Jobless Claims Drop in Latest Week in USA

The number of U.S. workers filing new claims for jobless benefits fell to the lowest level since January, but the seasonally adjusted data was distorted by an unusual pattern of layoffs in the automotive industry.

Economists watch the labor market closely for signs that the impact of the most severe recession in decades is fading, and worry that failure to curb unemployment that has spiked to 9.5 percent will thwart official efforts to stimulate growth.

Worst US cities for IT pros

USA is considered as the land of opportunity. The country is the core market for Indian software companies and one of the hot favourite with techies.

However, during the current troubled times not all US cities are likely to be a great workplace for IT pros. Network World has come out with a list of US cities that IT pros probably should avoid. Here's Network World's list of least favorite US technology job locales.

1.Detroit
Topping the list is Detroit. According to Network World, Detroit, the Mecca of automobile companies, can hardly be any IT professional's destination of choice right now. With auto companies and their suppliers struggling to survive bankruptcy and global recession reason is not hard to find. Detroit was also a part of the Forbe's top 10 'Fastest Dying US Cities' list.

2. Bentonville
The second city on the list is US retail giant's headquarter Bentonville.

3.Cleveland
The city of Rock and Roll fame Cleveland is next on the list. The city has witnessed one of the highest foreclosure rates in the US, huge population declines and dying industries of yesteryear, according to the article. Like Detroit, Cleveland too was a part of the Forbes top 10 'Fastest Dying US Cities' listing.

4.Syracuse
Next on the `worst' US city for IT pros list is Syracuse. The city holds the title for the US city with the highest average annual snowfall (115 inches), more than Anchorage, Alaska (114 inches). The city reportedly also has a bit of a problem with Seasonal Affective Disorder (SAD) due to heavy snow and little sunshine.

5. San Francisco & Boston
Here's the city whose entry in the list is sure to raise eyebrows. According to Network World, "These havens for IT geeks and tech companies both offer insanely high real estate prices, suicide-inducing traffic and too many cocky and annoying IT people fighting over precious jobs."

San Francisco also claims the No. 1 spot for worst cities for identify theft, or `iJacking.' And Boston is said to be too full of itself.

6. Anchorage
Anchorage is the next city on the list. The city receives second-highest snowfall in the US.

7. Orlando
Orlando is surely a tourist haven with its theme parks. But the city is surely not a haven for techies. The Network World's authour blames the Orlando's real estate mess and the annual hurricane season for this not-so-favourable title.
Courtesy: NetWorkWorld, IndiaTimes

US private firms shed 473,000 jobs in June, more to come

* US private sector loses 473,000 jobs in June, ADP says
* Loss bigger than expected but smallest since Oct. 2008
* Up to one million more private job losses seen in 2009

U.S. private sector job cuts fell in June to their lowest in eight months, but they still came in more than expected and the economy may be on track to lose another one million workers by year-end.

Private employers cut 473,000 jobs in June, down from 485,000 in May, according to a report by ADP Employer Services published on Wednesday. Economists surveyed by Reuters had expected 393,000 private-sector job cuts in June.

Though June's loss was the smallest ADP had reported since October 2008, the surprisingly large number of cuts dealt a setback to those expecting the U.S. economy to recover soon.

"The data surprises me a little bit in that the consensus out there seems to be that business is improving and that the economy has hit bottom," said Mark Bonhard, investment advisor at Dawson Wealth Management in Cleveland, Ohio.

"This definitely is not good news." After the report, U.S. stock index futures pared their gains, though Wall Street eventually opened higher. U.S. Treasury debt prices initially recovered some ground but were then hit by renewed selling. The U.S. dollar pared its losses versus the euro. The May figure was revised from an originally reported loss of 532,000 jobs.

Gannett cutting more than 1,000 jobs in USA

The country's largest newspaper chain plans to continue scaling back in 2009. Last year, Gannett shed 4,600 jobs and now plans on cutting another 1,000 to 2,000.

