Nekko1
03-08-2008, 10:37 PM
By Chris Isidore, CNNMoney.com
Last Updated: March 7, 2008: 8:55 AM EST
NEW YORK (CNNMoney.com) -- Employers made their deepest cut in staffing in in almost five years in February, according to a closely watched government report Friday that showed the labor market far weaker than expected, fueling already building recession fears.
There was a net loss of 63,000 jobs, according to the Labor Department, which is the biggest decline since March 2003 and weaker than the revised 22,000 job loss reported for January. Economists surveyed by Briefing.com had forecast a gain of 25,000 jobs in the most recent reading.
The job loss was widespread, reaching beyond the battered construction sector, which lost 39,000 and manufacturing, where job losses hit 52,000. Retailers cut 34,000 jobs, while business and professional services cut 20,000 jobs.
Temporary staffing firms cut nearly 28,000 jobs off their payrolls, another warning sign of employers pulling back, and hotels cut about 4,000 jobs, a sign that discretionary consumer spending could be on the wane.
Overall the private sector cut 101,000 jobs, with only a gain in government employment limiting losses.
Despite the job loss, the unemployment improved to 4.8% from the 4.9% reading in January. Economists had forecast the unemployment rate would rise to 5%. The rate fell because of a big jump in the number of people that the government counted as no longer in the labor force.
The labor market has weakened significantly in recent months, prompting fears of recession along with a $170 billion economic stimulus package and a series of interest rate cuts from the Federal Reserve.
The Fed is next set to meet March 18 to consider what to do with interest rates. Friday's report would seem to suggest more rate cuts are on the way, despite the improved unemployment rate.
While the numbers they use to calculate doesnt require them to publish numbers of people who have been unemployed for 6 months or more, people who job hunt while looking for better work or insurance has expired ect. Otherwise the rates would be much hogher than the advertised price.
even thou this has been the first month that its been sensationised due to the number 63 isnt a latge number. The dow falling be,low 12k is much more sensational of the market. but makes me wish I had more commodity investmen ts or even to switch to a commodity style job.
the economy needs to create north of 150,000 jobs per month just to keep up with growth of the labor force. That is the "stall speed" Anything less is a net negative for the employment picture.
that aside everything in the world is what happens at the margin. In other words, while the job loss numbers seem slight, compared to the number of employed, there is a ripple effect as the national income figures decline. If I lose my job, then I am less likely to spend the money that keeps you in your job. I cut all my employees and go after a whole new angle doesnt help anyone either.
anyway thought I d share and see what peoples thoughts were. spent the last two days at my girlfriends parents house. He is a CPA and his wife a democrat. The focus of conversation seemed to be on politics and his questioning of how how far the improvement business is going to fall with home equity rates. Guess Im fortunate Austin seems to be the bubble and unless hte tech industry and state jobs fail I dont forsee a huge hit other than a slow down from the middle class bieng eaten alive from cost of livign increases.
Last Updated: March 7, 2008: 8:55 AM EST
NEW YORK (CNNMoney.com) -- Employers made their deepest cut in staffing in in almost five years in February, according to a closely watched government report Friday that showed the labor market far weaker than expected, fueling already building recession fears.
There was a net loss of 63,000 jobs, according to the Labor Department, which is the biggest decline since March 2003 and weaker than the revised 22,000 job loss reported for January. Economists surveyed by Briefing.com had forecast a gain of 25,000 jobs in the most recent reading.
The job loss was widespread, reaching beyond the battered construction sector, which lost 39,000 and manufacturing, where job losses hit 52,000. Retailers cut 34,000 jobs, while business and professional services cut 20,000 jobs.
Temporary staffing firms cut nearly 28,000 jobs off their payrolls, another warning sign of employers pulling back, and hotels cut about 4,000 jobs, a sign that discretionary consumer spending could be on the wane.
Overall the private sector cut 101,000 jobs, with only a gain in government employment limiting losses.
Despite the job loss, the unemployment improved to 4.8% from the 4.9% reading in January. Economists had forecast the unemployment rate would rise to 5%. The rate fell because of a big jump in the number of people that the government counted as no longer in the labor force.
The labor market has weakened significantly in recent months, prompting fears of recession along with a $170 billion economic stimulus package and a series of interest rate cuts from the Federal Reserve.
The Fed is next set to meet March 18 to consider what to do with interest rates. Friday's report would seem to suggest more rate cuts are on the way, despite the improved unemployment rate.
While the numbers they use to calculate doesnt require them to publish numbers of people who have been unemployed for 6 months or more, people who job hunt while looking for better work or insurance has expired ect. Otherwise the rates would be much hogher than the advertised price.
even thou this has been the first month that its been sensationised due to the number 63 isnt a latge number. The dow falling be,low 12k is much more sensational of the market. but makes me wish I had more commodity investmen ts or even to switch to a commodity style job.
the economy needs to create north of 150,000 jobs per month just to keep up with growth of the labor force. That is the "stall speed" Anything less is a net negative for the employment picture.
that aside everything in the world is what happens at the margin. In other words, while the job loss numbers seem slight, compared to the number of employed, there is a ripple effect as the national income figures decline. If I lose my job, then I am less likely to spend the money that keeps you in your job. I cut all my employees and go after a whole new angle doesnt help anyone either.
anyway thought I d share and see what peoples thoughts were. spent the last two days at my girlfriends parents house. He is a CPA and his wife a democrat. The focus of conversation seemed to be on politics and his questioning of how how far the improvement business is going to fall with home equity rates. Guess Im fortunate Austin seems to be the bubble and unless hte tech industry and state jobs fail I dont forsee a huge hit other than a slow down from the middle class bieng eaten alive from cost of livign increases.