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April 22, 2009 at 08:00 PM
Cost-cutting measures like layoffs, and hiring and salary freezes at U.S. employers might have finally peaked, according to a survey from consulting firm Watson Wyatt. The news may come as a relief to baby boomers, who statistics find are the longest to be unemployed once they lose their job.
The firm’s recent survey found most companies are planning no further hiring freezes (67 percent), organizational restructuring changes (65 percent) or layoffs (53 percent).
Although the majority are not planning any further salary reductions (89 percent) or salary freezes (76 percent) in the next 12 months, the number that have already made these changes has risen sharply since February. Mandatory shutdowns (24 percent), a reduced workweek (22 percent) and mandatory furloughs (17 percent) have also risen sharply since February.
The survey also found that only one in four employers (26 percent) plans to increase cost-cutting initiatives over the next 12 months, a sharp decline from the 51 percent planning more cost-cutting measures in February. Watson Wyatt’s latest survey includes responses from 141 employers and was conducted in April 2009.
