Tags: jobs

Extreme Poverty at Record Levels

According to the U.S. Census Bureau, a higher percentage of Americans is living in extreme poverty than they have ever measured before.  In 2010, we were told that the economy was recovering, but the truth is that the number of the “very poor” soared to heights never seen previously.  Back in 1993 and back in 2009, the rate of extreme poverty was just over 6 percent, and that represented the worst numbers on record.  But in 2010, the rate of extreme poverty hit a whopping 6.7 percent.  That means that one out of every 15 Americans is now considered to be “very poor”.  For many people, this is all very confusing because their guts are telling them that things are getting worse and yet the mainstream media keeps telling them that everything is just fine.  Hopefully this article will help people realize that the plight of the poorest of the poor continues to deteriorate all across the United States.  In addition, hopefully this article will inspire many of you to lend a hand to those that are truly in need.

Tonight, there are more than 20 million Americans that are living in extreme poverty.  This number increases a little bit more every single day.  The following statistics that were mentioned in an article in The Daily Mail should be very sobering for all of us….

About 20.5 million Americans, or 6.7 percent of the U.S. population, make up the poorest poor, defined as those at 50 per cent or less of the official poverty level.

Those living in deep poverty represent nearly half of the 46.2 million people scraping by below the poverty line. In 2010, the poorest poor meant an income of $5,570 or less for an individual and $11,157 for a family of four.

That 6.7 percent share is the highest in the 35 years that the Census Bureau has maintained such records, surpassing previous highs in 2009 and 1993 of just over 6 percent.

Sadly, the wealthy and the poor are being increasingly segregated all over the nation.  In some areas of the U.S. you would never even know that the economy was having trouble, and other areas resemble third world hellholes.  In most U.S. cities today, there are the “good neighborhoods” and there are the “bad neighborhoods”.

According to a recent Bloomberg article, the “very poor” are increasingly being pushed into these “bad neighborhoods”….

At least 2.2 million more Americans, a 33 percent jump since 2000, live in neighborhoods where the poverty rate is 40 percent or higher, according to a study released today by the Washington-based Brookings Institution.

Of course they don’t have much of a choice.  They can’t afford to live where most of the rest of us do.

Today, there are many Americans that openly look down on the poor, but that should never be the case.  We should love the poor and want to see them lifted up to a better place.  The truth is that with a few bad breaks any of us could end up in the ranks of the poor.  Compassion is a virtue that all of us should seek to develop.

Not only that, but the less poor people and the less unemployed people we have, the better it is for our economy.  When as many people as possible in a nation are working and doing something economically productive, that maximizes the level of true wealth that a nation is creating.

But today we are losing out on a massive amount of wealth.  We have tens of millions of people that are sitting at home on their couches.  Instead of creating something of economic value, the rest of us have to support them financially.  That is not what any of us should want.

It is absolutely imperative that we get as many Americans back to work as possible.  The more people that are doing something economically productive, the more wealth there will be for all of us.

That is why it is so alarming that the ranks of the “very poor” are increasing so dramatically.  When the number of poor people goes up, the entire society suffers.

So just how bad are things right now?

The following are 19 statistics about the poor that will absolutely astound you….

#1 According to the U.S. Census Bureau, the percentage of “very poor” rose in 300 out of the 360 largest metropolitan areas during 2010.

#2 Last year, 2.6 million more Americans descended into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

#3 It isn’t just the ranks of the “very poor” that are rising.  The number of those just considered to be “poor” is rapidly increasing as well.  Back in the year 2000, 11.3% of all Americans were living in poverty.  Today, 15.1% of all Americans are living in poverty.

#4 The poverty rate for children living in the United States increased to 22% in 2010.

#5 There are 314 counties in the United States where at least 30% of the children are facing food insecurity.

#6 In Washington D.C., the “child food insecurity rate” is 32.3%.

#7 More than 20 million U.S. children rely on school meal programs to keep from going hungry.

#8 One out of every six elderly Americans now lives below the federal poverty line.