Gannett, which publishes USA Today and more than 80 dailies, already mandated two unpaid furloughs this year in an effort to save money. The Wall Street Journal reports that the exact cuts should to be disclosed in the next few days and are not expected to hit USA Today.

Avatech Solutions lays off 41

Avatech Solutions Inc. cut another 41 people from its work force Friday. The layoffs follow a 10 percent reduction in employees in April, when Avatech had about 200 workers. Now it has 146, the company said in a Securities and Exchange Commission filing.

General Motors offers retirement incentives to cut 4,000 more white-collar jobs by year's end

About 4,000 more salaried workers at General Motors Corp. will lose their jobs by the end of the year as the automaker continues to downsize. The company notified its more than 27,000 U.S. white-collar workers by e-mail Tuesday that that it will offer standard severance packages, and employees near retirement age will have the opportunity to retire early, spokesman Tom Wilkinson said.

Some involuntary cuts will be necessary, Wilkinson said, as GM tries to shrink its U.S. salaried work force to around 23,500 by year's end.

MTV Networks lays off 50 staffers

MTV Networks has trimmed the staff of its MTV Music Group and gay-oriented Logo division. About 50 employees were laid off Tuesday, representing 1 percent of MTV Networks' workforce. "The current economic climate dictates we continue to look for more efficiencies in how we run our businesses," MTV said in a statement.

The latest round of layoffs follows the cut of 850 jobs in December when parent company MTV Networks eliminated 7 percent of its work force, with MTV Networks among the most affected.

SunTrust to shift 1,500 jobs to Canadian firm

After nearly a year of studying the possibility of outsourcing some back-office jobs to a Canadian company, SunTrust Banks Inc. said Thursday it signed a 10-year deal that will reduce head count by 1,554 positions, or roughly 5 percent of its 32,323-member work force.

The deal with Symcor Inc., which is headquartered in the Toronto suburb of Mississauga, calls for it to handle check and payment processing as well as statement generation.

Starting Aug. 1, Symcor will take over those operations, and 1,500 of the affected employees will be transferred to its control.

The remaining 54 jobs will be eliminated, SunTrust spokesman Mike McCoy said. However, it's possible those losing their jobs will be offered jobs elsewhere within the financial institution.

The jobs affected are in Atlanta, Baltimore, Memphis, Miami, Orlando, Durham, N.C., and Richmond.

McCoy declined to give the specific number of jobs in each location that are transferring to Symcor, and the company did not characterize the nature of the 54 positions that will be eliminated.

The move is part of SunTrust's long-term strategy to cut costs to deploy money into growing the core banking business. That strategy, dubbed E2 for Excellence in Execution, is pegged to save SunTrust about $530 million by 2009. SunTrust said in May last year it was considering outsourcing those jobs.

Exelon cutting 500 jobs, taking $40 million charge

Exelon Corp. said Thursday it's cutting 500 jobs as it faces "economic challenges confronting all parts" of its business as part of a plan to save $350 million. The Chicago-based power generator expects to carry out most of the job cuts by Aug. 31. Exelon plans to take a second-quarter pre-tax charge of approximately $40 million as part of the program.

BAE To Follow Lockheed Martin On Job Cuts

BAE announced that with the House Armed Services Committee marking up the 2010 Defense Authorization bill without sparing the Future Combat System (FCS) that they will have to cut jobs at their Fridley, MN plant. This is where the actual gun for the Non-Line-of-Sight-Cannon (N-LOSC) part of FCS is made. This is the most advanced of all the many types of vehicles to be built as part of the system and was expected to go into low rate production soon.

While the cancellation of the program has been done the Army and Defense Department are already talking about the next vehicle combat system for the Army. Certainly the technology developed already by the Army to include this gun would be able to be used. The issue with the FCS vehicles was that they did not take into account the fighting in Iraq and Afghanistan. Which makes sense as the requirements for them were probably initiated back around the time of Desert Storm.

