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Linda Young – AHN News Writer

Washington, DC, United States (AHN) – Initial jobless claims for the week ending Jan. 21 rose by 21,000 to 377,000, compared with the previous week’s revised figure of 356,000, the U.S. Department of Labor said.

The less volatile four-week moving average was 377,500, a drop of 2,500 from the previous week’s revised average of 380,000.

DOL figures show that the total number of people claiming benefits in all programs for the week ending Jan. 7, the most recent week for which such data is available, was 7,638,233, down by 188,612 people from the previous week.

The largest increases in initial claims for the week ending Jan. 14 were:

  • Florida (+2,711)
  • California (+1,682)
  • Iowa (+596)
  • West Virginia (+571)
  • District of Columbia (+115)
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Linda Young – AHN News Writer

London, United Kingdom (AHN) – The outlook for the global labor market is worse for 2012 than it was in 2011 when one in three workers or an estimated 1.1 billion people, either were unemployed or living in poverty, the International Labour Organization (ILO) says.

Findings came from its annual Global Employment Trends 2012 report released this week.

ILO officials said they were more pessimistic because three years of crisis conditions in the global labor market have created a weaker global economy. The ILO called on governments to do more to create jobs.

Calling the situation an “urgent challenge,” the ILO said governments needed to create 600 million jobs over the next decade.

ILO said it expects a sluggish labor market recovery in Southeast Asia because the global economic downturn will hamper domestic growth.

The exception to the gloomy forecast was in Latin America and East Asia where good economic conditions in large emerging economies there are pushing up job creation, the ILO said.

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Linda Young – AHN News Writer

Washington, DC, United States (AHN) – Initial unemployment claims dropped to 352,000 during the week ending Jan. 14, their lowest level in nearly four years.

First time claims for jobless benefits dropped by 50,000 from the previous week’s revised tally of 402,000, according to the U.S. Department of Labor.

The less volatile four-week moving average was 379,000, a decrease of 3,500 from the previous week’s revised average of 382,500.

However, the advance seasonally adjusted insured unemployment rate also dropped. Only 2.7 percent of jobless workers were covered by unemployment insurance for the week ending Jan. 7, a decrease of 0.2 percentage point from the prior week’s unrevised rate.

The total number of people claiming benefits in all programs for the week ending Dec. 31, the most recent week for which data is available, was 7,826,665, an increase of 493,566 from the previous week.

The highest insured unemployment rates in the week ending Dec. 31 were:

  • Alaska (6.9)
  • Connecticut (6.6)
  • Oregon (5.0)
  • Wisconsin (4.9)
  • Pennsylvania (4.7)
  • Idaho (4.5)
  • Rhode Island (4.5)
  • Montana (4.3)
  • New Jersey (4.2)
  • Arkansas (4.0)
  • Illinois (4.0)
  • Washington (4.0).

The largest increases in initial claims for the week ending Jan. 7 were:

  • New York (+29,389)
  • California (+22,168)
  • Texas (+13,946)
  • North Carolina (+7,865)
  • Georgia (+7,225)
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The Media Line Staff

Jerusalem, Israel Felice Friedson and Arieh – Israel Edri is a young Israeli ultra-Orthodox man. He’d like to spend all his day in religious studies. But as the father of two children and a third on the way, life’s challenges have stepped in and today he works in telemarketing.

“Reality hit. If you ask me I’d like to sit and study all day long, but the reality is that you have to get out and work, especially if you want to live in an expensive city like Jerusalem and give your kids what they need,” the clean-shaven Edri told The Media Line.

Israel Edri, 27, is the exception. The vast majority of ultra-Orthodox men in Israel do not work or serve in the army, choosing instead a pious and largely impoverished life of studying religious texts, or Torah, mainly the Talmud. It is not that they cannot find work – Israel’s unemployment rate is at its lowest in decades – rather they do not want to and have none of the education or training needed to be employed.