#9 Today, there are over 45 million Americans on food stamps.

#10 According to the Wall Street Journal, nearly 15 percent of all Americans are now on food stamps.

#11 In 2010, 42 percent of all single mothers in the United States were on food stamps.

#12 The number of Americans on food stamps has increased 74% since 2007.

#13 We are told that the economy is recovering, but the number of Americans on food stamps has grown by another 8 percent over the past year.

#14 Right now, one out of every four American children is on food stamps.

#15 It is being projected that approximately 50 percent of all U.S. children will be on food stamps at some point in their lives before they reach the age of 18.

#16 More than 50 million Americans are now on Medicaid.  Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, approximately one out of every 6 Americans is on Medicaid.

#17 One out of every six Americans is now enrolled in at least one government anti-poverty program.

#18 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.

#19 It is estimated that up to half a million children may currently be homeless in the United States.

Sadly, we don’t hear much about this on the nightly news, do we?

This is because the mainstream media is very tightly controlled.

I came across a beautiful illustration of this recently.  If you do not believe that the news in America is scripted, just watch this video starting at the 1:15 mark.  Conan O’Brien does a beautiful job of demonstrating how news anchors all over the United States are often repeating the exact same words.

So don’t rely on the mainstream media to tell you everything.

In this day and age, it is absolutely imperative that we all think for ourselves.

It is also absolutely imperative that we have compassion on our brothers and sisters.

Winter is coming up, and if you see someone that does not have a coat, don’t be afraid to offer to give them one.

All over the United States (and all around the world), there are orphans that are desperately hurting.  As you celebrate the good things that you have during this time of the year, don’t forget to remember them.

We should not expect that “the government” will take care of everyone that is hurting.

The reality is that millions of people fall through the “safety net”.

Being generous and being compassionate are qualities that all of us should have.

Yes, times are going to get harder and an economic collapse is coming.

That just means that we should be more generous and more compassionate than we have ever been before.

Announced Job Cuts Up 212% from Year Ago

Published on: 10/05/2011
Categories: Current Events
Comments: 4 Comments

Editor’s Note: Yet the BLS will come out tomorrow and maintain there is still job creation going on.

U.S. employers announced the most job cuts in more than two years in September, led by planned reductions at Bank of America Corp. (BAC) and in the military.

Announced firings jumped 212 percent, the largest increase since January 2009, to 115,730 last month from 37,151 in September 2010, according to Chicago-based Challenger, Gray & Christmas Inc. Cuts in government employment, led by the Army’s five-year troop reduction plan, and at Bank of America accounted for almost 70 percent of the announcements.

While the bulk of firings are not “directly related” to economic weakness, they “could definitely be a sign of more cuts to come,” John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. “Bank of America is not the only bank still struggling in the wake of the housing collapse, and the military cutbacks are probably just the tip of the iceberg when it comes to federal spending cuts.”

More reductions will add to the pool of job seekers competing for work as policy makers, including President Barack Obama and Federal Reserve officials, strive to spur the labor market. Payrolls probably didn’t rise fast enough last month to lower the jobless rate, according to a Bloomberg News survey of economists before the Labor Department’s monthly jobs figures in two days.

Compared with August, job-cut announcements climbed 126 percent, the Challenger report showed. Because the figures aren’t adjusted for seasonal effects, economists prefer to focus on year-over-year changes rather than monthly numbers.

Government agencies announced 54,182 reductions in September. Of those, 50,000 resulted from the troop reductions announced by the Army, Challenger said.

Financial Companies

Financial companies announced 31,167 cuts, the second most layoffs. Bank of America, the biggest U.S. lender by assets, said on Sept. 12 it will eliminate 30,000 jobs in the next few years as part of Chief Executive Officer Brian T. Moynihan’s plan to bolster profit. The reductions, equal to about 10 percent of the staff, are part of an overhaul that aims to remove about $5 billion in annual costs by the end of 2013.

