DaimlerChrysler, Ford, and GM's layoffs won't affect US economy, declares government

US Labor Secretary Elaine Chao told press at the World Economic Forum that the job cuts by Ford, GM and Chrysler (the American branch of DaimlerChrysler) were not signs that the U.S. job market was on a downward slide. Said Chao, "Job creation is dynamic, when companies cut their payrolls is not an indication about the state of the economy.”
About 2.5 million new jobs were created in 2005. However, last November General Motors announced it would be laying off upwards of 30,000 people over the next two years, and Ford Motor Co. has just made public its own downsizing plans that involves the "involuntary separation" of up to another 30,000 workers. DaimlerChrysler is also planning to cull 6,000 employees by 2009.

Chao added that any layoffs were the responsibility of the specific companies.

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