BAE says that the plant employs four hundred workers making the cannon and all of them may not lose their job. There is always the possibility that the company can find other work for them or another contract might be won of some sort. The local Congressman, Democrat Keith Ellison, at least throws out that maybe the Federal Government could offer some money for job transition to those who eventually are laid off. It might be cheaper just to buy a few hundred of the system.

Work pressure sees men do overtime, women get fired: Study

With the pressure of work on families increasing day by day, kids may often see their fathers working overtime and their mothers losing their jobs, because they have to juggle official and household chores.

A new study has found that many men these days are pressured to work up to 40 hours of overtime-often unpaid-per week to stay competitive.

Women, on the other hand, work fewer hours on the job owing to their family obligations, and that puts them at risk of demotions or even dismissal.

The findings support growing body of evidence that heightened competition in the workplace, combined with modern business practices, leads to increased levels of overtime that may not even be productive in the long run.

"This clearly does not ease the situation for women and men who want to combine career and family-life. Moreover, a growing body of literature shows that working long hours does not automatically lead to greater productivity and effectiveness, and thus not necessarily contributes to employers' needs but potentially harms the well-being of employees," concluded lead author Patricia van Echtelt and colleagues.

The extensive study looked at the working habits of 1,114 male and female Dutch employees, and found that, among the survey respondents, 69 percent of all men worked overtime versus 42 percent of women.

Women who work overtime do so at a rate that is about one-third lower than that of their male colleagues, which, according to the researchers, is "usually explained by the continuing trend for women to be more involved in unpaid family work."

And even when partners share family chores, "men often characterize their contribution as 'helping' their wives, without feeling to have the main responsibility."

Thus, the researchers predicted that families with more kids and at-home responsibilities would become "more constrained in their opportunities to indulge the 'choice' to work overtime."

Choice is turning into expectation at most companies built upon the "team work" model, with pressures coming from project teams, responsibility for meeting profit or production targets, imposed deadlines and employees left to manage their own careers.

A previous study at a software engineering firm, for example, determined that interdependent work patterns, "a crisis mentality," and a reward system based on individual heroics led to "inefficient work processes and long working hours."

Cornell University's Youngjoo Cha, who led another U.S. data-based study found that if a husband works more than 60 hours a week, his wife is 42 percent more likely to leave her position.

The findings have been published in the journal Gender & Socie

Lockheed warns of job cuts in Silicon Valley

The termination of two defense programs could cost several hundred people their jobs at a San Jose branch of Lockheed Martin Information Systems and Global Services.

Layoff notices have been sent to all 535 employees working on the two programs and layoffs are scheduled for Aug. 10.

But the exact number losing their jobs won't be known for a while, as the company tries to find jobs for as many of the employees as possible in other parts of the company.

So far, 60 people have been placed in new positions, said spokesman David Jewell.

The company issued a statement Monday saying it was unlikely that it would find new work for everyone affected. For those who are laid off, it is offering severance, help finding another job and support from an employee assistance support program.

The reduction in force was triggered by a change in scope of a classified program and the cancellation of the Mission Operations Segment of the $26 billion Transformational Satellite system (TSAT).

TSAT was intended to provide space-based high-speed military communications. It was canceled by Defense Secretary Robert Gates in April. The Air Force followed suit June 8 by canceling the Mission Operations Segment, known as TMOS.

About 120 people work on TMOS for Lockheed Martin in San Jose; the balance of the 535 employees work on the classified program.

Lockheed Martin Information Systems and Global Services is headquartered in Gaithersburg, Md., and employs more than 50,000 globally.

MySpace to slash 30 pct of US staff

US Internet social networking giant MySpace said Tuesday it would cut 500 jobs, nearly 30 per cent of its domestic staff, in a restructuring aimed at boosting efficiency.

