Posted on 10/26/2022 3:39:40 AM PDT by EBH
There has been a lot of talk about looming layoffs, and by some recent surveying, as many as half of large employers are thinking about labor cost cuts as the economy slows. But U.S. Department of Labor Secretary Marty Walsh doesn’t see the recent job gains reversing, according to an interview at CNBC’s Work Summit on Tuesday.
“I still think that we’re going to have job gains as we move into the end of this year, early next year. A lot of people are still looking at different jobs,” he told CNBC’s Kayla Tausche at the virtual event. “We saw a lot of moving around over this last course of the year. People leaving jobs, getting better jobs, and I’m not convinced yet that we’re headed towards that.”
For the Federal Reserve, some level of higher unemployment is necessary to cool an economy that has been bedeviled by persistent inflation. Unemployment, at 3.5% now, went down in the last monthly nonfarm payrolls report. The Fed is targeting unemployment of 4.4% as a result of its policy and higher interest rates.
“We definitely have to bring down inflationary pressures,” Walsh said at the CNBC Work Summit, but he added that the way to do it isn’t layoffs.
(Excerpt) Read more at cnbc.com ...
QUOTE: For the Federal Reserve, some level of higher unemployment is necessary to cool an economy that has been bedeviled by persistent inflation. Unemployment, at 3.5% now, went down in the last monthly nonfarm payrolls report. The Fed is targeting unemployment of 4.4% as a result of its policy and higher interest rates.
QUESTION: How many people do they want to add to the unemployment roles? Is that something like 2.25 million people? How many losing their job or second job during an inflationary cycle? Those job losses will happen in the most vulnerable sectors. Explain to me how making those sectors worse helps people or the economy?
I challenge everyone reading this, read the article linked AND read the report linked in the first comment. Really take at look at their numbers and think about what you are seeing and hearing to real life, even if is to just compare the unemployment rates. Look at the numbers by Occupation Sector, by Education, by whatever metric you care to consider.
Unique looks:
Truck Drivers and Transportation: Consider, we are being told there is a driver shortage. What is the unemployment rate compared the the nation?
Leisure and Hospitality: Consider your last experience with someone in this sector. What is the unemployment rate for this sector?
Retail: You know retail is screaming for workers. What is the unemployment rate?
I know I will get a bunch of glib comments, but to the economic minds of FR I hope for a good commentary here. While I do not agree with everything Walsh is saying, he has one thing right in my opinion, making people lose their jobs is not a brilliant way of taming inflation. Are his solutions right, no not all of them. But of them...which one works with a tweaking of conservative values. If we win in November, like we think, we are going to have to work with these folks. How can we help the American people?
Link to the BLS report:
https://www.bls.gov/news.release/pdf/empsit.pdf
One real catastrophe waiting to happen is something that virtually no one is talking about in the US mainstream media, to include FOX.....
‘Diesel Shortage Leaves US With Just 25-Day Supply as Demand Surges: Report’
https://freerepublic.com/focus/f-news/4102969/posts
Total and complete supply chain shutdowns just waiting to happen.
When you have a government that is hostile to business and purposely destroying the economy, industry must counteract in order to survive those ruinous actions.
The grapevines to which I'm still privy have it that there will be layoffs in December and it's going it's be brutal.
The Fed is in a no win situation. They have to deal with congress continuing to spend money. Imagine trying to counter that. Not only that, but higher unemployment rates creates the incentive for more government welfare and spending. Also, the reason why the s&p performs better with unemployment rates of 5-8 percent.
bfl
“ I know I will get a bunch of glib comments,…”
Illegals work for less than minimum wage, and we have 4 million more since SloJo took office. Low-wage positions will be filled. Middle-class jobs will be hit hard.
All part of the plan.
America is near the limit of its debt.
A collapse in the economy is coming.
As interest rises, loans becomes impossible to pay and this includes the national debt.
It’s a perfect storm in every sense of the word that is coming.
It all goes back to cheap and abundant energy supply - kill that, as Biden did and everything goes south.
All the other ‘remedies’ are nothing more that exercises in population/business control, meant to accrue more power in the hands of the unelected and untouchable politicians, while diminishing freedom for everyone else.
How bout this Secretary of Labor and Communism take a hike? These people shouldn’t be in charge of anything.
If we do have a lot of layoffs, the first thing that should be done is to boot out a lot of H1b’s and deport illegals.
Obviously this administration will never do it but there needs to be a mechanism put in place for this. I remember how incredibly galling it was during the Great Recession when plenty of Americans were unemployed or underemployed to see hordes of H1b Indians in a lot of jobs at banks and tech companies that would otherwise be filled by Americans.
Listen to this for example:
“I think there’s a way to do that by creating good opportunities for people so they have opportunities to get into the middle classHe actually thinks the government can help create good opportunities.
There are some things a government can do to ease the rugged movements of an economy but those things cannot create opportunities. At best, they can only ease the pain by reducing the sharp edges of economic shifts.
They were saying that earlier this year...did not happen.
I am anticipating as I work in Leisure.
The reason I tend to disagree with this is though the dollar is weak and the US economy has a lot of self inflicted problems, where is all the investment money going to go? As bad as it is, the dollar is still stronger than the Euro, the Pound, the Yen etc. That’s why the fed’s rate hikes are kicking the crap out of the rest of the world. Its sucking in foreign capital.
True. The answer to all this is limiting the federal government. It’s way too big, corrupt, bloated and powerful.
These problems, all of them, are from government interference or government cheerleading. Get to limited government and we start to heal…but neither party wants that.
Correct. Foreign money is flowing into our markets thinking the dollar is going to be the safe haven. Even with inflation!
Yes, President Trump has us setup to get through this. We would still be seeing a worldwide crisis, but it would have been far more palatable. Heck we might not even be on the brink of war.
But here we are. So when January 2023 rolls in and we have the House and maybe even the Senate, we’ve got to work with these nutcases in the Biden regime. Will we have the courage to override Biden vetoes?
In the near and distant future, job tasks will be shorter and shorter as technologies are replaced. It will be a kind of gig economy where people continually develop new skills and move about as required/needed.
People will be contractors at times, temporary employees at others.
Work opportunities and the retail faces of this developing world will mold themselves around new inventions and developments.
Floods of humanity over our borders is unnecessary and problematic. It is not a positive (as we know too well).
Everyone knows this. But the bureaucrats (like the Sec of Labor in this article) are scrambling to stay relevant by pretending they can help.
They can't.
Bingo. The American economy is built on a foundation of inexpensive energy and light government regulation. The Left is destroying that foundation.
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