With birthrates three times the national average, Israel’s ultra-Orthodox communities are mushrooming. Many live on government allowances and private charity and on their wives’ earnings. It wasn’t always that way nor is it a problem among ultra-Orthodox Jews living outside of Israel.

In 1970, 20 percent of working-age men in the ultra-Orthodox community in Israel were not working by choice; today, the figure is two thirds (65 percent). Ultra-Orthodox Jews in the U.S. and Britain traditionally take jobs and their labor force participation rate is the mirror opposite of Israel’s.

Once a tiny minority, ultra-Orthodox Jews, known as haredim, now number about 700,000, or about 10 percent of Israel’s population. And that’s a problem. Israel’s economy can’t afford to have such a big part of the population permanently out of the work force and living on government handouts paid for by the rest.

“By the time you are up to 10 percent of the population of whom 70 percent of the male part of the population doesn’t work, you are getting to a macro-economic issue,” Stanley Fischer, governor of the Bank of Israel, said at a briefing. “This is not sustainable. We can’t have an ever-increasing proportion of the population continuing to not go to work.”

While the burden on the economy was growing, the rest of Israel largely ignored the problem as voters and politicians focused on security issues. But the country’s economic problems, particular the high cost of living and shortage of housing, emerged as a key issue last summer in an explosion of mass protests and tent cities.

In the last month, the growth and increasing extremism of the haredi sector took center stage. A spate of incidents in which girls and women regarded by the most extreme ultra-Orthodox were spit upon and yelled at captured headlines and pointed up the wide gap in lifestyle and attitudes between ultra-Orthodox and other Israelis.

“A haredi town would not be self sustaining. Nobody would pay taxes. Nobody works. Well, hey, this is where [they] are taking the entire country. Do that math. This is a problem,” Dan Ben-David, a Tel Aviv University economist who heads the Taub Center for Social Political Studies, told The Media Line.

Now, a host of organizations are making an effort to quietly reverse the trend towards shunning work by finding ways to integrate haredi men into the workforce. The economic crunch has led to more and more ultra-Orthodox to work for a living, says Motti Feldstein, the director of Kemach, an organization that provides job training and support for haredi men and women learning a trade.

“It’s not a revolution but a change in realities. There’s not more openness to working, but recognition of a changing world,” he told The Media Line.

Kemach means “flour” or “bread,” but is also used in a famous biblical quote saying in defense work (“Without bread there is no Torah”) and is also an acronym for Promoting Haredi Employment. Over the past three years it has helped more than 12,000 haredim with guidance and scholarships.

But Feldstein is keen on stressing that his organization is not luring people out of yeshivas – the academies where religious texts are studied – but only helping those who had already chosen to stop learning full time.

“A rabbi is not going to come out and give a sermon [to go to work]. Everyone has to come to their rabbi and seek his blessing and the rabbi helps direct them. The rabbi’s job is to create a society. It is not to bring money to his community. Everyone is responsible for themselves. They have to decide what is better, to be a schnorrer [beggar], or to go out and work,” he says.

But most ultra-Orthodox have never studied much in math, science, English and other core subjects employers require. Furthermore, many young men have no experience in the job market and conditions. They imagine themselves working few hours and earning high wages even though they have few if any skills. They have been taught that Torah learning is paramount. If they decide to take a job and accept the lower social status that workers have compared to full-time scholars, they prefer to do it discreetly.

Shmuel Gotlieb is an employment counselor at Mafteah, a venture by the Joint Distribution Committee’s Tevet program. He interviews men seeking to get their first job.

“A lot of people come to me and say ‘Give me a place to work where I’m not going to be seen. Why? Because it is unpleasant for me. Because my brother doesn’t know I’m working,’” Gotlieb told The Media Line. “I know a guy who has worked in a high tech firm for three years now and no one in his family knows he’s working.”