Today’s report also showed that employers announced plans in September to hire 76,551 workers, up from 15,201 the prior month, while down from 123,076 in the same month last year. Retailers led the gains, planning to add 70,912 positions ahead of holiday.

September Employment

Employers probably added 60,000 jobs in September as the unemployment rate held at 9.1 percent, according to the median forecast in a Bloomberg News survey of economists ahead of the Oct. 7 Labor Department figures.

The Fed ‘will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability,” the central bank’s Chairman Ben S. Bernanke said yesterday in testimony to Congress.

“Recent indicators, including new claims for unemployment insurance and surveys of hiring plans, point to the likelihood of more sluggish job growth in the period ahead,” he said.

Challenger’s data do not always correlate with figures on payrolls or first-time jobless claims as reported by the government. Many job cuts are carried out through attrition or early retirement. Some employees whose jobs are eliminated find work elsewhere in their companies and many announced staff reductions never take place because business improves. The totals also include foreign affiliates.

Americans Lower Expectations for Making Money

Published on: 06/03/2011
Comments: No Comments

Squeezed on both sides by stagnant wages and rising prices, consumers believe the chances of bringing home more money one year from now are at their lowest in 25 years, according to analysis of survey data by Goldman Sachs.

Goldman’s economist Jan Hatzius looked at the University of Michigan and Thomson Reuters poll, which asks consumers whether they believe their family income will rise more than inflation in the next 12 months. Hatzius applied a six-month moving average to smooth out the data and found that wage pessimism is at its lowest in more than two decades.

“Households are already very pessimistic about future real income growth,” wrote Goldman’s economist to clients. “A slowdown in job growth would presumably translate into a further deterioration in (expected and actual) real income growth. This would heighten the downside risks to our current forecast that real consumer spending will grow 2.5 percent to 3 percent over the next year and might call for another downward revision to our forecast for US GDP growth in 2011 and 2012.”

Real hourly wages have dropped 2.1 percent on an annualized basis over the past six months, a rate of decline not seen in 20 years, according to Goldman. This analysis is backed up by the other most-watched consumer survey from the Conference Board, which indicated earlier this week that the proportion of consumers expecting their incomes to increase was below 15 percent in May.

“I am much more concerned that the second half resurgence we all expect never arrives and by early 2012 we are in a recession,” said Joe Terranova, chief market strategist for Virtus Investment Partners and a ‘Fast Money’ trader.
yield broke below 3 percent Wednesday as investors bought bonds as a safehaven in case of the slowing economy.

The fact that income expectations are so low, makes the jobs outlook that much more important, argues Goldman and other investors. These same surveys show that consumers are not nearly as pessimistic about job growth. So once enthusiasm on the labor front is dented at all, then all aspects of consumer confidence are lost.

“The labor market is particularly important because household finances currently seem even more dependent on job growth than they are normally,” said Hatzius.

A typical recovery pattern goes like this: stock market bottoms, economic growth bottoms and then hiring and wage increases return. What’s unique and scary about this recovery is that the last piece of the recovery is not there.

In the 2001 recession, the country lost 2 percent of jobs from peak employment and then made that back in a 48- month cycle, according to data from money management firm Trutina Financial. In 1990, the jobs lost during the recession were recovered in 30 months. Right now, about 38 months from peak employment during the housing boom, there are still six percent fewer jobs out there. Making up that amount of jobs in 10 months or less would be unprecedented, if not impossible.

“The crawl out of this economic ditch is going to be long and slow,” said Patty Edwards, chief investment officer at Trutina. “Even if they’re employed, many consumers aren’t earnings what they were two years ago, either because they’re in lower-paying jobs or not getting as many hours.”

175K of 244K New Jobs ‘Made Up’

Editor’s Note: The Bureau of Labor Stats who releases the unemployment numbers has an adjustment called the birth/death model, which is a guess of how many jobs new businesses that MIGHT have been created during the month could possibly have created. For April 2011, the adjustment was 175,000, meaning of the 244,000 jobs allegedly created in April, almost 3/4 of them were fictitious in nature and not backed up by any concrete data, polling, or observation. This is all part of the ‘management of expectations’ undertaking by the Fed and our government.

