2001 April

First month of the 2nd quarter of the 2nd year of the Clinton-Bush economic depression

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updated: 2016-08-14
2001 April
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2001 April

First month of the 2nd quarter of the 2nd year of the Clinton-Bush economic depression

  "Over-regulation is one of the major impediments to a growing economy." --- Michael Boskin (quoted in Doug Bandow 1993 October "America's Regulatory Dirty Dozen"; reprinted in Doug Bandow 1994 _The Politics of Envy_ pg 188)  



Tim McDonald _News Factor_
Demand for IT workers plummets
"demand for high-tech workers fell 44% in the past year, according to an industry report released Monday.   High-tech companies plan to hire 900K IT workers this year, compared to 1.6M last year, the study by the Information Technology Association of America (ITAA) found...   The study found that the national IT work-force amounts to 10.4M people, not counting those in government, non-profit organizations or small, entrepreneurial firms.   The figure is 4% higher than the 10M total found last year.   The study said IT employment remains at the forefront of the economy, comprising 7% of the total U.S. work-force...   Dot-coms have cut pay-rolls by more than 75K employees in the past 16 months, according to Challenger, Gray and Christmas, an out-placement firm.   At least 327 dot-coms have failed since 2000 January, about half of those since 2000 December, according to San Francisco research firm Webmergers.com...   Yet there were 16K new H-1B workers in February of this year, down from 32K a year ago, according to the U.S. Immigration and Naturalization Service.   More than 400K H-1B workers are currently in the United States on 6-year visas, mainly from India, [Red China] and Eastern Europe...   there has been a significant drop in the number of IT jobs advertised on the Internet and a trend back to non-technology areas, according to the Olivier Internet Job Index.   The index said the sector has continued its slide over the past 16 months, falling 15.8% in March...   said Robert Olivier. 'In May last year, we found there were 2.5 times more jobs in this sector than there had been just 6 months before.   Now, there are 10% less than there were in 1999 December.'"

Anne Fisher _CNN_/_Fortune_
Surviving The Down-Turn, Market Turmoil, Lay-Off Announcements
"A recent poll of 753 laid-off executives by head-hunting behemoth Lee Hecht Harrison found that 97% now use the Internet to do research on employers, and 76% post their resumes on-line."


David Boaz _Cato Institute_
Bush's Tiny Tax Cut
"On average, it's a tax reduction of $160G a year...   If you use enough years, any number -- tax cuts, tax hikes, spending on bananas -- would seem immense...   According to revised numbers from the Congressional Budget Office, the 10-year total revenue figure (including pay-roll taxes) for the federal government will equal $28.6T.   That is the largest amount of money collected by any government in history.   The tax cut is about 5.6% of the government's projected revenue...   Kennedy proposed a cut that amounted to 12.6% of projected federal revenues, while Reagan cut 18.7% of projected revenues...   We talk about spending money on housing, education, medical care and the like -- and that's what the people who earn it will do.   The argument is over whether the money should be spent by individuals and their families or by elected officials and federal employees."



2001-04-05 14:59PDT (17:59EDT) (21:59GMT)
USA job cuts deepen
"The slowing US economy posted a loss of over 150K jobs in March, the fourth month in a row of cuts in excess of 100K.   That brings the total to over half a million. Verizon
Biggest US job cuts so far this year
During the first 3 months of the year, more jobs were lost than in all of 1990.   This year is shaping up to be a bad one for workers with the number of job cuts nearly 2-fold higher than for the same 3-month period last year, according to a report by out-placement-firm Challenger Gray & Christmas."

Michael Mahoney _CNN_/_eCommerce Times_/_CIO Today_/_NewsFactor_
Lay-Offs Not Needed To Save E-Businesses
"The study [by Gartner], _Nine Ways to Cut Costs and Save E-Business Initiatives_, out-lines the ways in which chief information officers can improve the cash flow of e-tailers by focusing on changes to information technology (IT) infra-structure, rather than by slashing e-commerce programs...   In fact, employee lay-offs are often a quick fix to save money that can actually hurt the enterprise in the long run.   According to the report, large, billion-dollar companies can save between US$2M and $5M with proper management of their operations groups...   By analyzing TCO areas such as the diversity of a company's desk-top operating systems and office suites, the variety of service levels, the number of physical moves made by personnel, the number of physical desk-top locations, and the frequency of major software roll-outs, e-businesses with revenues of $1G to $5G can reduce IT support by $4M to $6.5M, the report said."