The ultra-Orthodox disdain change. Even their dress of black frock coats and wide-brimmed hats harken to 19th-century and speak Yiddish, the language of their Europe forbears. Some economists say their background is so constricted that they can’t supply the needs of a modern economy.

“A Third World economy can’t support a First World army,” says Ben-David of the Taub Center. “We need more and more educated people because we are a more advanced society and we need less and less uneducated. What is happening here is perverse because we are enabling a huge portion of society to deprive their kids of what they need when they grow up and to deprive us as a society of the doctors and engineers and everything else that a modern society needs.”

The Technion, Israel’s top engineering school, has been running a program for the past three years to bring ultra-Orthodox into their civil engineering program. They receive a crash course in core subjects like math, physics and English.

“One of the teachers told me it is like teaching the ABCs at the Technion because they know nothing,” Muly Dotan, director of the center for pre-university studies, told The Media Line.

Out of some 100 candidate discretely recruited from the ultra-Orthodox community, about 30 are chosen annually and receive a hefty scholarship to cover their four-year degree. The first graduates are expected soon and jobs have been earmarked for them, Dotan said.

But Yossi Tamir, executive director of the Tevet employment initiative, counters that despite a lack of formal education, haredi men and women catch on fast.

“It’s very easy for them,” Tamir told The Media Line. “If you are talking about computers, they have a very high ability and capacity of learning those issues. So they can move into technology, computers and mathematics without any problems. Even if they didn’t study it when they were in high school. That isn’t a barrier.”

At Mafteah, they are aiming lower and direct people to training as bus drivers, nurse’s aides, locksmiths and construction workers.

“People are not connected to reality because they are cut off. They’ve never worked and their fathers never worked. They never saw anyone who ever worked and so they don’t have any idea what a working man does. But the moment they understand that a man with a job needs to work, they work,” Gotlieb said.

Still, once they gain a profession, breaking the stigma that they are lazy or untrained is often hard. Itzik Omasky, an electrician, said he hasn’t had good experience with them.

“There aren’t many haredi guys in the profession. But my experience with them hasn’t been good. I took one from Ramat Beit Shemesh and he was awful and split. He ended up quitting because he wasn’t used to working so hard,” Omasky told The Media Line. “He knew his craft, but he told me he could not work so much and at two o’clock had to stop. He was always wanting to take a break. I told him that this wouldn’t work out and he had to work a full day. After 10 days he quit and left me in a lurch.”

Another barrier to their employment is the growing phenomenon in the haredi world of segregating men and women. But like the phenomenon of shunning labor, the rising gender divide is also a modern phenomenon that has little basis in Jewish tradition, says Ben-David.

He points to the well-known New York electronics retailer, B&H, which is owned and operated by ultra-orthodox Jews.

“In New York, haredi men serve non-haredi women. B&H doesn’t have a marker in the door ‘women only’ — ‘men only.’ It’s not part of being haredi. It’s not part of being Jewish. What we are seeing here has nothing to do with being Jewish,” says Ben-David. “They should get used to what modern society is and not the other way around.”

But Ben-David admits that there is a change taking place among the haredi community.

“At the anecdotal level we see more and more haredim who apparently get it and want to get the skills and go to school. There are now haredi colleges where there were none before and there are now haredim going to the army where there were none before and on the face of it this is a good direction,” he says.

Unusually for someone in the ultra-Orthodox community, Matan Nitzky is a volunteer for Israel’s civilian national service as an alternative to the army. He works in the Hatzala emergency medical service, which he hopes will serve as a springboard for a career in medicine.

“My father is a doctor, my mother is a nurse and … it’s been my dream to also one day do that. With the civil service I have the option to fulfill my dream and hopefully one day go down that path,” he told The Media Line.

Israel Edri, the young working haredi father, said that he hopes the stigma that ultra-Orthodox don’t want to work will fade.

“It’s hard to get rid of a stigma,” Edri says. “I believe that after a few years this stigma will go away when they see haredim in many more senior positions.”