MySpace, a unit of media magnate Rupert Murdoch's News Corporation, said it was cutting payrolls "as part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business."

The restructuring plan affects all US divisions of the company and the round of job cuts will lower the domestic workforce to 1,000 employees, it said in a statement.

"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," said Owen Van Natta, MySpace chief executive.

"I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."

Van Natta, who was named MySpace CEO in April, was a chief revenue officer and vice president of operations for Facebook when he resigned from the rival company in early 2008.

Facebook's popularity has soared amid a surge in social networking in the United States.

Facebook was the top social networking site when ranked by total minutes for the month of April, showing a gain of 700 per cent from a year earlier, according to a recent study by Nielsen Online.

MySpace was in second place, with its total minutes declining from 7.3 billion in April 2008 to 5.0 billion in April 2009.

FAQs: H1B Workers and Layoffs

Courtesy: murthy.com
Question 1. I am in H1B status, but I also filed my I-485 and received an Employment Authorization Document (EAD). Do I need to maintain H1B status, or can I just rely upon my EAD?

It is permissible to rely upon the EAD. However, it is advisable to maintain H1B status if possible. The level of risk when relying upon the pending I-485 and EAD depends upon the specifics of the case. The risk is much greater if the employer's I-140 petition has not been approved. Some of these matters were addressed in articles on AC21 "green card" portability, available on MurthyDotCom.

Question 2. I was laid off a month ago and my company has informed me that it sent U.S. Citizenship and Immigration Services (USCIS) a letter revoking my H1B petition. What happens if I find another H1B employer in the meantime?

The USCIS typically takes several months to process H1B revocation notices. The revocation does not prevent the approval of an H1B by a new employer, although the ability to extend H1B status in the U.S. is affected by whether or not the individual is maintaining H1B status at the time the new employer files its H1B petition.

As a practical matter, the revocation of the H1B may not appear in the USCIS system immediately. However, this is a matter of procedure and not official policy. It is necessary to make efforts to find another job as soon as possible and have the new employer sponsor another H1B promptly. The USCIS will review the proof of status submitted with the new employer's case. This is normally in the form of current pay stubs. If there are not current pay stubs as proof of continuing status, it may not be possible to obtain an extension of stay (reflected in an approval notice with an I-94 at the bottom.) Thus, the new employer's H1B petition may be approved, but with an instruction to depart the U.S. and request a visa at a U.S. consulate. In this event, it would be necessary to travel abroad, obtain a new H1B visa at the consulate (if needed), and obtain a new I-94 card at the Port of Entry.

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Question 3. I have an H1B petition with Company B and was just laid off. I have an H1B petition through Company A, where I used to work, which has not expired. Company A would like me to come back to work for them. They did not revoke the H1B petition when I left. Can I go back to work for Company A?

Potentially, yes. Under a USCIS opinion letter, it is permissible to return to work for employers with "dormant" H1B petitions and maintain status in that fashion. This may create issues for the employer, as employers are required to pay H1B employees, unless they are terminated. Therefore, Company A in this situation was required to revoke the H1B petition upon the termination of employment. By hiring the employee again later, there is a potential for the Department of Labor to enforce payment of back wages. (Of course, this potential also exists when the H1B petition isn't terminated, even without rehiring the employee.) This is an employer matter. Employers in this situation should consult with their immigration attorneys to protect their interests.

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Question 4. If I am being laid off, can I apply for some other status?

In certain circumstances, it may be possible to apply for another status. There are a number of different options. Depending upon one's individual circumstances, s/he may qualify for another category. The most direct option, if it is available, would be as a dependant of one's spouse. This is potentially possible if one has a spouse who holds an independent nonimmigrant status, such as her/his own H1B, L1A or L1B. This may permit a change to H-4 or L-2. The L-2 is particularly beneficial, since it allows one to request employment authorization.

