Posted on 09/05/2009 8:05:38 AM PDT by SeekAndFind
The economy may be growing again, but employers aren't hiring.
Despite an emerging economic expansion, businesses were sufficiently skittish about the future that the job market continued its long, steep decline in August, according to a new government report Friday. The unemployment rate rose to 9.7 percent, from 9.4 percent, as employers shed jobs for the 20th straight month, the Labor Department said.
The increase was greater than many analysts had forecast, and it undermined hopes that the corporate sector will rapidly rebuild its workforce following the economic trauma of the last year. That in turn could keep a self-sustaining recovery from taking hold, as Americans have less money to spend and less confidence about their own job prospects.
"Our clients tell us they will not hire in anticipation of a recovery, but will wait until they see it," said Jonas Prising, an executive vice president at Manpower, the giant employment services firm. "In a normal recession, people would now start to feel more comfortable and start hiring, but nobody is doing that today. They'll do it when they see real orders and real business."
The new numbers included some silver linings: The 216,000 jobs that employers shed in August was the slowest rate of job loss in a year, which drove the stock market up 1.3 percent, as measured by the Standard & Poor's 500-stock index.
Companies are not laying people off at the same furious pace they were a few months ago -- the number of people to lose their jobs in mass layoffs fell 26 percent in July. But neither are they willing to take the risk of bringing on new workers, despite signs that there could be better times ahead.
(Excerpt) Read more at washingtonpost.com ...
Yup. Jobless recoveries are the worst, as the Democrat party loved telling us when Bush was president.
Watch out for Obama playing games with season adjustments. This is a setup.
Still our traitor class has wide open borders, to illegals, to an unlimited amount of refugees (a racket) and to an insane amount of “legal immigration” which unfortunately gives the warm fuzzies to the PCbots.
The stimulus bill was a complete failure and so is obozo.
Pray for the Tea Party Express
Now would be perfect time to replace the illegal aliens in the farming industry and other industries with the vast unemployment U.S. citizens!!!
Next, employment always lags production, so even when the economy starts to come back in the (hopefully near) future, companies will rather work their current employees more before hiring to see if the recovery is real or just a bluff.
Finally, a lot of Obama's plans deal with either forcing employers to give medical insurance to employees or taxing employees more for health care. In the first case it might make sense to work 2 employees for 60 hours a week rather than 3 at 40 (or 6 at 20) to save on insurance. With the second, it might make more sense to buy one machine and hire one employee rather than 2 or 3 or 6 because machines are a capital expense which won't be taxed under Obama care instead of a payroll expense which will be.
Obama has too many "big plans" out there, and companies want to see what the rules will be before making big investments.
THE LAYOFF LOOP OR HOW GOVERNMENT GROWS
1. If business is laying off, workers are not making money.
2. If workers are not making money, they are not buying.
3. If workers are not buying, business is not making money.
4. If business is not making money, workers are being laid off.
5. Workers vote Democrat for government to provide jobs.
6. Has government contracts and stimulus provided enough jobs?
7. If NO, GOTO 1
8. If YES, wait for business to start hiring and voting Republican.
Until industry starts to grow again in this country we will not see a recovery.
They should check out government layoffs as the source. County governments in California layed off a lot of people. Our little county layed off 25 people and we only have a total population of 45,000 (current unemployment in excess of 18%)
I think employers are more concerned with Obama's tax plans (health care, cap & trade, income, etc.) than anything.
During the great depression state and local governments tightened their budgets and cut payrolls etc. The federal government, meanwhile, vastly expanded, hired more people and took over projects that the states could no longer afford. The result was a loss of federalism and a far more powerful central government. Sound familiar?
While people think that 0 is losing battles like health care he is in fact winning the war.
That's the reason nobody is hiring.
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