And don’t forget that McDonald’s hired 62,000 workers in April.. Once again, the spin masters will make this come up roses when this report is very suspect.

May 6 (Bloomberg) — The U.S. economy added more jobs than forecast in April, easing concern that higher fuel prices are slowing the economic recovery.

Payrolls increased by 244,000 workers last month, the biggest gain since May 2010, after a revised 221,000 gain the prior month, the Labor Department said today in Washington. Economists projected an April rise of 185,000, according to the median estimate in a Bloomberg News survey. Employment excluding government jobs jumped the most in five years. The jobless rate rose to 9 percent, the first increase since November.

More jobs and rising wages may give households, whose spending accounts for 70 percent of the economy, the means to overcome the highest gasoline prices in almost three years. Federal Reserve Chairman Ben S. Bernanke and some of his colleagues have signaled they plan to forge ahead through June with record monetary stimulus to bolster the expansion.

“The labor market has finally moved into sustainable- growth mode,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “We can expect growth numbers to be positive.”

Stock-index futures rose and Treasuries fell after the report. The contract on the Standard & Poor’s 500 Index expiring in June climbed 0.8 percent to 1,345.4 at 8:44 a.m. in New York. The yield on the benchmark 10-year note increased to 3.22 percent from 3.15 percent.

Range of Estimates

Payroll estimates in the Bloomberg survey of 86 economists ranged from gains of 118,000 to 325,000. March was revised up from a previously reported gain of 216,000, and February payrolls increased 235,000 after a prior estimate of 194,000.

The unemployment rate was projected to hold at 8.8 percent, according to the survey median.

Private hiring, which excludes government agencies, rose by 268,000 in April, more than the 200,000 median forecast in the Bloomberg survey and the most since February 2006, after a 231,000 increase in March.

The separate survey of households showed the size of the labor force was little changed in April and employment shrank by 190,000. That pushed the share of the population in the labor force down to 58.4 percent from 58.5 percent a month earlier.

Government payrolls decreased by 24,000 last month. Local government employment dropped by 14,000.

Factory payrolls increased by 29,000 last month, more than the survey forecast of a 20,000 gain, after a 22,000 rise in March.

Service Employment

Employment at service-providers rose 200,000 in April after a 184,000 gain the prior month. The health care industry added 37,300 workers in April. Construction payrolls rose 5,000 and retail trade employment increased 57,100. The gain at retailers may have reflected the effects of an Easter holiday that occurred later this year than last, making seasonal adjustment difficult for Labor Department.

Some companies are adding workers. Norfolk Southern Corp. is expanding payrolls as the fourth-biggest U.S. railroad benefits from an economic expansion that’s boosting shipping volumes. First-quarter profit excluding some items was $1 a share, topping the 90-cent average estimate from 27 analysts surveyed by Bloomberg.

“We still have a need for additional employees for the business that we’ve got out there,” Mark Manion, chief operating officer of Norfolk Southern, said in an April 27 teleconference. “There is a need to hire for our current business as well as hiring for the growth that’s anticipated in the first — this year and on into 2012.”

Bernanke on Jobs

While payrolls have grown each month since October, Bernanke said on April 27 that central bankers would like to see more strength in the U.S. job market, noting that a recovery has been “quite slow.”

“The labor market is improving gradually,” Bernanke said to reporters during the first-ever press conference following a Federal Open Market Committee meeting. “We would like to make sure that that is sustainable. The longer it goes on, the more confident we are.”

Economic growth slowed to a 1.8 percent annual rate in the first quarter after expanding at a 3.1 percent pace in the last three months of 2010, according to Commerce Department figures.

Regular fuel was $3.99 a gallon on May 4, the highest since July 2008, according to AAA, the nation’s biggest motoring organization. Food costs rose 0.8 percent in March, also the most since July 2008, consumer-price index data from the Labor Department showed last month.

