It is no surprise to anyone that the U.S. is formally in a recession.  As 2008 has come to an end and 2009 begins, more and more companies are trying to hang-on in these trying times and to stay in survival mode.  According to the U.S. Bureau of Labor Statistics, in the past six months we have seen the unemployment rate rise from 5.5 % in June 2008 to reach a high of 6.7 % in November 2008 (http://www.bls.gov/eag/eag.us.htm). This is the highest unemployment rate since October 1993.  We are sure to see more layoffs in the coming months and experts are saying the U.S. unemployment rate is expected to reach at least 8 % before the economy starts to improve.

An article published by USA Today states, “The outlook for jobs is probably the worst aspect of the economy in 2009.  Even after the economy stabilizes, job losses will probably continue for a while.” Greg Pitcher of Personnel Today writes, “The global economic crisis will decimate HR departments in 2009.  Two in five major firms will cut HR jobs.  According to the Acceleration of Globalization report by the Hackett Group, 200 global companies in October and November found that 40 % were planning HR staff cuts.  A further 12 % were planning HR recruitment freezes.  In comparison, just 35 % were planning job cuts in IT, 23 % in finance and 18 % in procurement.”  http://www.personneltoday.com/articles/2008/12/08/48667/global-crisis-set-to-decimate-hr-in-2009.html 

If experts are correct, then mid-year we will begin to see a turnaround.  CareerBuilder.com and USA Today published their annual job forecasts, stating, “Looking ahead, recruitment levels are expected to be lower in the new year, but employers are not out of the mix completely; instead they’re taking a wait and see approach to hiring.” 

Reference Links: 

http://img.icbdr.com/images/aboutus/pressroom/2009USForecast.pdf

http://www.usatoday.com/money/economy/2008-12-22-economic-outlook-2009_N.htm