Big job losses in the US
Updated
And the US recession is cutting a swathe through the American workforce, with companies announcing nearly 60-thousand job cuts in a single day.
The US economy lost close to three million jobs last year and many economists fear millions more will disappear in 2009. On the same day, European companies have slashed more than 10-thousand jobs, raising fears about an even deeper global recession.
Presenter: Michael Rowland
Speakers: Barack Obama US President; Sara Johnson, Economist, Global Insight
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MICHAEL ROWLAND: For many American workers it's been a grim start to the working week.
Some of the country's biggest companies have embarked on a job cutting binge as they grapple with plunging profits and a dreadful economic outlook.
Caterpillar, which makes bulldozers and other equipment for the mining and construction industries, including those in Australia, is to sack 20,000 of its workers worldwide.
Drug giant Pfizer is to cut 19,000 jobs when it completes a takeover of rival drug maker Wyeth.
Telecommunications company Sprint Nextel is shedding 8,000 staff or 14 per cent of its workforce.
Home improvement retailer Home Depot is axing 7,000 positions.
And carmaker General Motors is saying goodbye to 2,000 more of its workers.
All of these jobs cuts were announced within the space of couple of hours.
They follow deep cuts last week at computer firms Microsoft and Intel and at United Airlines.
A sombre US President Barack Obama fronted the cameras at the White House to sympathise with those workers affected.
BARACK OBAMA: These are not just numbers on a page. As with the millions of jobs lost in 2008, these are working men and women whose families have been disrupted and whose dreams have been put on hold.
MICHAEL ROWLAND: Mr Obama used the shocking news to step up pressure on the US Congress to quickly pass his proposed $1.2-trillion economic stimulus package.
BARACK OBAMA: We cannot afford distractions and we cannot afford delays. And that is why I look forward to signing an American recovery and reinvestment plan that will put millions of Americans to work and lay the foundation for stable growth that our economy needs and that our people demand.
MICHAEL ROWLAND: Even this may not be enough to save millions more American workers.
A grim report by the National Association of Business Economics says nearly half of those companies surveyed expected to make what they described as significant job cuts over the next six months.
The survey says America is facing its worst business conditions in nearly 30 years.
Sara Johnson, an economist with Global Insight, helped compile the report.
SARA JOHNSON: This is a cutting in most sectors of the economy, the one exception is services.
MICHAEL ROWLAND: And this, of course, is in direct response to the US recession and the very grim economic outlook?
SARA JOHNSON: Yes, it's a response to a very rapidly deteriorating business climate. Companies have really slammed the brakes on capital spending and hiring.
