March was 15th Consecutive Month of Job Declines; Layoff Concerns Correlate to Lower Optimism and Company/CEO Ratings

March was 15th Consecutive Month of Job Declines; Layoff Concerns Correlate to Lower Optimism and Company/CEO Ratings

Today’s report on job numbers from the Bureau of Labor Statistics should come as no surprise to those following the news of layoffs closely. March marks the 15th consecutive month of job losses as unemployment rate rose to 8.5%, from 8.1% in February. With these new numbers, there are now 13.2 million people unemployed in the U.S.; that’s 16% of the population currently looking for a job. (If you’re one of those looking for work, check out Glassdoor.com’s career expert Rusty Rueff’s tips on competitive interviewing). 

These ever-rising numbers, however, don’t seem to have the majority of workers worried about their own jobs. According to a recent survey we released yesterday, only 1 in 4 (26%) are concerned they may lose their jobs in the next 6 months. Are workers simply optimistic that things will get better, or is there a bit of denial taking place? While the government believes the unemployment rate will cap at 8.8%, others believe it’s more likely to reach 10% before things begin to turn around, which many believe will not happen until 2010.

At Glassdoor, we’ve certainly seen corresponding rise in layoff chatter in reviews as the unemployment rate has increased. Below are the companies with the highest percentage of reviews using the word “layoff” for companies with more than 100 reviews on Glassdoor.com.

Glassdoor Report: Highest rate of lay-off mentions in reviews

Company Rating

CEO Name

CEO Rating

Percentage of Review
with Lay-off Mentions

AOL

2.9

Tim Armstrong

N/A*

37.60%

Alcatel-Lucent

2.7

Ben Verwaayen

33%

32.40%

Nortel Networks

2.8

Mike S. Zafirovski

17%

31.90%

Sprint Nextel

2.8

Dan Hesse

43%

28.00%

LexisNexis

2.4

Andy Prozes

7%

27.10%

Ford Motor

3

Alan R. Mulally

65%

25.90%

Sun Microsystems

3.1

Jonathan L. Schwartz

25%

23.30%

CSAA Inter-
Insurance Bureau

2.4

James R. Pouliot

13%

25.90%

Charles Schwab

3.3

Walt Bettinger II

33%

18.80%

Motorola

2.6

Greg Brown

10%

17.20%

What we’ve also found is consistent with the recent survey results – employees at companies that have already had layoffs tend to be less optimistic about pay raises and company outlook, and as Glassdoor.com data shows, the higher the layoff chatter rate, the lower the ratings for the company and CEO tend to be. The notable exception in the chart above is Ford Motor Co. where Mulally has a surprising 65% approval rating.

Anyone working for these companies have insights?

Categories: In the News

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