2001-04-05 (13:59PST) (16:59EST) (22:59UK) (21:59GMT)
US job cuts deepen
"The slowing US economy posted a loss of over 150K jobs in March, the fourth month in a row of cuts in excess of 100K.   That brings the total to over half a million. The report notes that in March nearly 163K jobs were lost, higher than February's 101,731 and far greater than 2000 March's cut of 56K...   Worst affected states: California, Michigan, Connecticut, Ohio, Illinois..."
Worst months for US jobs
1993 January103,217
1994 January108,946
1998 December103,166
2000 December133,713
2001 January142,208
2001 February101,731
2001 March162,867






Linda Thom _V Dare_
Immigration's Role in School Over-Crowding




Mike Hudson _The Detroit News_
Survey: Consumer faith lowest since 1993
"The widely watched University of Michigan's consumer sentiment index fell to 87.8 after making an unexpected jump to 91.5 in March.   The preliminary number for April..."




Bruce Bartlett
Mind-Numbing Complexity
"One of the things that has puzzled me for a long time is why people aren't more upset by the high level of taxes they pay, the gross unfairness of the tax system and its mind-numbing complexity."



2001-04-17 18:55PST (2001-04-17 21:55EST) (2001-04-18 02:55GMT)
Rachel Konrad _CNET_
Ruling could be a boon to H-1B workers
"Companies that specialize in finding and placing foreign programmers at US companies -- derisively dubbed 'bodyshops' -- may no longer force workers to sign non-compete agreements or penalize them for quitting, according to a February ruling against Compubahn...
  San Francisco-based attorney Mike Papuc... calls contract recruitment a form of 'indentured servitude' for foreign workers who don't necessarily understand English or the US legal system.   He says many foreign workers have paid large sums of money to settle their contract disputes out of court because they can't afford to hire American attorneys or are under the impression that a court battle could jeopardize their visa.
  Compubahn, for example, required Joshi to pay a $25K 'finder's fee' and sign a contract that forbade him from working directly for clients...   In 1999 June, when Oracle asked Joshi to join the company, he accepted.   Compubahn then sent Joshi a letter demanding $77,085 for the finder's fee, a penalty for joining a Compubahn client and expenses that Compubahn incurred...   a growing number of career advisers are urging programmers to avoid recruiters and only accept H-1B visas directly from established employers..."

2001-04-18 11:49
_USA Today_/_Reuters_
Some Job Seekers Finding New Employment Quickly


Most Invasive Proposal:
The Expanded Computer Assisted Passenger Screening Program
to spy on & profile all travellers by the people who screwed up Enron & your credit reports.
Runners Up:
The Washington DC video surveillance system
for turning the national mall into j. edgar hoover park.
The American Association of Motor Vehicle Administrators
scheme to turn your driver's license into a national ID card.
Greatest Corporate Invader:
Larry Ellison, CEO of Oracle
for championing a national ID card using his software
Runners Up:
Quest Communications
for placing everyone in tele-marketer hell and opposing laws on keeping phone records private.
The Financial Services Coordinating Council
for fighting against bank privacy in every state
Worst Public Official:
Attorney General John Ashcroft for attacking privacy & freedom of information
Runners Up:
California Governor Grey Davis
for vetoing 3 workplace privacy bills, sabotaging financial privacy & proposing a Cal-Patriot Act so bad that his own counsel said it was illegal.
HHS Secretary Thommy Thompson
for gutting the HIPAA Medical privacy regulations to allow drug companies to have everyone's medical records without permission.
Lifetime Menace:
Admiral John Poindexter
for NSDD-145, "Sensitive but Unclassified" & the new Office of Information Awareness to spy on everyone just in case you are a terrorist.
Runners Up:
Booze Allen & Hamilton
for providing the FBI with CALEA, Carnivore, Magic Lantern & lots more surveillance toys that we don't know about (yet).
Direct Marketing Association
for ensuring that your junk mail is correctly delivered to you.

The 2002 US Big Brother Awards: Cathedral Hill Hotel; San Francisco, CA
Privacy links2001-04-19



"Two million times a year, armed civilians stop crime.   That's 7 times more than all the police departments in the country put together.   It is a balance of power that I don't think should be damaged further." --- Anna Zetchus Raetz 2001-04-21



Heidi B. Perlman _San Diego Union-Tribune_ pg B1
High-tech worker glut, Failing economy generating Fear
"With the shut-down of Internet start-ups & a slow-down in the economy, a glut of people with experience in high-tech industries are competing for available jobs, leaving fewer opportunities for recent graduates...   Several... regular recruiters canceled this year because of hiring freezes & cut-backs... while others pulled out at the last minute because of low student interest."

