Category

Unemployment

Government shutdown

10 Shocking Ways the Government Shutdown Puts Us in Danger

It's Day 4 of the government shutdown – which means Day 4 of your life being more dangerous than it was in September…

You see, besides the effects of 800,000 workers being furloughed, the government shutdown affects the general public in ways most of us don't realize.

Some are downright scary.

Here are 10 you should know now:

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U.S. Economy

The "Part Time-ification" of America: How We've Been Conned Again

By now, you've had a few days to digest the "wonderful" jobs numbers reported from Washington last Friday.

Well, don't get too excited about the economy. We've been conned again.

First off, 59% of all jobs created this year are in 3 sectors: Leisure/Hospitality, Retail Trade and Administrative/Waste Services. Wages in those sectors have fallen by 0.7%. These jobs pay an average of $15.80 per hour versus the $23.98 average hourly wage. Which means "jobs creation" just equals cheaper labor.

The American jobs participation rate is at 34-year lows and falling, as people give up and leave the workforce.

Underemployment is between 14% and 15% and rising.

Jobs

July Jobs Report Confirms These Major Problems with U.S. Employment

The July jobs report brings the total number of part-time jobs created this year to more than three times the amount of full-time jobs added.

Welcome to America: Land of part-timers…

The trend was pronounced in June when data revealed part-time jobs grew by a robust 360,000 and full-time jobs declined by 240,000. Friday's July jobs report was further proof.

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U.S. Economy

Why Companies Aren't Hiring Now

The stock market was rattled on Tuesday by underperforming manufacturing data.

The Richmond Federal Reserve Index, which measures manufacturing performance in the upper Southeast and mid-Atlantic regions, fell to -11 in July, down from a 7 in June. This signals a significant drop in new orders and shipments.

This comes just a week after the Philadelphia Federal Reserve Index reached a two-year high, which had rallied the market. Such a drastic swing in confidence in the manufacturing sector suggests that uncertainty will stretch into the late summer.

The data comes at a pivotal time for the Obama administration. For the eleventh time in his presidency (by ABC News' count), Obama announced that he will pivot back to the economy in an effort to create jobs, with a strong emphasis on U.S. manufacturing.

Even though the New York Stock Exchange (NYSE) recently touched all-time highs, American companies are reluctant to hire, particularly with greater uncertainty on the horizon. Perhaps if the President wishes to create new jobs, the administration should address the primary reasons why companies are not hiring in ways that would reflect strong economic growth, as the markets falsely reflect.

Here are five reasons why companies are not hiring right now.

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Economic Indicators

The Four Most Rigged Economic Indicators

On August 2, the Bureau of Labor Statistics will report the official unemployment rate. But this number doesn't tell the accurate story of the jobs picture here in the United States.

That's usually the case with government-produced economic indicators. Whatever the government figure will say, it will not truly reflect reality. Simply put, it's a rigged number.

When it comes to cheating the numbers, nobody does it better than Uncle Sam.

U.S. investors rely on accurate government data in order to make investment decisions in various sectors of the economy.

But what if these figures reflected negative headlines on a near-constant basis? It wouldn't instill much confidence. And it certainly would cost a lot of people in Washington their jobs.

That's why Uncle Sam plays games with the numbers and presents a far rosier picture of the world to low-information voters and investors. But we're paying attention here at Money Morning, and that's why we're holding a spotlight on the fuzzy math in Washington.

Counting down, here are the four most rigged government statistics in America today:

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How Helicopter Ben Helps Jobs and, Inadvertently, Gold Prices

The world's central bank leaders continue to spike the monetary punch bowl, with investors imbibing on gold once again.

This flurry of gold buying prompts many curious investors and doubting media to ask me two questions: 1) How can demand for gold and gold stocks continue; and 2) How high can gold prices go?

To answer these questions, we need to look at the intentions behind the economic and political decision-making across several developed countries, analyze the causes, the effects, and the possible ramifications.