Some individuals apply for student status (F-1), if they wish to return to school to further their educations. This can be a good option, as people often choose to enhance their skills during difficult economic times. There are those who may choose to depart the U.S. and look for options in their home countries or elsewhere. These individuals may be eligible to apply for changes of status to tourist (B-2) in order to wrap up their affairs in the United States.

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Question 5. If I apply to change my status, is it then possible to revert to H1B if I find a new employer?

Generally, yes. It can be a bit complex and confusing if the first request to change status is not yet granted. It is generally best not to have multiple applications or petitions filed in parallel. These issues of coordination of filings should be discussed with a qualified immigration attorney.

It is normally possible to change, for example, from H-4 status back to H1B, if one is eligible for more time in H1B status. The change to H-4 or any other interim status does not subject the individual to the H1B cap. The same is true of changing back to H1B after completion of studies as an F-1.

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Question 6. What happens if I am terminated but the company keeps me on as an employee without pay?

It is extremely unlikely that USCIS will consider a person as being “in status” when s/he is not actually employed and being paid. This is a dangerous option to pursue, both for the individual and the company. When applying for a change or extension of status, it is expected that one's current status is documented by recent pay stubs. Without these, the USCIS is unlikely to regard one as having been in status. It may, in this situation, be possible to obtain an H1B petition approval for consular processing, rather than as an extension or change of status in the United States.

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Question 7. If the company gives me a severance package that includes receiving pay for two months or more after I am laid off, am I still considered terminated and therefore “out of status” during those months?

According to a legacy INS memo on the subject, H1B workers are considered out of status from the day they stop working. It makes no difference that they may still be receiving pay. However, status is normally shown through pay stubs submitted with the new employer's H1B petition. As long as there is no misrepresentation of the situation, since the USCIS often overlooks brief gaps in pay stubs, it may be possible to obtain an extension or change of status during a period when one is receiving severance payments.

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Question 8. Can I still file for an H1B "transfer" one month from the time I was laid off? What about four months from the time I was laid off? I do not have recent pay stubs.

Technically, H1B status ended upon termination of the position. Since H1Bs are not "transferred," however, the fact that one does not hold H1B status does not prevent obtaining approval of an H1B petition through a new employer. USCIS regulations prohibit the change or extension of status for individuals who are out of status (with limited exception for certain unusual situations). Status for H1B workers normally is demonstrated via pay stubs. However, the USCIS is sometimes a bit flexible and will overlook minor gaps in status when making decisions regarding these cases. If the gap in status is too great, the employer may be able to obtain the approval of the H1B petition, but it will not be accompanied by an I-94 authorizing additional time in H1B status in the U.S. It will be approved for consular processing outside the U.S. This means that it becomes necessary to leave the country, make application for an H1B visa at a U.S. consulate (if needed) and obtain an I-94 card upon reentry. If there have been extended periods without status, this may create problems in obtaining a new visa at the consulate. There are also matters of bars on reentry to the U.S. for individuals who were unlawfully present in the United States for extended periods. Thus, the importance of having each situation analyzed by an experienced and qualified immigration attorney, who can assess these risk factors, cannot be over stated.

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Question 9. I was recently laid off and was told that my employer is obligated to continue paying me until the USCIS revokes the petition. Is this true?

According to Department of Labor (DOL) Regulations, an employer must continue to pay the H1B worker until there is a “bona fide” termination of the employment relationship. There are various cases interpreting the precise expectations in different ways. Employers would be well advised to put terminations clearly in writing, and take all necessary internal steps within their organizations. They must also request revocation of the H1B petition in a timely manner, and comply with the return airfare obligation. As it can take several months for the USCIS to act on a request to revoke, employers generally do not continue wages awaiting this action. An employer usually notifies the employee of the termination date, and continues payment only for the length of any standard company notice or severance pay policy.