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Linda Young – AHN News Writer

New York, NY, United States (AHN) – Swiss drugmaker Novartis says it will cut nearly 2,000 jobs in the United States in anticipation of loss of revenue as its patent protection expires on its blockbuster drug Diovan.

Diovan is a blood pressure medication. It is the company’s top products and brought in more than $6 billion in revenue in 2010, the most recent year for sales data.

However, Novartis (NVS) will lose its patent protection on Diovan in September. That will open the market for cheaper generic production of the drug by competing drug makers, which will cause the price of the drug to drop.

Although Novartis has many other popular drugs that bring in billions, including cancer drugs Femara, Gleevec, Glivec and Zometa and vision drug Lucentis, none of them alone brings in the kind of revenue that Diovan does.

Novartis said the jobs cuts would take place in the second quarter of the year. It will cut 330 jobs at its U.S. headquarters in East Hanover, NJ. as well as reduce its “field force” by 1,630 positions, primarily sales reps. The company employs about 121,000 workers worldwide, including 30,000 in the U.S.

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Diane Alter – AHN News Reporter

Cobb County, GA, United States (AHN) – The “Help Wanted” sign is out at Home Depot.

The home improvement giant announced Thursday that it is recruiting some 70,000 seasonal workers at stores across the United States.

Spring and summer are particularly busy for Home Depot as homeowners rush in to buy plants, patio furniture, barbeque grills, and step up sprucing up their homes.

While the number of temporary openings this year is the same as last, Home Depot will start the hiring process a month earlier, in February.

Plans for permanent hiring, based on sales growth, have not been decided yet.

Shares of Home Depot closed Thursday at $43.99, just shy of its 52-week high of $43.66 a share.

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Kris Alingod – AHN News Contributor

Washington, DC, United States (AHN) – The U.S. Department of Agriculture plans to close 259 offices nationwide as part of a program to cut costs and improve service.

In a statement that coincided with the American Farm Bureau Federation’s annual meeting, Agriculture Secretary Tom Vilsack announced changes to his agency worth about $150 million in savings every year.

The measures, which had been expected, will reduce the agency’s workforce by more than 7,000 employees. Apart from the domestic closures, seven international offices will be shuttered.

The restructuring follows a department-wide review of operations that recommended consolidating 700 cell phone contracts into about 10.

Since 2010, Congress has cut the USDA’s discretionary spending by $3 billion, or 12 percent.

“The USDA, like families and businesses across the country, cannot continue to operate like we did 50 years ago,” Vilsack said. “We must innovate, modernize, and be better stewards of the taxpayers’ dollars.”

Agriculture is the second most productive sector of the U.S. economy, providing one in 12 jobs nationwide and leaving a $42 billion farm trade surplus after producing $137.4 billion worth of exports.

The closures involve offices and laboratories that are either not staffed or are staffed by no more than two employees. Other facilities are located within 20 miles of other offices.

Among those affected are 131 Farm Service Agency offices. In addition, 15 Animal and Plant Health Inspection Service offices in 11 states, and five offices of the agency abroad will be shuttered. The APHIS will be left with about 560 domestic offices and 55 abroad.

Vilsack assured that the quality of service will not be sacrificed with the changes, citing available technology. “American agriculture is currently experiencing its most productive period in history thanks to the resiliency, resourcefulness and efficiency of our farmers,” he said. “As we move forward, USDA will continue to find ways to modernize its services.”

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Linda Young – AHN News Writer

Washington, D.C., United States (AHN) – First time claims for unemployment compensation benefits during the week ending Dec. 31 dropped by 15,000 from the previous week to 372,000, according to the U.S. Department of Labor.

The less volatile 4-week moving average also fell, registering a decrease of 3,250 to 373,250 initial claims.

However, the advance seasonally adjusted insured unemployment rate also fell. It dropped by 0.1 percentage point to 2.8 percent for the week ending Dec. 24, the most recent week for which such data is available.

