Bad Credit Blues

Yahoo personal finance posted its take on the things that employers will cut next in order to cope with slow business and tight credit. Beyond job cuts, 85% of employers expect to cut benefits in order to save money. They may be trying to hold onto more employees by having all employees sacrifice some perks.

Layoffs: We lost 240,000 US jobs in October, and some analysts predict employment may hit 8 - 9 percent by next year.

Hiring Freeze: Just when more Americans are looking for work, less companies will be bringing on new staff as they struggle to contain their own costs.

Higher Health Costs: Expect to pay more for health benefits (again).

Travel Restrictions: It may be harder to get travel approved, and when you do travel for work, expect to fly economy, make more quick trips, and be restricted to a tight budget.

Training Cuts: Company programs to help employees advance may by reduced or cut. These programs do help employees and companies in the long run, but they are epensive, and may be hard to find for the next few months to years.

Parties: The holiday party at a nice hotel may be cut back to pot luck at the office. It’s probably ok, because it will save you from having to purchase an expensive dress or tux anyway.

Salary Freezes, Merit Raise Cuts; It’s like groundhog day for your paycheck!

Pensions: Retirement plans may be reduced, forcing employees to save more for their own future. And of course, with reduced raises, 401k contributions, etc., this will be tough.

Reduced 401k Matches: Most employees provide matching funds for employee’s retirement contributions, but this may be reduced or eliminated.