For example, one of the most debated topics today is America's ongoing unemployment situation.

Job loss has affected the lives and pocketbooks of millions of Americans and our friends and families, culminating to a center-stage position in the election this year. All eyes turn to President Barack Obama and Mitt Romney to explain how each intends to create jobs.

During the two years following the Great Recession, Americans lost jobs at a similar rate to the employment losses during the Great Depression and in Finland after 1991. But two years after the crisis, U.S. employment losses stopped and reversed direction.

Compare this to the situations in Norway, Spain, Finland and Sweden, each of which had prolonged unemployment.

After Norway's financial crisis in 1987, it took 8.5 years to return to the country's employment peak. It took 13 years for Spain's employment to return to its 1997 peak. For Finland and Sweden, it took more than 17 years following their 1991 peaks.

Although the job losses in the U.S. don't seem as dismal, "Helicopter" Ben Bernanke wants to avoid Europe's and Japan's catastrophic situations.

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The Good the Bad and the Ugly Truth about the JOBS Act

It's about jobs.

I'm not just talking about the upcoming election and who is promising to do more to stimulate the economy. The entire future of America depends on job creation.

There are good and bad reasons why there aren't enough jobs.

Jobs have been lost because of advances in technology. Jobs have been lost because they've been outsourced.

Jobs aren't being created because banks aren't readily lending to entrepreneurs and businesses, and entrepreneurs and businesses supposedly aren't hiring because there are too many regulations and the future is uncertain.

All the reasons why there aren't enough jobs in America can be argued from both sides. And, while that's being done, arguing isn't doing anything for the unemployed.

Fortunately, there is a light at the end of the tunnel.

There is a pathway open, and hopefully soon to be widened, that bypasses all the arguments and does what our bickering partisan politicians can't do, create good jobs in areas where American ingenuity has always outshined the rest of the world.

The Promise of the JOBS Act

The Jumpstart Our Business Startups Act or JOBS Act was signed into law on April 5, 2012 and is the single best hope America has of regaining its preeminence in the world.

The JOBS Act has good, bad and ugly elements…

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Recession 2013 Looks More Likely After Weak Jobs Report

Every politician promises "more jobs" for the American people. This has been the foundation of virtually every speech at the conventions for both parties.

But what we really need are "more quality jobs" – especially if we want to steer the country away from Recession 2013.

Unfortunately, quality jobs don't seem to be around.

Last Friday's U.S. jobs report showed that only 96,000 new jobs were created in the United States in August when 130,000 were expected. That's dismal enough, but a closer look at the numbers shows just how bad U.S. unemployment is.

Turns out the biggest job increases have been in food services and drinking places, which added 28,000 jobs in August and 298,000 over the past year.

MIT labor economist David Autor said posting gains in areas like these doesn't translate to sustainable, quality job growth.

"They're numerous, but they don't tend to be highly paid," said Autor. "They don't have a lot of job security."

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Fiscal Cliff Could Cost You Your Job

While Americans stash extra cash to prepare for the economic effects of the looming fiscal cliff in 2013, another more immediate concern has developed: How many people will get laid off as companies brace for spending cuts and tax hikes?

The fiscal cliff will pack a double whammy to some businesses. Companies in certain tax brackets will be paying more to Uncle Sam, while some will see their government funding disappear.

The substantial fiscal cliff effect has prompted firms to rein in spending, delay projects, defer bids – and cut staff.

In fact, a study last month from Ernst & Young, the National Federation of Independent Business, the U.S. Chamber of Commerce and other business advocates revealed the fiscal cliff could slash 710,000 jobs from the already beleaguered job market.

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The Next U.S. Jobs Report Could be Awful for President Obama

After almost two and half years of adding jobs to the economy, could the next U.S. jobs report reveal a decline in employment? Money Morning's Chief Investment Strategist Keith Fitz-Gerald appeared on Fox Business' "Varney & Co." Friday to discuss that and more. He analyzed job projections if the Bush tax cuts expire for the […]

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