Analysts say the decrease in filing for jobless benefits is a move in the right direction.

The total number of people claiming benefits in all unemployment programs for the week ending Dec. 17 dropped by 8,311 from the previous week to 7,223,203.

The unemployment rate for December was 8.5 percent.

The largest increases in initial claims for the week ending Dec. 24 were:

  • California (+16,490)
  • Pennsylvania (+6,764)
  • Michigan (+5,632)
  • Kentucky (+5,263)
  • Indiana (+5,084)
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Linda Young – AHN News Writer

Chicago, IL, United States (AHN) – The number of jobs employers cut rose by 14 percent overall in 2011 compared with 2010, although planned job cuts slowed during December.

The yearend total was 606,082 compared with 529,973 in 2010, but still well below the recession peak of 1,288,030 job cuts in 2009, outplacement firm Challenger, Gray & Christmas noted in a statement released Thursday.

The Chicago-based firm said U.S. employers announced only 41,785 planned job cuts in December. That number was the lowest monthly rate since June, but it was 31 percent higher than December 2010 when employers announced 32,004 job cuts.

Nevertheless, the trend is in a better direction with the planned job losses announced in December down 1.6 percent from the job cuts employers announced in November.

In addition, planned job cuts were well below the annual 1,288,030 annual job cuts in 2009 during the height of the recession, the company noted.

“Job cuts in 2011 were dominated by the government and financial sectors. These two alone accounted for 41 percent of all the job cuts announced last year. The 183,064 government job cuts represent a record high for that sector, since we started tracking it in 2002. And, while the financial sector did not come close to its record high, annual cuts for the sector were up 165 percent from 2010,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“Unfortunately, these sectors are likely to continue to struggle in 2012. Washington is under immense pressure to cut spending and it looks like every deal to extend tax cuts, raise the debt ceiling and pass the budget will come with measures to cut spending, which can be expected to result in more job cuts.”

“Additionally, there are still proposals to make massive cutbacks within the United States Postal Service. While its budget is not taxpayer funded, it has been ravaged by the growth of electronic mail. Involuntary layoffs at the Post Office could total as much as 120,000, according to one plan, with another 120,000 positions lost through attrition,” said Challenger.

Moreover, Challenger said he didn’t see much chance of significant improvement in the jobs sector for a variety of reasons. That included the eurozone crisis that will affect banks in the United States, as well as the continued mortgage problem and weak consumer demand that is affecting the retail sector.

“Net job gains picked up at the end of the year, after dipping in the third second and third quarters, but the pace of job creation is still too slow to make a significant dent in the number of unemployed,” Challenger said.

“Job creation is likely to remain slow and steady in 2012. Washington seems paralyzed when it comes to enacting policies that might spur job growth. Even if they were to pass some legislation that could help, the impact is rarely immediate and is typically smaller than anticipated,” he continued.

“In the end, there may be little government can do to jumpstart job growth. It really comes down to demand and, right now, consumers and businesses around the world simply are not spending. So, there is little demand and, therefore, no compelling reason to ramp up hiring,” Challenger said.

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Diane Alter – AHN News Reporter

Washington, D.C, United States (AHN) – It appears that quite a few Americans got pink slips for Christmas.

In the week before the holiday, the number of Americans filing for first-time unemployment benefits rose.

Roughly 381,000 people filed initial jobless claims in the week ended Dec. 24, the Labor Department reported Thursday. That was more than forecast and marked an increase of 15,000 from the prior week when claims dropped to their lowest level since April 2008.

Continuing claims, which include Americans filing for their second week of claims or more, increased 34,000 to 3,601,000 in the week ended Dec. 17, the most recent data shows.

Initial claims tend to be volatile around the holidays, so many economist say not to read too much into the increase. Thursday’s numbers are still well below the level of applications for claims during the same period a year ago.

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