece, she averaged about $9.50 an hour, good enough that she expected to stay in the job as long as she could.

But since 2001, VF has been closing U.S. plants and focusing production in Central America amid lagging demand for its jeans and stiff price competition.

The company has closed plants in Coalgate and Prague, Okla., as well as the one where the Peavlers worked not far from their home in Henryetta.

Later this fall, VF will close plants in Seminole and Ada, Okla., bringing to nearly 1,300 the number of jobs it has eliminated across the state.

"In order to compete ... you're almost forced to have it (jeans) produced in locations where you can get the best cost and unfortunately that's just not here anymore," said Sam Tucker, the vice president of human resources for VF Jeanswear.

For the Peavlers, the change was wrenching. The couple had just bought a house and taken out a home-improvement loan.

The family relied on the health insurance provided by VF. Judy Peavler's life was so tied to working with a sewing machine that she hadn't touched a computer in 16 years.

"It was like the carpet was being pulled out from under me and it was very, very scary," she says. "I told Roy, what are we going to do? We can't make it with me going back to waiting tables."

But Roy Peavler quickly found a job, restoring repossessed mobile homes.

And Judy Peavler is enrolled at Green Country Technology Center in Okmulgee, taking prerequisite courses for training as a nurse.

Other workers are trying to make similar adjustments, but it hasn't been easy.

Christine Kerrigan of Philadelphia worked as a project manager for ExciteAtHome, a high-speed Internet-service provider whose spectacular rise in the late 1990s was followed by an equally abrupt plunge into bankruptcy.

When the company began to fold and she lost her job in late 2001, Kerrigan said, she looked around for similar work and found some temporary consulting assignments. But soon those dried up, too.

Kerrigan, who is 35 and a single mother of two teen-agers, began to realize that an equivalent of the job she had wasn't going to come back, even with a different employer.

Kerrigan is now enrolled at the Community College of Philadelphia, studying for a new career as a physician's assistant.

However, as excited as she is about the prospects of change, it has taken a long time to shake off the disillusionment of seeing her last career evaporate.

"It was personally, such a setback for me when the work force said thanks but no thanks," she says.

"Everything I did was part of my makeup. It was part of who I am and they no longer needed me."


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; joblessrecovery; jobmarket; manufacturing
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 121-131 next last
To: q_an_a
and you never shop at walmart??? cost/price counts
21 posted on 10/19/2003 6:45:41 AM PDT by camas
[ Post Reply | Private Reply | To 7 | View Replies]

To: anniegetyourgun
How do you get a base of 12,500 for being a waiter. They are typically paid 2.13 per hour, aren't they?
22 posted on 10/19/2003 6:55:12 AM PDT by ItisaReligionofPeace ((the original))
[ Post Reply | Private Reply | To 4 | View Replies]

To: BushCountry
Re: post #3

Yours is the best and most practical advice I think. Is that not what makes Americans Americans? To be a master of circumstances, not a slave to them; opting for independence and self-ownership...

Problem is our anti-American, counter-cultural educational system teaches us at an early age to become like the euroweenies - inability to perform critical thinking, lazy, selfish, and stupid.

The entitlement mentality is deeply embedded in our thinking (in general - not everyone of course). And that's why what you suggest as the proper course of action falls on deaf ears many times.

23 posted on 10/19/2003 6:56:13 AM PDT by Paulie
[ Post Reply | Private Reply | To 3 | View Replies]

To: contessa machiaveli
but how do you give if you are out of work??
24 posted on 10/19/2003 6:56:49 AM PDT by camas
[ Post Reply | Private Reply | To 15 | View Replies]

To: sarcasm
But since 2001, VF has been closing U.S. plants and focusing production in Central America amid lagging demand for its jeans and stiff price competition.

So this corportation cannot even afford to pay 9.50 an hour? It looks like all the companies are using the same strategy, and the day will soon be coming when Americans can no longer buy their product. I doubt that the workers in Central America will be able to either.

25 posted on 10/19/2003 6:57:26 AM PDT by Lijahsbubbe
[ Post Reply | Private Reply | To 1 | View Replies]

To: sarcasm
Some FReepers are being heartless. I feel for someone who has worked somewhere for years and is then left without a job. She very well may have been a good employee. That said, it is HER responsibility to find a way after losing the job.
26 posted on 10/19/2003 7:01:09 AM PDT by ItisaReligionofPeace ((the original))
[ Post Reply | Private Reply | To 1 | View Replies]

To: anniegetyourgun
they tried something like "lifetime" employment in Argentina and the country just about went belly up.
27 posted on 10/19/2003 7:02:28 AM PDT by camas
[ Post Reply | Private Reply | To 19 | View Replies]

To: sarcasm
It's Final: Most lost jobs gone for good, analysts say

Old articles about chimney sweeps and buggywhip makers had the same title. They all became analysts.

