US employers, apparently freezing hiring plans because of Iraqi war worries, announced 42 percent more job cuts in January from the prior month, an industry survey showed Tuesday.
Employers announced 132,222 job reductions in the month, up from 92,917 in December, said a survey released by international outplacement firm Challenger, Gray and Christmas Inc.
"Even if businesses were in a position to hire, many would probably delay such action in light of the uncertainty surrounding Iraq," said the firm's chief executive, John Challenger.
"The threat of war is perhaps the greatest obstacle to economic recovery, as companies simply lie in wait for a definitive indication on whether we will go to war," he said.
January's job cut total was down 46 percent from a year earlier, when the economy was still reeling in the aftermath of the Sept. 11 terrorist attacks, the survey said.
Challenger said it would probably be overly optimistic to expect US President George W. Bush's stimulus package to jump start job creation, given the heavy cuts being planned.
A statement by the Treasury Department said Bush's US$674 billion tax cut package, a core part of the fiscal 2004 budget announced Monday, would eventually result in an extra 1.5 million jobs.
"A war will dramatically affect business conditions, impacting everything from the price of oil and fuel to the ability to transport goods and services overseas," Challenger said. "War will also have a negative impact on consumer buying patterns, including overseas travel. Companies cannot make plans with so many factors in doubt."
A tally of announced job cuts showed the retail sector taking the heaviest blow with 44,087 cuts followed by commodities with 10,241, transport with 9,958 and government/non-profit firms with 8,606.
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