Underemployment Rate

The so-called underemployment rate — which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking — rose to 15.9 percent from 15.7 percent, today’s report showed.

The report also showed a decrease in long-term unemployed Americans. The number of people unemployed for 27 weeks or more fell to 43.4 percent of all job-seekers from 45.5 percent a month earlier.

While companies stepped up hiring, earnings increased. Average hourly earnings climbed to $22.95 in April, today’s report showed, while the average work week for all employees held at 34.3 hours.

Jobless Claims Soar on ‘One Time’ Events

Editor’s Note: Funny, when the numbers go badly, then everything is blamed on one-time events, but when the numbers show what the press wants, then it is a healthy recovery that is causing it. Sure the Japan situation and the auto shutdown might be isolated in nature, however, initial claims have been trending decidedly higher for the past month or so now..

May 5 (Bloomberg) — The number of claims for U.S. unemployment benefits unexpectedly rose last week, pushed up by auto-plant shutdowns and other unusual events that seasonal variations failed to take into account, the Labor Department said.

Applications for jobless benefits jumped by 43,000 to 474,000 in the week ended April 30, the most since August, Labor Department figures showed today. A spring break holiday in New York, a new emergency benefits program in Oregon and auto shutdowns caused by the disaster in Japan were the main reasons for the surge, a Labor Department spokesman said as the data was released to the press.

Even before last week, claims had drifted up, raising concern the improvement in the labor market has stalled. Employers added 185,000 workers to payrolls in April, fewer than in the prior month, and the unemployment rate held at 8.8 percent, economists project a Labor Department report to show tomorrow.

“April seems to have shown a little bit of a slowdown,” Thomas Simons, an economist at Jefferies Group Inc. in New York, said before the report. “We haven’t seen as rapid an improvement in the labor market as we’ve seen in previous months.”

Stock-index futures dropped after the report. The contract on the Standard & Poor’s 500 Index maturing in June fell 0.6 percent to 1,334.5 at 8:37 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year note down to 3.16 percent from 3.22 percent late yesterday.

Exceeds Forecasts

Economists forecast 410,000 claims, according to the median estimate in a Bloomberg News survey. Forecasts ranged from 395,000 to 450,000 in the survey of 46 economists. The Labor Department revised the prior week’s figure up to 431,000 from an initially reported 429,000.

A spring break holiday at schools in the state of New York prompted workers to file claims, which the seasonal adjustment factors didn’t expect last week, the Labor Department official said. In addition, Oregon began a new emergency benefits program for the long-term unemployed that also pulled in some new claimants, he said. Finally, auto plant shutdowns due to parts shortages caused by the earthquake and tsunami in Japan also contributed to the increase, the official said.

The productivity of U.S. workers slowed in the first quarter and labor costs rose as a growing economy prompted companies to boost employment, another report from the Labor Department showed today.

Productivity Cools

The measure of employee output per hour increased at a 1.6 percent annual rate, after a 2.9 percent gain in the prior three months. Expenses per employee climbed at a 1 percent rate after dropping 1 percent.

The four-week moving average for jobless claims, a less- volatile measure, rose to 431,250 from 409,000.

The number of people continuing to collect jobless benefits rose by 74,000 in the week ended April 23 to 3.73 million. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs.

Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 42,900 to 4.12 million in the week ended April 16.

Jobless Rate

The unemployment rate among people eligible for benefits, which tends to track the jobless rate, rose to 3 percent in the week ended April 23 from 2.9 percent, today’s report showed. Twenty states and territories reported an increase in claims, while 33 had a decrease.

Initial jobless claims reflect weekly firings and tend to fall as job growth — measured by the monthly non-farm payrolls report — accelerates. These data are reported with a one-week lag.

Employers announced fewer job cuts in April than the same month last year, Chicago-based Challenger, Gray & Christmas Inc. said yesterday. Planned firings decreased 4.8 percent to 36,490 last month from April 2010.

“Employment has begun to show signs of improvement,” Scott Davis, chief executive officer of United Parcel Service Inc., said during an April 26 call with analysts. “In the U.S., unemployment dipped below 9 percent for the first time in almost two years, further evidence that the recovery continues.”