Conclusion

The U.S. economy suffers downturns at times that are followed by periods of relative prosperity. Even financial experts do not seem to know how long the economy will struggle before there is a recovery. While difficult for everyone, such conditions can be particularly stressful for foreign nationals in employment-dependent immigration statuses. We at the Murthy Law Firm will continue to guide our readers so that they can manage their immigration through these trying times.

MySpace prepares for 'massive' layoffs

News Corp's MySpace refused to comment on Thursday on a report the previous day that said the online social network will fire a "massive" number of employees.

The online social network is preparing to lay off as many as 500 of its 1,600 workers, a tech blog reported on Wednesday, as it cuts costs while trying to stay ahead of growing competition from rival Facebook.

MySpace is part of Fox Interactive Media, which houses some of News Corp's online properties. News Corp last month ousted co-founder and Chief Executive Chris DeWolfe and has shaken up management elsewhere in its digital operations.

"Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure," a MySpace spokeswoman said in a statement.

"It's no secret that we are looking for ways to improve our products, increase the value of our digital assets and enhance the overall financial strength of the company," the statement said.

The TechCrunch report comes after the Los Angeles Times reported on June 6 that Fox Interactive Media canceled a plan to move to a 420,000 square-foot office space in Playa Vista, California.

The company had committed to a 12-year, roughly $350 million lease, the Times reported, adding that it was backing off the move because of its financial difficulties.

MySpace's statement to the Los Angeles Times about the Playa Vista building was the same statement that it sent to Reuters regarding the layoffs.

News Corp's $580 million purchase of MySpace's parent company in 2005 was considered among analysts and media experts as a brilliant move by Murdoch to enhance the media conglomerate's digital portfolio.

Since then, advertising revenue has deteriorated and Facebook and Twitter have surpassed MySpace in buzz and popularity in the technology and media worlds.

A search and advertising deal with Google Inc will expire in July 2010, and it is unclear whether the two sides will renew. MySpace derives $300 million a year from that deal, and most Wall Street analysts believe there is no chance that Google will forge a deal on similar terms.

News Corp shares rose 11 cents, or 1.05 per cent, to $10.62 on Nasdaq at mid-afternoon.

Intuit lays off 300 workers

Intuit Inc., the company that makes TurboTax software, said Friday it was laying off 300 employees, or 4 percent of its 8,200-strong work force.

It said the move was not material to its earnings results. About half of the workers are based at its Mountain View headquarters, with the rest spread around other Intuit locations. Employees were given 60-day notifications.

"We manage our resources on an ongoing basis," it said in a statement. "These changes support our long-term growth strategy."

Shares were down 10 cents to $27.79 in after-hours trading after rising 26 cents to close the regular trading day $27.89.

For the fiscal third quarter ended April 30, Intuit said profit rose to $484.8 million, or $1.47 per share, compared with $444.2 million, or $1.33 per share, in the year-earlier period.

Adjusted for discontinued operations and other items, operating income rose to $837 million, or $1.68 per share.

Revenue rose to $1.43 billion, up 9 percent from $1.31 billion last year.

Analysts polled by Thomson Reuters, on average, expected profit of $1.61 per share, on revenue of $1.42 billion. Analysts typically exclude one-time items from their estimates.

Job cuts in US fall in May, but may rise after summer: Report

Job cuts announced by US employers fell for the fourth consecutive month in May to over 1.1 lakh, recording a 16 per cent dip from layoffs announced in April, but the decline could be shortlived as downsizing may pick up pace after the summer months, a report has said.

US employers announced 111,182 planned job cuts in May as compared to 132,590 layoffs in April. While May marked the fourth consecutive decline in monthly job-cut announcements, the layoffs were 7.4 per cent higher than the same month a year ago.

So far this year, employers have announced 82 2,282 job cuts, more than double (109 per cent) the 394,193 announced through this point last year, global outplacement consultancy firm Challenger, Gray & Christmas said in its monthly job cuts report yesterday.

