EMPLOYMENT DATA: WHAT'S GOING ON?

Abstract

ONE OF THE BIGGEST PIECES OF news in the past year has been the response of chemical companies to the moribund economy— streamlining of operations, closing of plants, and cost-cutting programs, all of which have a negative effect on employment. In recent months, DuPont said it would shed 6,800 employees; Dow Chemical, 4,500; PPG Industries, 1,500; and Rohm and Haas, 1,200, to name a few. Planned reductions at these four companies alone total 14,000 employees. In addition, there have been numerous plant closings and other company announcements affecting fewer than 1,000 employees. But when one looks at the employment data from the Bureau of Labor Statistics for the chemicals and allied products industry, these large reductions in force are not readily apparent. In fact, the government data show that, in August, total chemical industry employment on a nonseasonally adjusted basis was down a mere 2,500 employees from a year ago to 1,039,400. And in July, ...