While payrolls have grown each month since October, Federal Reserve Chairman Ben S. Bernanke said on April 27 that central bankers would like to see more strength in the U.S. labor market, noting that a recovery has been “quite slow.”

Gradual Improvement

“The labor market is improving gradually,” Bernanke said to reporters during the first-ever press conference following a Federal Open Market Committee meeting. “We would like to make sure that that is sustainable. The longer it goes on, the more confident we are.”

Another report yesterday showed employment at U.S. companies increased 179,000 in April, the smallest gain in five months, according to ADP Employer Services.

Federal Reserve Bank of Boston President Eric Rosengren yesterday said record stimulus is necessary to spur the “anemic” economy and that raising interest rates to combat increasing food and fuel prices would impede growth.

“With significant slack in labor markets, stable inflation expectations, and core inflation well below our longer run target, there is currently no reason to slow the economy down with tighter monetary policy,” Rosengren said during a speech in Boston.

Cisco Systems Inc., the largest maker of computer- networking equipment, is among companies trying to cut costs. The San Jose, California-based company last week said it is offering early-retirement packages to some employees in the U.S. and Canada. The company didn’t specify how many workers it expected to take the packages or how much would be saved.

Reich: Beware the Double-Dip

Why aren’t Americans being told the truth about the economy? We’re heading in the direction of a double dip — but you’d never know it if you listened to the upbeat messages coming out of Wall Street and Washington.

Consumers are 70 percent of the American economy, and consumer confidence is plummeting. It’s weaker today on average than at the lowest point of the Great Recession.

The Reuters/University of Michigan survey shows a 10 point decline in March — the tenth largest drop on record. Part of that drop is attributable to rising fuel and food prices. A separate Conference Board’s index of consumer confidence, just released, shows consumer confidence at a five-month low — and a large part is due to expectations of fewer jobs and lower wages in the months ahead.

Pessimistic consumers buy less. And fewer sales spells economic trouble ahead.

What about the 192,000 jobs added in February? (We’ll know more Friday about how many jobs were added in March.) It’s peanuts compared to what’s needed. Remember, 125,000 new jobs are necessary just to keep up with a growing number of Americans eligible for employment. And the nation has lost so many jobs over the last three years that even at a rate of 200,000 a month we wouldn’t get back to 6 percent unemployment until 2016.

But isn’t the economy growing again — by an estimated 2.5 to 2.9 percent this year? Yes, but that’s even less than peanuts. The deeper the economic hole, the faster the growth needed to get back on track. By this point in the so-called recovery we’d expect growth of 4 to 6 percent.

Consider that back in 1934, when it was emerging from the deepest hole of the Great Depression, the economy grew 7.7 percent. The next year it grew over 8 percent. In 1936 it grew a whopping 14.1 percent.

Add two other ominous signs: Real hourly wages continue to fall, and housing prices continue to drop. Hourly wages are falling because with unemployment so high, most people have no bargaining power and will take whatever they can get. Housing is dropping because of the ever-larger number of homes people have walked away from because they can’t pay their mortgages. But because homes the biggest asset most Americans own, as home prices drop most Americans feel even poorer.

There’s no possibility government will make up for the coming shortfall in consumer spending. To the contrary, government is worsening the situation. State and local governments are slashing their budgets by roughly $110 billion this year. The federal stimulus is ending, and the federal government will end up cutting some $30 billion from this year’s budget.

In other words: Watch out. We may avoid a double dip but the economy is slowing ominously, and the booster rockets are disappearing.

So why aren’t we getting the truth about the economy? For one thing, Wall Street is buoyant — and most financial news you hear comes from the Street. Wall Street profits soared to $426.5 billion last quarter, according to the Commerce Department. (That gain more than offset a drop in the profits of non-financial domestic companies.) Anyone who believes the Dodd-Frank financial reform bill put a stop to the Street’s creativity hasn’t been watching.

