Our workers are just too productive *thats* the problem. Employers Unexpectedly Slash Jobs in Aug. By Anna Willard WASHINGTON (Reuters) - U.S. employers cut jobs in August at the fastest pace since March, the government said in an unexpectedly grim report on Friday showing Americans are struggling to find jobs even as other areas of the economy are recovering. The number of workers on U.S. payrolls outside the farm sector slid 93,000 in August, the seventh consecutive month of declines, after dropping 49,000 in July. The number was far worse than the increase of 12,000 expected by economists. The disappointing report supports recent comments from Federal Reserve (news - web sites) officials that interest rates will be kept low for some time. "It's weak and the unemployment rate seems to be more of an aberration than anything else," said Steve Gallagher, economist at SG Cowen Securities. The unemployment rate fell, but only to 6.1 percent from 6.2 percent in the previous month. Analysts had expected the unemployment rate, which is taken from a survey of households, to be steady at 6.2 percent. The payroll data comes from a separate survey of businesses. The dollar fell sharply against other currencies after the report, while U.S. Treasury bond prices climbed higher. Stocks also fell. A recent string of better-than-expected data on retail sales, durable goods, consumer sentiment and housing had led economists to believe the labor market might be starting to improve. Huge advances in productivity, which allows businesses to boost output while laying off workers, are partly responsible for the gap between faster economic growth and a weak labor market. HEADACHE FOR BUSH The number is also like to give ammunition to opponents of President Bush (news - web sites), who say his economic policies have done little to help Americans find work. "This growth is coming without a follow through in employment which is a concern for Bush's hope for reelection next year," said Michael Woolfolk, a currency analyst at the Bank of New York. "This is going to fuel talk by Bush's opponents of a jobless recovery." A weak economy and a jobless recovery was one of the key reasons Bush's father failed to win re-election in 1992. The economy shed jobs in a wide range of sectors in August. Particularly important for Bush's reelection chances are the job losses in beleaguered U.S. factories. Bush is coming under pressure to boost manufacturing jobs, which U.S. industry says are being lost because of unfair exchange rate advantages, most notably in China. Manufacturing jobs fell 44,000, the 37th straight month of decline, while service jobs tumbled 67,000. The Labor Department (news - web sites) said the Aug. 14 blackout, which hit the Northeast United States during the survey week, probably had little impact on the numbers. JOB-LOSS RECOVERY The average workweek was unchanged at 33.6 hours in August. Analysts were expecting the workweek to rise to 33.7 hours. Lack of growth in the workweek is a less than encouraging sign. When companies are poised to begin hiring they often increase the hours of their current staff first. The government said 10,000 people left the labor force, smaller than the drop of 556,000 in July, but still showing some job seekers are discouraged and abandoning their searches. On Thursday, Fed Governor Ben Bernanke, speaking in New York, dubbed a "job-loss" recovery, noting that job losses have been much greater than the "job-less" recovery after the 1991 recession. "The Fed is not about to tighten, or shift policy toward a tightening, with the labor market this weak," said Kathleen Stephansen, director of global economist at Credit Suisse First Boston. The Fed is next due to meet to discuss interest rates on Sept. 16. Bernanke even suggested that if the jobs market remains weak, Fed might even cut interest rates.
Of the seven key indicators of our econony, 6 are pointing towards rebounding growth. Only one (employment) is pointing towards no growth, and it is the lagging indicator. Employment reports have been mixed in the past couple of weeks. Liberals continue to hope for the worst news possible on the economic front. Meanwhile, the Bush Administration advances it's positive agenda. Yesterday, President Bush outlined his Six Point Plan for helping sustain the recent growth in the economy. President Outlines Six Point Plan for the Economy, Saying "We want everybody in this country working." Amid positive news that U.S. productivity is growing faster than expected and consumer spending is on the rise, President Bush went to America's heartland to announce his six point plan to ensure a full economic recovery and create jobs in America. The President has provided bold leadership to end the recession, but new actions are needed to reinforce economic growth and create jobs. His plan includes: Making health care costs more affordable and predictable. President Bush proposes to allow small businesses to pool together to purchase health coverage for workers at lower rates. Reducing the lawsuit burden on our economy. The President's plan will reform class action lawsuits so businesses can focus on creating jobs rather than fighting junk lawsuits. Ensuring an affordable, reliable energy supply. President Bush has proposed a national energy plan that upgrades our electrical grid, promotes efficiency, increases domestic production, and enhances conservation efforts. Reducing government bureaucracy to promote job creation. Too often government regulation discourages, rather than promotes job creation. President Bush is working to streamline and simplify government regulations and reporting requirements. Opening new markets for American products. The President recently signed free trade agreements that open markets to American-made products and level the playing field for American made products. Enabling families and businesses to plan for the future. The President's tax relief is already having positive results for families. His plan will make benefits permanent rather than phasing them out as the law is currently written.
two and half years into his administration HE HAS A PLAN! he hasn't done anything right yet, and this looks to be more of same
I suppose you don't consider 1) Leading us out of an inherited recession 2) Providing leadership for the economy in the face of terrorism 3) Cracking down on corporate malfeasance 4) Working in conjunction with the Fed to provide an accommodative monetary policy through lower interest rates 5) Providing tax relief to a nation in need of consumer spending to be "doing anything right"
I admire Republicans' unwavering allegiance to Bush, especially in the face of overwhelming evidence that he has wrecked the country's economy, security, environment, reputation, fiscal stability and civil rights. Speaking out against the President is tough, but defending him has got to be worse.
Then why are employers *still* slashing jobs? It stands to reason that if the economy really was improving, employers would see that as a sign of growth, and hire more people. Instead they're cutting more jobs than ever.
Economy? He inherited a recession that he has turned around, despite terrorist attacks, the War on Terror, gross corporate malfeasance, and the aftermath of the stock market bubble bursting. It is nothing short of amazing what Bush has been able to do to cure the hangover of the Clinton stock market insanity. Jobs are a *lagging* indicator. They will be the last thing to improve. *Every other* indicator is turning green, a strong signal that the economy is rebounding. The stock markets agree -- we are at 15-month highs right now. Security? Bush has established the Department of Homeland Security, defeated the Taliban, ended the tyrannical regime of Saddam Hussein, and funded a military that was previously neglected under Clinton Environment? Bush has pushed the Clear Skies initiative, and helped put an end to the pernicious Kyoto treaty which does not force developing nations to do their fair share. Reputation? Since when has America ever been the most loved country on the face of the earth? At least our threats are taken seriously now by those who wish to do us harm. Our reputation hit rock bottom after the Clinton scandals. Fiscal Stability? Bush has pushed for tax relief for Americans, and provided liquidity to an economy in need of demand. He has borrowed when times are tough in order to help restore economic prosperity for all. Civil Rights? Bush did his part to end discrimination by attacking the racial quota system in place at Michigan. While this battle was lost, we applaud the President for putting forth a race-blind system in which no American is discriminated against. Bush has also done his part to achieve a proper balance between the rights of citizens and protection against terrorism.
I hope this is a joke, because if it is not then we need to provide you an alternate place to live other than your cave in the backwoods. Being informed can be a good thing.
could it be that people just see things differently than you do? weren't we all expecting a terrorist attack since 9/11? we haven't seen one on US soil...we don't know how many we've prevented....but we know there hasn't been one. Al Qaeda is on the run like they never have been before. you got me on the environment part, because honestly i don't know enough to make an argument back. economy is not something i generally give credit to a president for...but i think TJ is absolutely right when he says Bush inherited a recession. all the pundits, from the left and right, were saying well before the 2000 election that it looked like the next president would be jumping into a downturn in the economy they would likely be blamed for. civil rights -- hmmm..i don't know...does the sodomy ruling count in the civil rights department? what has been retrenched in civil rights that existed prior? what laws have changed?
Economy? He inherited a recession that he has turned around, Interesting. First, the recession didn't start until he was in office. The economy was slowing, but it certainly was not a recession. Second, I thought you didn't believe a President had any significant impact on the economy... Now, suddenly, *he* turned it around? Nice.
You have no understanding of finance if you do not accept that what happened to the stock market in the late 90's was irrational. That type of speculative bubble occurs about once in a generation. The result is always a crash of some sort. There is more to being the Commander-In-Chief than simply providing funds. Bush inspired confidence in our troops, through his open support of them. Clinton's protesting the war in London didn't exactly inspire that same confidence. http://www.epa.gov/air/clearskies/basic.html Here is a summary of the initiative, so that your lies can be exposed. Then why was al Queda so heavily funded during Clinton's tenure? oops. Meanwhile, personal saving as a percentage of disposable personal income was 3.8% in July. In June, the rate was 3.1%, the Commerce Department said. "The basic point is that the tax cut is large enough so even if much is saved, there's still going to be a significant spending impact," Mr. Crandall said. This was a quote from the Wall Street Journal article from a couple of days ago, which praised the tax cuts for helping to spur consumer spending. Hmmm...who should I believe on the economy? The WSJ or a vegan.... Simple choice. Bush and the Patriot Act have asked citizens to make small sacrifices in their lives in order to help protect us from terrorist activity. I doubt many families who lost loved ones on 9-11 are complaining about something as trivial as having their library books monitored.
Originally posted by Trader_Jorge You have no understanding of finance if you do not accept that what happened to the stock market in the late 90's was irrational. That type of speculative bubble occurs about once in a generation. The result is always a crash of some sort. Um, isn't speculation what DRIVES the stock market? When Clinton was in office, stocks kept climbing because people felt confident in the direction the country was going. Under Bush, they're more worried about a terrorist killing them than saving for their kids' college fund. But my meager little brain probably can't handle these big Republican-only issues. There is more to being the Commander-In-Chief than simply providing funds. Bush inspired confidence in our troops, through his open support of them. Clinton's protesting the war in London didn't exactly inspire that same confidence. Wow, so the extent of Bush's influence on the Afghan conflict was cheerleading? What a leader! http://www.epa.gov/air/clearskies/basic.html Here is a summary of the initiative, so that your lies can be exposed. It doesn't refute anything I said. In fact, it buttresses my response. Thanks! Then why was al Queda so heavily funded during Clinton's tenure? oops. Well, I would say because Clinton drove the terrorists nuts, but that would make too much sense. My little brain couldn't come up with that line of reasoning. Meanwhile, personal saving as a percentage of disposable personal income was 3.8% in July. In June, the rate was 3.1%, the Commerce Department said. "The basic point is that the tax cut is large enough so even if much is saved, there's still going to be a significant spending impact," Mr. Crandall said.[/i] This was a quote from the Wall Street Journal article from a couple of days ago, which praised the tax cuts for helping to spur consumer spending. Hmmm...who should I believe on the economy? The WSJ or a vegan.... Simple choice. I'm just a vegan -- I'm not some big fancy trader -- but since 2 percent of the country (Psst! Those who got most of the tax cuts) control more than half the country's disposable income, even your meaningless non-statistic is a little skewed. Bush and the Patriot Act have asked citizens to make small sacrifices in their lives in order to help protect us from terrorist activity. I doubt many families who lost loved ones on 9-11 are complaining about something as trivial as having their library books monitored. So, basically the terrorists were right. We DO have too many freedoms.
it can't be as uninformed as the snugly fitting cavernous depths your head must occupy much of time, Turder_Jorge
MM the problem is we were expecting some serious terrorist activity either in the continental US or abroad. The current administration did nothing to impede this-- in fact they actually ignored warnings from the Clinton administration. The ties of this recession to 9/11 are a direct link to the failures of the Bush administration to heed the warnings and act accordingly. The Bush administration was on guard duty and they failed to protect us from both the 9/11 attack and the economic fallout that occurred afterward. Since then they have been nothing but inept at figuring a way out of this mess other than creating enemies so that defense spending could possibly stabilize the economy. This creates some sort of an out for an administration that is in way over their heads-- fortunately they are failing at this as well.
see...i just don't subscribe to this...because if we want to, we could go back and point the finger at Clinton for not nabbing OBL when he had the chance. there are countless people and institutions we can blame for terrorism besides the terrorists, themselves. fdr is not to blame for pearl harbor, either. is chirac to blame for terrorism in france? is blair to blame for terrorism in england?? is putin to blame for terrorism in russia? the administration was given warning that people wanted to hijack planes and ram them into landmarks...not exactly new news. now how would you have proposed they stopped that ahead of time?
Please dont be fooled by this delusional "trader" who conviently ignores some facts. Ive been doing some research and here is some info that suggests the economy isnt getting better at all and is actually getting worse: #1 Unemployment is near 9 year highs, and data today showed: Nonfarm payrolls tumbled by 93,000, compared with economists' expectations for a 19,000 increase-- The fact is the US is in its 20th month of economic "recovery" without creating jobs, according to the Federal Reserve. Compare that to a normal recession, when there is only a three-month gap between recovery and job creation. If the job picture doesn't improve soon, we could be looking at a double-dip recession. And that would be a harsh blow to both retail sales and stock prices. #2: The recent pickup in consumer spending numbers and retail are very misleading: "The sales boom stems from a few one-time factors, not a fundamental improvement in the economy. For one thing, the ultra-low mortgage rates seen in May and June spurred a huge refinance boom. And rather than just lower their payments, many Americans used their homes as piggy banks when they refinanced. They liquidated their home equity via "cash out refis" and blew that money on cars, clothes, vacations and what-have-you. For another thing, tax rate cuts kicked in July 1 and special $400-per-child tax checks arrived at US homes in late July and early August. Being good Americans, many people blew that cash at the mall, too. " (Dr. Weiss) #3 What has happened to morgage rates as of late?? The interest rates on long term bonds have just suffered the most savage rise in 22 years!! "Now, the refi boom has completely collapsed due to higher mortgage rates and the tax credit checks are ancient history. Meanwhile, that end-of-summer blow-out should soon give way to a chilly economic reality. Higher insurance premiums, rising state and local taxes and sky-high gas prices are canceling out the benefit of lower federal tax withholding. And the employment picture -- something that influences long-term consumer demand -- is terrible. Initial jobless claims rose last week to the highest in more than a month, jumping by 15,000 to 413,000. " #4 Effects of higher mortgage rates: Slowing down the rapid growth of the real estate market-auto sales -2 things that have kept this economy afloat. #5 Last but not least the current rally in the markets: Now if this was a real recovery Earnings would be improving and valuations wouldnt be so lofty. But now we have the exact opposite : The P/E on the S&P500 is higher NOW than it was at the top of the bubble. Does that sound like a recovery. One would think that earnings should improve if business is actually getting better. The fact of the matter is this, "Trader" Jorge is the one who is using old data, which lags the economy. All these slight improvement #'s have the $ from the low mortgage rate numbers in them, and the data reflects info from the past months NOT what is currently happening.
