UPDATE 2-Taxpayers likely to face initial loss on GM IPO-sources
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Friday, September 3, 2010
UPDATE 2-Taxpayers likely to face initial loss on GM IPO-sources
Found this interesting link on the Drudge Report:
President Obama Reacts to August Jobs Numbers, Doesn't Mention Net Job Loss of 54K - Political Punch
Found this interesting link on the Drudge Report:
President Obama Reacts to August Jobs Numbers, Doesn't Mention Net Job Loss of 54K - Political Punch
Fwd: Morning Bell: The Audacity of Failure
09/03/2010
In April, while campaigning in Pennsylvania, Vice President Joe Biden promised the American people: "I'm here to tell you, some time in the next couple of months, we're going to be creating between 250,000 jobs a month and 500,000 jobs a month. ... We caught a lot of bad breaks on the way down. We're going to catch a few good breaks because of good planning on the way up." And for a while it looked like Biden was a genius. In May, the Labor Department reported that nonfarm payroll employment rose by 290,000 the previous month and in June they reported that the U.S. economy added another 431,000 jobs. President Barack Obama's "good planning" was working! But then the next report showed the U.S. economy lost 125,000 jobs in June and then the August report found another 131,000 jobs were lost in July. Today the Labor Department released the September jobs report, showing nonfarm payrolls decreased again by 54,000 and that the nation's unemployment rate rose to 9.6%.
By every objective measure, President Barack Obama's economic stimulus package has been a complete failure. When President Obama was selling his stimulus plan to the American people, he promised it would save or create 3.5 million jobs by the end of 2010. At the time, employment stood at about 135.1 million, according to the Labor Department's most commonly used measure. That established an Obama jobs target for December 2010 at 138.6 million. According to the latest jobs report, total U.S. employment stood at 130.3 million in August, which means the cumulative Obama jobs deficit stands at 7.5 million.
Companies add 67,000 workers in August; unemployment rate climbs to 9.6 percent
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Companies add 67,000 workers in August; unemployment rate climbs to 9.6 percent
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By Associated Press
Story posted 2010.09.03 at 07:35 AM CDT
WASHINGTON (AP) — The unemployment rate rose in August for the first time in four months as weak hiring by private employers wasn't enough to keep pace with a large increase in the number of people looking for work.
The Labor Department says companies added a net total 67,000 new jobs last month, down from July's upwardly revised total of 107,000. Wall Street analysts expected a smaller gain, according to Thomson Reuters.
Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. State and local governments shed 10,000 positions. The jobless rate rose to 9.6 percent from 9.5 percent in July.
More than a half-million Americans resumed their job searches in August, which drove up the jobless rate. When the unemployed stop looking for work, they are no longer counted in the jobless rate.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) — The unemployment rate may be about to rise again.
Economists are bracing for a weak showing in the August employment report, which is scheduled to be released Friday. The private sector is forecast to add a net total of only 41,000 jobs, the fewest since January, which isn't enough to keep up with population growth. The jobless rate is expected to increase to 9.6 percent from 9.5 percent, the first rise since April.
The anemic economy is causing companies to conserve cash and hold back on hiring. While most economists expect the nation to avoid another recession, growth will likely be so weak for the rest of this year that the jobless rate could move back above 10 percent by early next year.
"Ultimately, businesses will hire if they feel confident there will be revenue growth in the future," said Julie Coronado, an economist at BNP Paribas. "But we're growing at a pretty slow pace."
Overall, total payrolls are forecast to drop by 100,000, because about 115,000 temporary census jobs ended last month.
The weak pace of job creation is raising concerns among economists about whether the economy can keep growing after government programs, such as the homebuyer's tax credit, ends.
"The idea is that as the stimulus falls away, the private sector is supposed to pick up steam," said Scott Brown, an economist at Raymond James.
Instead, businesses now face uncertainty about whether tax cuts enacted in 2001 and 2003 will be allowed to expire, Brown noted, which "isn't helpful."
But rising unemployment may force Congress to resolve that uncertainty. An increasing number of Democrats are joining congressional Republicans in opposing President Barack Obama's plans to let tax cuts on upper income earners end.
A jobless rate nearing 10 percent would also raise pressure on the Federal Reserve to do more to jump start the economy. Fed Chairman Ben Bernanke said last week the central bank will take more steps if necessary. But he also said the foundations have already been laid for economic growth to accelerate next year.
There were some positive economic reports Thursday. Figures on unemployment claims, store sales and home-buying contracts all trended in the right direction, allaying fears that the economy is on the brink of another stumble.
For now, companies aren't resorting to widespread layoffs. New applications for unemployment benefits declined for the second straight week after rising in the previous three to above the half-million mark.
"This is something of a relief, because it suggests that the 504,000 claims number from two weeks ago was a fluke rather than an indication that the trend has suddenly surged higher," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Claims for unemployment aid fell last week by 6,000 to a seasonally adjusted 472,000, the Labor Department said. There would be far fewer claims in a healthy economy. When economic output is growing rapidly and employers are hiring, claims generally drop below 400,000.
Retailers, meanwhile, reported surprisingly strong sales in August compared to a year ago. The International Council of Shopping Centers' index of 31 major retailers was up 3.2 percent in August, following a 2.8 percent gain in July.
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