To the extent non-financial companies are doing well, they’re making most of their money abroad. Since 1992, for example, G.E.’s offshore profits have risen $92 billion, from $15 billion (which is one reason it pays no U.S. taxes). In fact, the only group that’s optimistic about the future are CEOs of big American companies. The Business Roundtable’s economic outlook index, which surveys 142 CEOs, is now at its highest point since it began in 2002.

Washington, meanwhile, doesn’t want to sound the economic alarm. The White House and most Democrats want Americans to believe the economy is on an upswing.

Republicans, for their part, worry that if they tell it like it is Americans will want government to do more rather than less. They’d rather not talk about jobs and wages, and put the focus instead on deficit reduction (or spread the lie that by reducing the deficit we’ll get more jobs and higher wages).

I’m sorry to have to deliver the bad news, but it’s better you know.

Announced Layoffs Rise 20% from a Year Ago

March 2 (Bloomberg) — Employers in the U.S. announced more job cuts in February than in the same month last year, led by a surge at government agencies.

Planned firings increased 20 percent to 50,702 last month from February 2010, the first year-over-year gain since May 2009, according to a report today from Chicago-based Challenger, Gray & Christmas Inc. Announcements at federal, state and local government offices almost tripled from last year.

“More job cuts at the federal level are expected in the months ahead as pressure mounts to cut costs and rein in the soaring national debt,” John A. Challenger, the outplacement company’s chief executive officer, said in a statement.

Dismissals of government workers may contribute to a slowdown in consumer spending, which accounts for 70 percent of the economy. Combined with the highest gasoline prices in two years, the threat of a pause in purchases may already be causing retailers, which had the second-biggest number of announcements last month, to pare payrolls, said Challenger.

“If gasoline tops $4 per gallon in the coming weeks, consumers may be forced to make significant changes to their spending habits,” said Challenger. “At this stage of the recovery, that could be an extremely damaging setback.”

Compared with last month, which saw the fewest firings for any January since record-keeping began in 1993, job-cut announcements climbed 32 percent. Because the figures aren’t adjusted for seasonal effects, economists prefer to focus on year-over-year changes rather than monthly numbers.

Government Firings

Government and non-profit agencies led the February job cuts with 16,380 announced reductions, according to Challenger. Retail firms had 8,360.

Michigan led all states with 6,381 announced job cuts, followed by the District of Columbia, with 5,946.

Today’s report also showed that employers announced plans in February to hire 72,581 workers, up from 29,492 the prior month. The surge reflects Home Depot Inc.’s announcement that it planned to add 60,000 temporary workers, Challenger said.

While touring an Intel Corp. semiconductor manufacturing facility in Hillsboro, Oregon, last month, President Barack Obama said the U.S. must foster a business climate that encourages job creation and assures companies can draw on an educated workforce.

“In a world that is more competitive than ever before, it’s our job to make sure that America is the best place on earth to do business,” Obama said Feb. 18 at the factory.

Hiring Plans

Intel, the world’s largest chipmaker, announced plans during Obama’s visit to build a $5 billion microprocessor plant in Arizona and hire 4,000 employees in the U.S. this year.

Employers hired 193,000 workers in February, and the unemployment rate rose to 9.1 percent, according to the median estimate of economists in a Bloomberg News survey ahead of a March 4 employment report from the Labor Department.

Challenger’s data do not always correlate with figures on payrolls or first-time jobless claims as reported by the government. Many job cuts are carried out through attrition or early retirement. Some employees whose jobs are eliminated find work elsewhere in their companies and many announced staff reductions never take place because business improves. The totals also include foreign affiliates.

Behind the Numbers – Labor Participation

Published on: 02/04/2011
Categories: Current Events, Economics
Comments: No Comments

Editor’s Note: This explains in totality the lower unemployment rate. People are not finding jobs like the media would have you believe, rather, they are falling off the wagon and are no longer being counted in the labor force. This is an awful prognostic indicator, one we’ve been warning about for over two years now.

From ZeroHedge..