Ivan Gale and Jeff Palfini _The Industry Standard_
Putting Lay-offs in Perspective
"Internet Economy firms, from the tiniest start-ups to giants such as Yahoo! and Cisco, have announced lay-offs of almost 90K workers since 2000 January...   The University of Texas estimates that 3.1M people worked in the Internet Economy as of last June, which means that lay-offs to date account for only 2.5% of the Net work-force.   Meanwhile, the overall economy has seen 2.2M lay-offs since January, representing approximately 1.6% of a total work-force of 135.8M people.   During this year's first quarter - the toughest yet for dot-coms - Internet job cuts amounted to nearly 26K; that's about 7% of all lay-offs tracked by out-placement firm Challenger, Gray & Christmas.   Automobile manufacturers eliminated almost 35K jobs, and retailers let go more than 15K people."



_Berkeley Daily Planet_/_AP_
No surprise, consumer confidence drops
"But economists played down the timing, saying much of the April drop reflected a souring assessment of business conditions and job prospects.   The index has declined for most of the past year, but consumers' assessments of business conditions and job prospects had remained strong – until April.   'This plunge... is a significant turn for the worse, to my way of thinking, because what it's saying to me is that the cumulative affect of lay-offs and rising energy prices is now really reaching into people's pocket-books.', said David Orr, chief economist for First Union Corp. in Charlotte, NC...   'It's clear that consumers have begun to worry about employment trends and these concerns are gnawing away at consumer confidence.', Franco said...   On employment, 14.2% of those surveyed said jobs are 'hard to get', up from 12.6% last month.   Those saying jobs are plentiful fell from 43.8% to 40%."
more Conference Board info

2001-04-25 14:10PDT (17:10EDT) (21:10GMT)
Rachel Konrad _CNET_
Body shop must pay fees in H-1B law-suit
"According to the original ruling, which the judge upheld April 18, recruitment agency Compubahn must pay $215,050.61 in legal fees and other expenses to Dipen Joshi.   The 33-year-old from Gujarat, India, sued Compubahn in 2000 January for fraud, misrepresentation and violation of a California statute against unfair competition...   The programmer left Gujarat in March 1998 to work for Compubahn, which he thought was a computer programming company with clients such as Oracle and Sun Microsystems.   The company's Web site says it provides "end-to-end solutions for its clients from database design and development through Dynamic Web-based applications.'   Joshi said he soon realized that Compubahn was not a technology company, but instead a [body shop] that placed foreign programmers in U.S. companies [temporarily]."


Sharon Machlis _ComputerWorld_
Dot-com job cuts hit record in April (with table)
abc News
"Job cuts in the Internet arena have hit a record 17,554 so far this month, according to an out-placement company that tracks Net-related lay-offs.   That's up more than 80% from the 9,533 cuts announced last month."

Sharon Machlis _ComputerWorld_
Dot-com job cuts hit record in April (with tables below)
"Job cuts in the Internet arena have hit a record 17,554 so far this month, according to an out-placement company that tracks Net-related lay-offs.   That's up more than 80% from the 9,533 cuts announced last month."

Dot-Com Job Cuts: 2000 January - 2001 April
2000 Jan303
2000 Feb130
2000 Mar25
2000 Apr327
2000 May2,660
2000 Jun1,652
2000 Jul2,194
2000 Aug4,193
2000 Sep4,805
2000 Oct5,677
2000 Nov8,789
2000 Dec10,459
2000 total41,215
2001 Jan12,828
2000 Feb11,649
2000 Mar9,533
2000 Apr17,554

Allan E. Wall _American Patrol_
anchor babies


Michael Mahoney _CNN_/_eCommerce Times_/_CIO Today_/_NewsFactor_
After Lull, Dot-Com Lay-Offs Set Record in April
Tech News World
"After 2 consecutive months of declining lay-offs, dot-com companies made a record 17,554 job cuts in April, marking an 84% increase over the 9,533 e-business jobs cut in March, according to a report released Thursday by job placement firm Challenger, Gray & Christmas (CGC)...   April's job cuts beat the previous record of 12,828, set in January.   In 2000 April, only 327 dot-com job cuts were announced.   In the first 4 months of 2001, a staggering 51,564 dot-com cuts have been recorded -- more than any other 4-month period since CGC started tracking lay-offs in 1999 December."

