Job losses deepen Monday blues

Companies all over the world announced thousands of job losses today as a survey among US private sector companies suggests that the situation will only get worse.

Caterpillar, producer of heavy machinery such as bulldozers, announced that 20,000 of its employees will face the sack is it made more than a third less profit for the last three months of 2008.

Six thousand employees will be fired from electronics producer Philips.

In the UK steel maker Corus announced 2,500 job cuts while France is considering a stimulus plan to help airlines purchase planes that will in turn save Airbus.

All these job cuts are affecting both skilled and unskilled workers. This means that there are more unemployed individuals with tertiary education than before. Writing on the Wall Street Journal, Dawn Jordan, former vice president of operations at Bank of America writes:

I know my education will be key in landing my next job, but it didn’t prevent me from losing my last one. And it doesn’t carry any guarantees about the job after that. Given the growing number of intelligent, experienced workers being laid off everyday, I can’t help but wonder, what besides education and experience is needed to increase job security in today’s workplace?

Meanwhile UK Prime Minister Gordon Brown called for a new world order after the crisis. This is already happening with Kuwaiti firm Noor Financial Investments forming ventures with Russian gas giant Gazprom

Botswana enjoys greater economic freedom than Malta – report says

Botswana and Georgia enjoy greater economic fredom than Malta, a study carried by the Heritage Foundation and Wall Street Journal shows.

In the 2009 version of the report released today, Malta is termed as a moderately free economy, classifying 46th from 179 countires with corruption, the size of government spending and taxation seen as hindering Malta’s economic freedom.

From the report:

Challenges to overall economic freedom in Malta include burdensome taxation, a high level of government spending, and rigid labor regulations. 

The report on corruption:

Corruption is perceived as present […] Malta still lacks a comprehensive anti-corruption strategy, as well as appropriate institutions to implement and monitor anti-corruption activities in the public sector and specific areas of law.

The report also shows that Malta’s economy was freer in 2002 than today.

The report also shows that Hong Kong, Singapore and Australia are the most free economies in the world. The UK and Ireland are the only EU states classifying in the top ten with the worst performer for the 27-state bloc being Italy, in 76th place.