Since reaching a peak of 241,749 in January, job-cut totals have fallen by an average of 17.5 per cent per month.

But the firm predicted that job cuts may pick up pace again by the third quarter of this year and the decline in job cuts could be short-lived.

"The second quarter is typically the lowest quarter of the year when it comes to job cuts. Corporate downsizing may continue to remain slow during the summer months, but if the past is any indication, we could see the pace accelerate again in the latter half of the third quarter through the end of the year," Challenger, Gray & Christmas chief executive, John Challenger said.

15 per cent jobless in 13 US cities: Report

Thirteen American cities saw their unemployment rates topping 15 percent in April with nine of the highest in California alone. In another 93, joblessness climbed above 10 percent, according to a new government report.

Nine of the baker's dozen are in California, a state ravaged by the housing meltdown and an unparalleled state budget crisis. By comparison, only seven cities reported unemployment rates above 10 per cent in April 2008, the Labour Department said in its report released Wednesday.

April 2009 was the fourth consecutive month that unemployment rose in all of the nation's 372 metropolitan areas compared with the same month in the previous year, the report said.

The Bureau of Labour Statistics (BLS) releases monthly metropolitan-area data, lagging behind national unemployment statistics which this month showed the jobless rate was 8.9 per cent in April. A new nationwide report for May comes out Friday.

The April report is slightly better than March's survey, which said that 109 metropolitan areas reached unemployment rates of 10 per cent or higher, with 18 of those at 15 per cent or more. The data is not seasonally adjusted, and that could account for some of the difference, the BLS said.

El Centro, California, continued to have the highest rate of any metropolitan area at 26.9 per cent. The town is located near the Mexican border and relies on agricultural employment, according to economists. As a result, the area's jobless rate tends to rise and fall depending on the farming season.

For areas with one million or more residents, Detroit was the worst hit, posting a rate of 13.6 per cent. Portland, Oregon, showed the largest increase, jumping to 11.6 per cent from 4.7 per cent in April 2008.

The least affected of the big cities was New Orleans, at 5.3 per cent. At 3.2 per cent, Iowa City, Iowa, reported the lowest overall rate in the country.

The number of metropolitan regions that had unemployment rates under 7 per cent dropped sharply to 117 from 347 in April 2008. Only 31 areas reported unemployment rates below 5 per cent in the current report.

A total of 33 metro areas registered unemployment rates that were at least 6 percentage points higher than a year ago, and another 44 areas' increases were 5 to 5.9 per centage points.

US private sector axes 532,000 jobs in May

US private employers chopped more than half a million jobs in May, signaling job conditions remain tough and dashing some hopes the
economy was not deteriorating as rapidly as thought, a report on Wednesday showed.

US companies axed 532,000 jobs last month, though this was fewer than the revised 545,000 jobs lost in April, according to the ADP National Employment Report.

The April figure was originally a decline of 491,000.

The median forecast of economists surveyed by Reuters for the ADP Employer Services report, jointly developed with Macroeconomic Advisers LLC, was for a loss of 520,000 private-sector jobs in May.

The ADP job reading is seen as a predictor of the government's monthly payroll figure. The Labor Department will release its May employment report at 8:30 a.m. on Friday.

The median forecast for the government payroll figure was a decline of 520,000 in May, compared with a 539,000 drop in April.

ESPN cuts about 100 jobs, expects to create others

ESPN has notified about 100 employees in the state that they will be losing their jobs. The layoffs are part of a plan announced by ESPN Chief Executive George Bodenheimer in January, when he told employees the sports television giant would be reviewing its entire operation and also would leave about 200 vacant jobs unfilled.

Company spokesman Josh Krulewitz says ESPN plans to replace the jobs that have been cut with others that "more effectively grow our company, and our head count number, ultimately, will remain consistent with current levels." ESPN, a subsidiary of the Walt Disney Co., employs about 5,400 people worldwide, including about 3,400 at its Bristol campus.