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View Full Version : Economics Gee I thought the MSM said the recession was over?


The Mad Crapper
02-05-2010, 05:48 AM
Now they are calling it The Great Recession. :rolleyes:

http://thepeoplescube.com/images/Obama_Coin_ExactChange_160.gif

WASHINGTON (AP) -- Job losses during the Great Recession have been huge and they're about to get bigger.

When the Labor Department releases the January unemployment report Friday, it will also update its estimate of jobs lost in the year that ended in March 2009. The number is expected to rise by roughly 800,000, raising the number of jobs shed during the recession to around 8 million.

The new data will help illustrate the scope of the jobs crisis. Analysts think the economy might generate 1 million to 2 million jobs this year. And they say it will take at least three to four years for the job market to return to anything like normal.

"It's going to take a long time to dig out of this hole," said Julia Coronado, senior U.S. economist at BNP Paribas.

Wall Street economists expect the January report will show a tiny increase of 5,000 jobs. That would be only the second monthly gain since the recession began. But it probably wouldn't be enough to hold down the unemployment rate, which is forecast to rise to 10.1 percent. That would match October's 26-year high. And it would be the fourth-straight month of double-digit joblessness.

The Labor Department's revisions on employment levels are done every year. They are based on unemployment insurance tax data that companies submit to states.

Jobs remain scarce even as the economy is recovering: Gross domestic product, the broadest measure of the nation's output, has risen for two straight quarters. GDP rose by 5.7 percent in the October-December quarter, the fastest pace in six years.

But hiring is still lagging. Many economists say businesses are reluctant to add workers because it's not clear whether the recovery will continue once government stimulus measures, such as tax credits for home buyers, end.

The debate over health care reform and the scheduled expiration of some Bush administration tax cuts at the end of this year may also cause companies to restrain hiring, many economists said.

"Until some of these uncertainties from Washington get cleared up, businesses, particularly small businesses, are going to be loath to do any additional hiring," said Hank Smith, chief investment officer at Haverford Investments.

High unemployment is likely to hold back consumer spending, which has led most recoveries in the past. That's why many economists think the current rebound will be weak.

Public concern about persistent unemployment has forced President Barack Obama and members of Congress to shift their attention to jobs and the economy and away from health care reform. The Senate will begin working Monday on legislation that would give companies a tax break for hiring new workers, Majority Leader Harry Reid said Thursday.

The budget plan Obama released this week projects unemployment will still be very high -- 9.8 percent -- by the end of this year.

Instead of adding workers, many companies are squeezing their existing work forces to produce more. Productivity rose by a seasonally adjusted 6.2 percent in the fourth quarter, the Labor Department said Thursday, above analysts' expectations of a 6 percent rise. That was the third straight quarter of sharp gains.

Productivity often increases at the end of recessions as companies ramp up output before hiring new workers. Rising productivity can raise living standards in the long run. But it can also make it easier for companies to put off adding jobs.

A separate Labor Department report on initial claims for jobless benefits said claims rose unexpectedly last week by 8,000 to 480,000. The rise in claims was the fourth in the past five weeks. It disappointed economists, who thought claims would resume a downward trend evident in the fall and early winter. The four-week average, which smooths fluctuations, rose for the third straight week to 468,750.

Most economists say claims need to fall to about 425,000 or below for a month to signal that employers are stepping up hiring.

Still, some positive signs emerged in the productivity report. Hours worked in the fourth quarter rose 1 percent. That was the first increase since the second quarter of 2007. Output rose 7.2 percent, the largest increase since the third quarter of 2003.

To continue increasing production, economists say companies will eventually have to start adding jobs again. That should bring productivity gains back down toward their long-run average of about 2.5 percent.

"You can push your workers but so far," said Anika Khan, an economist at Wells Fargo Securities. "At some point businesses have to begin to hire."

But the main question is when. The economy could begin generating net job gains as early as March, Khan said. But they won't be enough to hold down the unemployment rate. Wells Fargo expects the rate to peak at 10.5 percent in the second half of this year.



http://finance.yahoo.com/news/Job-losses-from-Great-apf-315660824.html?x=0&sec=topStories&pos=3&asset=&ccode=

BucEyedPea
02-05-2010, 06:03 AM
Little do they know it's getting worse....the same way the Hoover's recession got worse and with the same BS policies that turned it into the Great Depression.

The Mad Crapper
02-05-2010, 06:17 AM
Little do they know it's getting worse....the same way the Hoover's recession got worse and with the same BS policies that turned it into the Great Depression.

Don't worry, B.O. will make sure another 500,000 government jobs are created. :rolleyes:

BucEyedPea
02-05-2010, 06:20 AM
Don't worry, B.O. will make sure another 500,000 government jobs are created. :rolleyes:

Well, that's the whole idea....taking advantage of a good crises just like his CoS said.
Then we'll all be grateful to our Sugar Daddy federal govt forever while loving being owned.

The Mad Crapper
02-23-2010, 12:21 PM
Is the recession over, yet?

sportsman1
02-23-2010, 12:23 PM
Its scary... look at the huge Government grab with the Great Depression. Things have escalated since then. I swear that it wont be FDR lite.. with the financial situation things can only look worse.

KC native
02-23-2010, 01:32 PM
Is the recession over, yet?

According to the Federal Reserve it is.

KC native
02-23-2010, 01:34 PM
Little do they know it's getting worse....the same way the Hoover's recession got worse and with the same BS policies that turned it into the Great Depression.

You should at least attempt to know what you are talking about. The numbers are out there and they are all improving (outside of CRE).

donkhater
02-23-2010, 01:39 PM
It's very simple. Businesses don't trust this Administration and Congress. They are afraid if they stick their necks out and hire and try to expand it is going to get cut off. Can't say I blame them for feeling that way. Obama, Reid and Pelosi have given them every reason to feel that way.

Rain Man
02-24-2010, 11:31 AM
Don't worry, B.O. will make sure another 500,000 government jobs are created. :rolleyes:

That's exactly the problem. Government jobs don't support the government. Only private sector jobs do that, and they're not doing anything to relieve the burden on the private sector. In fact, it just keeps getting worse as governments add more burden to the private sector so they can protect the government work force.

The Mad Crapper
02-24-2010, 11:38 AM
That's exactly the problem. Government jobs don't support the government. Only private sector jobs do that, and they're not doing anything to relieve the burden on the private sector. In fact, it just keeps getting worse as governments add more burden to the private sector so they can protect the government work force.

What, are you one them teabaggers?/moonbat off :drool:

The Mad Crapper
07-29-2010, 05:08 AM
http://www.iaza.com/work/100702C/did_I_do_that7451514165-iaza.jpg

blaise
07-29-2010, 08:34 AM
The solution is simple. A census every month.