Friday, March 30, 2012

Lim 1/n, n->∞

So we have come to this.. US Airways eliminating 15 jobs here is now newsworthy. That says a lot. See today in PG: US Airways makes more Pittsburgh personnel cuts

I think I will just repost this from an previous post on the history of US Airways employment in Pittsburgh.   All the more important when you ponder any current employment stats.  In the data on non-farm jobs out today for February, it is an all time high for employment in a February in the region except for February 2001.. which was a period of exceptional construction in the region and before the major downsizing of airport jobs here.  If the airport jobs were put back in, along with the obligatory induced and indirect jobs that went along with them, and what would current employment counts look like I wonder. 

Anyway, below is from a January 12, 2011 post: I didn't know they had 90 jobs left to cut :


File today's news in the "sure bet" file. Big bet it was. The thing is... all those IRR NPV calculations on the cost-benefit of allthose subsidies? Just a tad off in their assumptions I bet. Folks have begun to forget the late 1990's when support of USAir(ways) and airport based economic development was the key economic strategy for the region and remained so for much of that decade. Maybe we should file it all under "industry targeting". My inner Libertarian might superficially point out a correlation between the escalation of local subsidies and the airline's local demise. The simpler truth may just be that the bigger they are, the harder they fall.

News references to USAirways employment in the Pittsburgh region

1981: "more than 4,500"
1987: "more than 7,000"
1989: "9,600"
1990: "11,500"
1991: 11,900
1992: "about 14,000" (I think that refers to the state)
1994: 12,000
1995: 11,382
1996: 11,287
1997: 11,739
1998: 12,000
2000: "11,700"
2001 "12,000 locally"
2002: "about 9,000"
2003: "close to 9,000"

2005: "more than 7,500"
2006: "2,847"
2007 "about 2,700"
2007: "just 2,000"
2008: "about 1,800"

2010: "about 2,020"

Hey, look... we're trending up. Let's extrapolate that. Better yet, let's put a quadratic on that.


Anonymous Anonymous said...

Let's hope Dan O does a better job with Highmark than he did with USAir.

Monday, April 02, 2012 9:24:00 AM  

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