At 64.2%, the labor force participation rate (as a percentage of the total civilian noninstitutional population) is now at a fresh 26 year low, the lowest since March 1984, and is the only reason why the unemployment rate dropped to 9% (labor force declined from 153,690 to 153,186). Those not in the Labor Force has increased from 83.9 million to 86.2 million, or 2.2 million in one year! As for the numerator in the fraction, the number of unemployed, it has plunged from 15 million to 13.9 million in two months! The only reason for this is due to the increasing disenchantment of those who completely fall off the BLS rolls and no longer even try to look for a job. Lastly, we won’t even show what the labor force is as a percentage of total population. It is a vertical plunge.

Payrolls Decrease in 28 States; Unemployment Rises in 21

Published on: 12/19/2010
Categories: Current Events, Economics
Comments: 1 Comment

Payrolls decreased in 28 U.S. states and the unemployment rate climbed in 21, showing most parts of the world’s largest economy took part in the November labor- market setback.

North Carolina led the nation with 12,500 job cuts last month, followed by Massachusetts with 8,600 dismissals, and Ohio with 7,800, figures from the Labor Department showed today in Washington. Joblessness increased most in Georgia and Idaho, while workers in Nevada faced the highest rate in the country at 14.3 percent.

The report is consistent with figures on Dec. 3 that showed unemployment increased last month for the first time since August. The Federal Reserve’s pledge to buy an additional $600 billion of Treasuries by June and the $858 billion bill passed by Congress extending all Bush-era tax cuts for two years may help boost growth and cut unemployment.

The report shows “an uneven distribution of improvement with some disappointing results,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit. “We’ve seen pretty clear evidence that demand is starting to improve and with the tax program that was passed last night it should further accelerate. That increased demand is going to pull forward further improvements in employment.”

Leading Index

Another report showed the economy is poised to pick up in 2011. The index of leading economic indicators increased 1.1 percent in November, the biggest gain in eight months, the New York-based Conference said today. The reading matched the median forecast of economists surveyed by Bloomberg News.

After Nevada, the jobless rate was highest in California and Michigan at 12.4 percent, today’s report from the Labor Department showed. Michigan, which is part of the so-called manufacturing Rust Belt, saw its unemployment rate drop by 0.4 percentage point, pushing it to the lowest level since February 2009, as the labor force shrank by 19,500 workers.

Yahoo! Inc., owner of the largest U.S. Web portal, is among companies still trimming payrolls. The firm is cutting about 600 jobs, or about 4 percent of its workforce, part of an almost two-year turnaround effort. The notification process began on Dec. 14 and most of the cuts will come from the product group, said Kim Rubey, a spokeswoman for Sunnyvale, California-based Yahoo.

Unemployment in North Dakota, the lowest in the U.S., was unchanged at 3.8 percent.

November Payrolls

The Labor Department’s Dec. 3 report showed payrolls increased by 39,000 in November, less than the most pessimistic forecast of economists surveyed at the time by Bloomberg News, and the jobless rate climbed to 9.8 percent, the highest since April.

State and local employment data are derived independently from the national statistics, which are typically released on the first Friday of every month. The state figures are subject to larger sampling errors because they come from smaller surveys, making the national figures more reliable, according to the government’s Bureau of Labor Statistics.

Today’s report showed Texas led states with the biggest payroll gains as employers added 19,100 workers. New Jersey was second with an increase of 10,000.

The jobless rate held at 9.2 percent in New Jersey, rose to 8.3 percent from 8.2 percent in New York, and fell to 9 percent from 9.1 percent in Connecticut.

Unemployment in Georgia climbed by 0.3 percentage point to 10.1 percent in November after having fallen in the previous two months. Idaho’s rate climbed by the same amount to 9.4 percent, just short of the almost three-decade high of 9.5 percent reached in February.

Chart of the Day

Published on: 10/27/2010
Categories: Current Events, Economics
Comments: No Comments

Anyone who cares to see who received the benefits of the stimulus needs to look no further….
Stimulus Recipients

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