Darcy Evon
Life after lay-offs
"Chicago-based out-placement firm Challenger, Gray & Christmas reported that over 51,500 people have lost their jobs since January with 17,554 of those reflecting dot-com lay-offs in April, a shocking increase of 84% in dot-com lay-offs over March."

Amanda L. Milligan _Crain's Chicago Business_
Dot-com shake-out gains steam with 17,554 lay-offs announced in April
"There were a record-breaking 17,554 dot.com jobs eliminated in April—compared with 327 cuts made in the year-earlier period.   April's figure was 37% higher than in January, when the most severe cut-backs before this month had occurred.   And the April figure nearly doubled the 9,533 cuts announced in March...   The technology sector, with 6,059 cuts, far surpassed other product categories in April.   Rounding out the top three industries with the most cuts were consumer services and financial services, with 2,959 and 2,341 cuts, respectively...   In 2001, there have been 51,564 dot.com jobs cuts announced nationwide.   Challenger Gray & Christmas has tracked dot.com job cuts nationally since 1999 December."

Norm Matloff _V Dare_
In Oakland Americans Need Not Apply
"On Tuesday, April 24, the Oakland City Council passed a law which will require the city to fill openings in certain designated job categories (e.g. librarians, building inspectors, etc.) with workers who are bilingual in either Chinese (specifically Cantonese) or Spanish...   the city already offers bilingual services.   The real reason for making a new law, not stated by de la Fuente and the others, is that they want much more than 'some' access for the non-Anglophones; they want equal access.   The term 'equal access' appears throughout the statute, including in its title...   Second, there are only a few jobs open per week in all the designated categories combined.   That means it will take many years to hire enough people to provide 'equal access'.   At the very least the vast majority of jobs in those categories will go to Latinos and Chinese for some years to come...   70% of Asian-Americans are indeed immigrants...   If Asian-American activists want their group to be treated as Americans, they should consider the effect of continuing high levels of Asian immigration on such attitudes -- and certainly should not support laws like the new one in Oakland...   Interestingly, Brown related the 'need' for 'equal access' bilingual service to the H-1B program! He spoke of the 'global economy', and how much we "need" the H-1Bs (this was right after he mentioned a big plan to make Oakland a high-tech center)...   He said that once the H-1Bs become immigrants, they bring their elderly parents to the U.S.   The latter don't know English, and according to Brown, can't learn English.   (My personal experience as an ESL teacher in San Francisco Chinatown says otherwise.)"




2001 April
_Employment Policy Foundation_
Fact & Fallacy: Putting Lay-Offs in Context
"Median duration of unemployment has ranged between 9.4 weeks & 5.8 weeks over the past 10 years."

2001 April
Carl F. Horowitz _Center for Immigration Studies_
An Examination of US Immigration Policy and Serious Crime

2001 April
_American Journal of Roentgenology_/_NIH_
The radiology job market

2001 April
Mike Frost _HR News_
Despite Down-Sizing, Employment Levels Hold Steady (with table, below)
"According to a report issued by Challenger, Gray & Christmas, an international outplacement firm in Chicago, employers trimmed nearly 378K positions from their payrolls in the three months between 2000 December and 2001 March.   That compares with just fewer than 131K positions during the same period a year earlier...   During February, reported Challenger Gray & Christmas, companies announced they would give pink slips to about 101,700 employees.   That's down 28% from January, when 142,200 lay-offs were announced.   However, it is up significantly from this time last year; in 2000 February, only 35,400 jobs were cut...   John Miller, senior vice president of U.S. sales and marketing at Drake Beam Morin, an out-placement firm based in Boston... has seen a rise in 'dwell time' -- the amount of time it takes a recently laid off worker to secure a new position."

Number of workers affected by lay-off announcements
2000 Feb35,415
2000 Mar55,783
2000 Apr37,291
2000 May27,036
2000 Jun17,241
2000 Jul63,967
2000 Aug57,221
2000 Sep47,687
2000 Oct43,799
2000 Nov44,152
2000 Dec133,713
2001 Jan142,208
2001 Feb101,731

_BigCharts.com_ S&P Retail Index
Note the signs of weakness shown in the dip from 1998 July through November, relatively flat 1999, and the drop all through 2000.

AAA southern California fuel prices
AAA national fuel prices
AAA state by state

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