Results for Jobless Recovery
Unemployment Report Set to Reflect the Bitter Face of a Jobless Recovery
New statistics from the Labor Department today (Friday) will likely confirm that the U.S. economy is in a deeper hole than previously thought.
Economists expect that the national unemployment rate rose to 10.1% in January from 10% in December. More importantly, however, the number of jobs lost from April 2008 to March 2009 will be revised upwards by 824,000 – the largest margin in 18 years, according to Bloomberg News.
Most of those losses came from companies that closed or went out of business, which would undermine the popular birth/death model for joblessness. That model is based on the assumption that hirings at newly formed companies generally offset the job losses associated with company closures.
Low November Job Losses Shock, but The Jobless Recovery Continues
November payrolls fell by much less than expected – declining by just 11,000 – and the unemployment rate fell to 10.0%, the U.S. Department of Labor said Friday. But while it’s becoming more apparent that the U.S. job market is closer to growth, caution is still the buzzword as the jobless recovery continues.
When growth does return the consensus is that getting back the roughly 7.2 million jobs lost since the recession began in December 2007 won’t be an overnight phenomenon.
“I think it’s a little bit premature for champagne, but after enduring two years of really bad news, let’s enjoy this one,” Jay Bryson, an economist with Wells Fargo Securities (NYSE: WFC) told CNNMoney.com. “You’ve got to walk before you start running. I don’t think we’re walking yet, but we’re starting to get back up on our feet.”
U.S. Economy Will Dodge a Double-Dip Downturn, But Won’t Escape Unemployment Woes During 2010 Jobless Recovery
[Editor's Note: This is Part I of a two-part story that examines the U.S. economy's prospects for 2010. It's also the leadoff story for Money Morning's annual "Outlook" series, which will forecast the prospects for gold, oil, banking, and top investing trends in the New Year. Part II of the U.S. economy story will appear tomorrow (Wednesday).]
Historically, the U.S. stock market has been one of the key leading indicators of a U.S. economic rebound.
With the Standard & Poor’s 500 Index up more than 60% from its March lows – and the Dow Jones Industrial Average up nearly 40% – prognosticators are finally confident that the U.S. economy will dodge the “double-dip” recession that has been the focus of much fear since the Bush and Obama administrations launched their financial counterattacks on the worst financial crisis since the Great Depression.
Unemployment Rate Cracks Double-Digit Barrier at 10.2%, Boosting the Odds of a “Jobless Recovery”
Welcome to the jobless recovery.
The U.S. unemployment rate zoomed to an unexpected 10.2% in October, piercing the double-digit barrier for the first time in 26 years as employers continued to slash payrolls even as the nation’s economy continues to improve.
The…
Soaring Productivity, Drop in New Benefits Claims Provide Silver Lining in the Dour Jobs Market
Productivity at U.S. businesses blew away forecasts in the third quarter and initial unemployment claims dropped to a 10-month low last week the Labor Department said Thursday. The reports raised hopes that the labor market may be starting to bottom.
The news sent the stock markets soaring as the Dow Jones Industrial Average rose 204.05 points, or 2.08%%, to close at 10,006.19, while the Standard & Poor’s 500 Index popped 20.13 points, or 1.92%, to close at 1,066.63 and the Nasdaq Composite Index gained 49.8 points, or 2.42%, to close at 2,105.32.
Business productivity rose a higher-than-expected 9.5%, its fastest pace in six years, as companies squeezed more output from fewer workers. A survey of analysts by Reuters had projected productivity, or output per hour per worker, to rise at a 6.4% rate in the third quarter.
Drop in Consumer Spending Could Spell Trouble for Economic Recovery
U.S. consumers curtailed spending in September for the first time in five months the government reported on Friday. Combined with a weak report on consumer sentiment, it increased fears the economic recovery could falter as government stimulus spending winds down, sending the stock market into a downward spiral.
The news sent the Dow Jones Industrial Average plummeting by 294.85 points, or 2.51%, on Friday to close at 9,712.73. Meanwhile, the Standard & Poor’s 500 Index fell by 29.93 points, or 2.81%, to close at 1,036.18 and the Nasdaq Composite Index plunged 52.44 points, or 2.5% to close at 2,045.11.
The Commerce Department said purchases fell by 0.5%, after gaining 1.4% in August, matching the median estimate of economists surveyed by Bloomberg News. But consumers continued to increase their savings even as their incomes dropped.
The Reuters/University of Michigan’s consumer sentiment index rose to 70.6 in late October, up from 69.4 earlier in the month. However, that’s still down from September’s reading of 73.5.
The Three Factors Choking the U.S. Recovery
The stock market may have rallied, but the economy is threatening to erase those gains. This report shows you the three factors choking the recovery – and gives you 3 ways to protect your money until the real recovery sets in.
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