28 posted on 10/19/2003 7:08:58 AM PDT by Moonman62
[ Post Reply | Private Reply | To 1 | View Replies]

To: PGalt
And that too is taxxxxxxxxxxxxxed.
29 posted on 10/19/2003 7:10:20 AM PDT by Vaduz
[ Post Reply | Private Reply | To 10 | View Replies]

To: sarcasm
Statistically speaking, analysts are wrong 85% of the time.
30 posted on 10/19/2003 7:14:07 AM PDT by ampat
[ Post Reply | Private Reply | To 1 | View Replies]

To: sarcasm
If it's final, then we don't need any more articles about it.
31 posted on 10/19/2003 7:16:04 AM PDT by Consort
[ Post Reply | Private Reply | To 1 | View Replies]

To: BushCountry
While your elected officials stab you in the back and sign trade agreements, pass regulations, and increase taxes to make us not competative in the new world economy you can cut your neighbors lawn while he washes your windows. The new service economy. Isn't it great. All of this to benefit a few stock holders and CEO's. Prices are falling....and so are we.
32 posted on 10/19/2003 7:20:18 AM PDT by cp124 (The Great Wall Mart)
[ Post Reply | Private Reply | To 3 | View Replies]

To: sarcasm
I have a great job. I am self-employed -- have my own small law firm with two associate attorneys working for me. What I do now is completely different than what I thought I would be doing when I graduated from law school, and living in another state. I had to (and therefore did) change with the marketplace.

It is man's adaptability that always has and always will be the key to his long term success. This waitress can either work to figure out what new services are and will be needed, and adapt to meet them, or she will become a ward of the welfare state (or marginally employable for years to come).

Everyone needs needs to consider what he is good at, what he can become good at, what he enjoys doing, what he can make a satisfactory living doing. Everyone also needs to understand how important it is to ask this question of himself every day.

33 posted on 10/19/2003 7:21:20 AM PDT by PackerBoy (Just my opinion ....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ItisaReligionofPeace
"How do you get a base of 12,500 for being a waiter. They are typically paid 2.13 per hour, aren't they?"

Bad math skills?

Kind of ironic.
34 posted on 10/19/2003 7:25:50 AM PDT by JohnSmithee
[ Post Reply | Private Reply | To 22 | View Replies]

To: conservatism_IS_compassion
It should be up to the employer to encourage its employees to improve their value within the organization, certainly so long as the employer hopes to maintain its workforce.

That was taught in business ethics, but in practice the employee had better look out for number one. Even as a well trained engineer and High School teacher I have seen my job vaporize. Not due to outsourcing, just the ebb and flow of the economy. I lost my engineering job twice in fact, but I was able in every case to find a compatible position with a relocation.

The emphasis on a location and medical insurance have put anchors on lots of us. My Niece has had to move several times to stay employed. But each time she moves, she finds the new place to be wonderful, and it beats going on wellfare (which she used to do.)

35 posted on 10/19/2003 7:28:02 AM PDT by KC_for_Freedom (Sailing the highways of America, and loving it.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: PackerBoy
"What I do now is completely different than what I thought I would be doing when I graduated from law school, and living in another state. I had to (and therefore did) change with the marketplace."

LOL.

Adaptability would be completely changing professions.
36 posted on 10/19/2003 7:29:31 AM PDT by JohnSmithee
[ Post Reply | Private Reply | To 33 | View Replies]

To: sarcasm
The word in business these days is sub contract. Sub contract out to get away from the liability and overhead costs.
So. Get some equipment and sub contract for the company to make whatever at a lower cost. Lets say one person makes one pair of jeans every 30 minutes for $4.50 plus $1.25 in overhead costs. So offer them to make three pairs an hour for $4.00. Then after a deal is set, make four pairs an hour for $4.00.
37 posted on 10/19/2003 7:49:36 AM PDT by crz
[ Post Reply | Private Reply | To 1 | View Replies]

To: JohnSmithee
I disagree with your comment. Any change a person makes to become more valuable to the marketplace is adaptation. Changing professions is such a little further along the same spectrum of change.
38 posted on 10/19/2003 8:11:56 AM PDT by PackerBoy (Just my opinion ....)
[ Post Reply | Private Reply | To 36 | View Replies]

To: PackerBoy
"I disagree with your comment. Any change a person makes to become more valuable to the marketplace is adaptation."

But this has been true for a long time now. The difference now is that the typical person will need (forced?) to change careers a number of times during their working lives. This is really one of the points of the article we are discussing, and thus my comment.

"Changing professions is such a little further along the same spectrum of change."

I would tend to disagree with this statement.
39 posted on 10/19/2003 8:42:46 AM PDT by JohnSmithee
[ Post Reply | Private Reply | To 38 | View Replies]

To: sarcasm
It is not the federal government's responsibility to give anyone a job but the federal government bears the blame for signing one-side agreements with other nations directly resulting in the loss of nearly three million American manufacturing jobs.

Real income is not rising in America because of policies of the government to reduce the value of American labor.

All of these heartless posters on FR would have been quite entertaining during the Great Depression - blaming the average citizen, who desperately wanted to work, for his/her own poverty.

I guess it's the Marie Antoinette argument: "Let them eat cake," or, as they say in Texas, "If you ain't got an oil well...git one!"

40 posted on 10/19/2003 8:57:39 AM PDT by NoControllingLegalAuthority
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 121-131 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson