U.S. Unemployment Rate Still At 10%

[PearlHowardman]

http://www.nytimes.com/2010/01/09/business.../09jobs.html?hp

 

U.S. Job Losses in December Dim Hopes for Quick Upswing

 

By PETER S. GOODMAN

Published: January 8, 2010

 

The nation lost 85,000 jobs from the economy in December, the Labor Department reported Friday, as hopes for a vigorous recovery ran headlong into the prospect that paychecks could remain painfully scarce into next year.

 

“We’re still losing jobs,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. “It’s nothing like we had in the free fall of last winter, but we’re not about to turn around. We’re still looking at a really weak economy.”

 

The disappointing snapshot of the job market intensified pressure on the Obama administration to show results for the $787 billion spending bill it championed last year to stimulate the economy.

 

At a news conference, Mr. Obama acknowledged the December data as a setback, while outlining plans to deliver $2.3 billion in tax credits to spur manufacturing jobs in clean energy.

 

“We have to continue to explore every avenue to accelerate the return to hiring,” the president told reporters.

 

Most economists assume the unemployment rate — which held steady at 10 percent in December — will worsen in coming months. The nation would then confront the highest jobless rate in a generation on the eve of November elections that will determine the balance of power in Congress.

 

Mark Zandi, chief economist at Moody’s Economy.com, forecasts that the unemployment rate will reach 10.8 percent by October. The so-called underemployment rate — which counts people who have given up looking for work and those who are working part time for lack of full-time positions — now sits at 17.3 percent.

 

Mr. Zandi argues that the economy requires an additional $125 billion jolt of stimulus spending on construction projects and aid to state and local governments — a proposal that confronts enormous political challenges.

 

Republicans assert the first dose of stimulus spending has been squandered on dubious projects. The Obama administration, increasingly concerned by the size of federal deficits, is loath to spend more.

 

Mr. Zandi argues that a failure to spend now to spur growth could leave the United States in a bigger hole.

 

“If we don’t do it and we slide back into recession,” he said, “that’s going to exacerbate the deficit even more.”

 

The December jobs report included one encouraging milestone: Data for November was revised to show the economy gained 4,000 jobs that month, compared with initial reports showing a net loss of 11,000 jobs. That was the first monthly improvement since the recession began two years ago.

 

But the December data failed to repeat the trend, disappointing economists, who had generally expected a decline of 10,000 jobs. The report showed continued slowing in the pace of job losses, but it also underscored that companies were reluctant to hire.

 

For a fifth consecutive month, temporary help services expanded, adding 47,000 positions in December. That buttressed the notion that companies required more labor, even as they held off hiring full-time workers.

 

“We’re going in the right direction,” said Michael T. Darda, chief economist at MKM Partners, a research and trading firm. “If we just have a little bit of patience, we’ll start to see monthly increases of 200,000 to 300,000 jobs within six months.”

 

But millions of people still grappling with the bite of the worst downturn since the Great Depression have exhausted their patience — along with their savings and confidence.

 

In Charlotte, N.C., Kumar G. Navile, 33, says he has applied for 500 jobs in the year since he lost his position as an engineer.

 

“You get up every day and say today will be different, but it is mentally challenging,” Mr. Navile said. “I performed well in school. I got a job the day I graduated. It’s been a struggle.”

 

For those out of work, the market is bleaker than ever. The average duration of unemployment reached 29 weeks in December, the longest since the government began tracking such data in 1948.

“There is almost no hiring going on outside the temporary help sector,” said Andrew Stettner, deputy director of the National Employment Law Project.

Despite the parsing of data and contrasting economic forecasts, no complexity cloaked the basic facts of the report: job openings remain scarce.

 

“Most people, they’re not looking at the data,” Mr. Baker said. “They’re just asking, ‘Can I get a job?’ And that’s not getting any easier.”

 

The government’s monthly jobs report, while always important, now stands as the crucial indicator of economic health.

 

...more.

[Magox]

What I found interesting in this jobs report is that 631,000 dropped out of the workforce. As some of you know, the 10% unemployment rate is only tabulated amongst individuals who are either working or looking for a job. The real unemployment rate is at 17.8% when you calculate everyone, except for minors, seniors and disabled folks. The 631,000 people last month is a staggering figure, which tells us that alot of people lost hope last month, and I read somewhere if those people hadn't of dropped out of the workforce that the official unemployment number would of jumped to 10.4%.

 

I expect that at some point in either the 1st or 2nd quarter we'll start gaining some jobs but the risks are the fading stimulus. My guess is that Congress will enact another round of stimulus, mainly to help support state budget falls which are set for another record of deficits. Even when our economy starts gaining jobs, confidence will slowly come back, but I would expect that the unemployment rate will keep rising even though we are gaining jobs. Alot of those people that dropped out of the workforce will slowly start coming back therefore raising the unemployment rate.

[Mr_Blizzard]

And the firings of the Bills front office staff didn't help the unemployment numbers. Maybe we can get some of the 787 Billion dollars to hire some competent coaches. That would help Buffalo become a winning franchise again meaning more ticket and memorabilia sales, and more people parking in front yards near the stadium on game day. It would inject much needed cash into the local economy. Somebody wanna make the call to Obama??

 

[/dev/null]

That damned George W Bush strikes again!

[Booster4324]

That damned George W Bush strikes again!

 

No, if you are going to play it is "Obama bad". I got a hangnail the other day, that damn asswipe Obama is responsible for it. !@#$ing Muslim born in Kenya.

[Alaska Darin]

We probably need to roll out another trillion or so in stimulus, eh liberals?

[/dev/null]

No, if you are going to play it is "Obama bad". I got a hangnail the other day, that damn asswipe Obama is responsible for it. !@#$ing Muslim born in Kenya.

 

If a hangnail is the worst Obama can do, then you should be thankful he's a Muslim from Kenya and not a Witch Doctor From Uganda

[Dave_In_Norfolk]

That damned George W Bush strikes again!

Actually its Jimmy Carter's fault. Well, according to maggot

[Booster4324]

Actually its Jimmy Carter's fault. Well, according to maggot

 

As much as the right-wingers are annoying me, I find your posts to be completely pathetic. Molson?

[Dave_In_Norfolk]

As much as the right-wingers are annoying me, I find your posts to be completely pathetic. Molson?

He said it, I didn't

[Booster4324]

He said it, I didn't

 

I meant your posts in general, not just that one.

[GG]

We probably need to roll out another trillion or so in stimulus, eh liberals?

 

I take it you've been reading Krugman or saw Maddow on Letterman last week.

[ExiledInIllinois]

Now for my rant... You knew it was coming in this thread...

 

Ya... Just wait till a portion of the whole economy of the upper midwest goes down the pooper because some want to stop a fish that is deemed to be undesirable.

 

Me personally, I won't be out of work... But there is going to be a hell of a lot of people I know that will be... Not to mention all kinds of other economic, environmental, and infrastructural impacts that will happen if some get their myopic way.

 

I have to admit, interesting days ahead that I have been looking forward for the last 20 years. This doesn't mean I want bad things to happen... It is just quite a reckoning that people should have seen coming.

[keepthefaith]

http://www.nytimes.com/2010/01/09/business.../09jobs.html?hp

 

U.S. Job Losses in December Dim Hopes for Quick Upswing

 

By PETER S. GOODMAN

Published: January 8, 2010

 

 

The disappointing snapshot of the job market intensified pressure on the Obama administration to show results for the $787 billion spending bill it championed last year to stimulate the economy.

 

At a news conference, Mr. Obama acknowledged the December data as a setback, while outlining plans to deliver $2.3 billion in tax credits to spur manufacturing jobs in clean energy.

 

“We have to continue to explore every avenue to accelerate the return to hiring,” the president told reporters.

 

Shows us how clueless this President is. That and he's so politically handcuffed by his "green" commitment and commitment to unions, he can't see the real opportunity. The real opportunity is this: Greatly reducing our dependence on foreign oil is of strategic and economic importance to this country, regardless of the "green" initiative. At the same time, alternative energy sources that can replace oil are potentially "green" (electricity) or can be domestically sourced (domestic oil, natural gas, ethanol, methanol and coal). The move away from imported oil could quite potentially be the next economic boom for this country. We've got a Department of Energy that was created in part for the purpose of exploring alternative energy sources more tha 30 years ago. A department that has a $30+ billion dollar budget annually. Obama's laterst threat is to use the DOE to further watchdog the polluters. He (and many others) fail to see the bundled opportunity of energy independence and clean energy. My guess is that Americans would widely support an energy independence initiatve that includes greater use of not only wind and solar power but also nuclear power, natural gas, American oil and methanol/ethanol. Americans overall I believe would support the Federal Government in a large investment in the development of emerging energy technologies. Tax incentives for clean energy are nice, but replacing coal powered electricity plants with solar and wind plants does more to shift jobs than create new jobs I'd bet. This President and Congress have a huge opportunity right under their noses and can't see it. The President who sees oil independence and clean energy as one and truly acts to cause a large shift away from foreign oil will IMO be the next American hero. Take a look at Boone Pickens and Anne Korin on youtube.

 

We also as a nation have to seriously address the exportation of manufacturing an other jobs. We have to decide if we are giving up on heavy manufacturing in this country or not. We have to look closely IMO at trade policies and the true economic impact of so many American dollars being exported to other nations that manufacture and support the products we use. As we speak, I know of a very large US corporation that is quietly cutting a significant accounting workforce and replacing it with overseas accounting labor. Where does it stop? At the same time we have an open fukking border to the south with millions coming here illegally, taking jobs, committing crimes and consuming services. We have to stop the madness.

 

Common friggin sense and some REAL SMART LONG TERM ACTION ON JOBS would go a long friggin way rigt now. Instead we've got $800 billion in short term garbage spending that most poeple knew would fail. He we sit watching it fail.

[Magox]

Actually its Jimmy Carter's fault. Well, according to maggot

No you dimwit, Jimmuh Carter.

 

But of course, you'll believe what you WANT to believe won't you?

[Magox]

I take it you've been reading Krugman or saw Maddow on Letterman last week.

If it were up to Krugman, He'd have a $2 Trillion stimulus with the revivial of the Public works program. The guy is intelligent, and I agree with alot of his observations, but Jesus, I honestly don't believe he sees the National Debt as a big risk, I really don't.

 

In regards to Maddow, really? She was talking economics?

[ExiledInIllinois]

If it were up to Krugman, He'd have a $2 Trillion stimulus with the revivial of the Public works program. The guy is intelligent, and I agree with alot of his observations, but Jesus, I honestly don't believe he sees the National Debt as a big risk, I really don't.

 

In regards to Maddow, really? She was talking economics?

 

I agree. Just imagine all the headaches with reviving that (say the WPA). Sadly, it was "easier" to just give it the banks.

[Magox]

I agree. Just imagine all the headaches with reviving that (say the WPA). Sadly, it was "easier" to just give it the banks.

For the record, I was opposed to the Bank bailout. It didn't solve the underlying problem, which was the assets they hold on their balance sheets. If they still have all that **** on the books, and the value of the assets that they are to be lending for aren't rising, then they simply won't lend. Period!

[IDBillzFan]

We probably need to roll out another trillion or so in stimulus, eh liberals?

I touched base at the DailyKos this week to see how they are all discussing this, and you'd be surprised (actually, I was surprised...you probably wouldn't be surprised) at how many liberals consider this good news because it will make it easier for Obama to push through his jobs bill.

[Magox]

I touched base at the DailyKos this week to see how they are all discussing this, and you'd be surprised (actually, I was surprised...you probably wouldn't be surprised) at how many liberals consider this good news because it will make it easier for Obama to push through his jobs bill.

It's like they get a hard-on just with the thought of more government spending.