Firms still slashing jobs

MSNBC.com ^ | 9/5/03 | ASSOCIATED PRESS

[Afronaut]

 

Firms still slashing jobs

WASHINGTON, Sept. 5 — Despite the civilian unemployment rate sliding down to 6.1 percent in August, the government reported Friday that companies slashed payrolls by 93,000, raising new concerns that the fragile economic recovery could falter.

AUGUST WAS THE seventh consecutive month of cuts in payrolls, a survey released by the Labor Department showed, indicating continuing weakness in the job market. Analysts had expected companies to add 12,000 new jobs.

At the same time, the overall seasonally adjusted unemployment rate fell from 6.2 percent to 6.1 percent of the labor force, as reflected by a survey of U.S. households. Stock prices fell in early trading Friday on news of the job losses.

The survey of businesses showed that job cuts were heavy again in manufacturing, a sector that has suffered the brunt of the economic downturn that began in March 2001. President Bush on Monday announced that a Commerce Department assistant secretary post was being changed to focus on revitalizing that part of the economy.
Friday’s reports no longer reflected a cyclical economy trying to add jobs after a recession — “which is depressing,” said Sung Won Sohn, chief economist at Wells Fargo. Analysts had expected companies to add some jobs last month.

Deeper concerns now are focused on long-term structural problems in the economy, such as a flood of U.S. jobs going overseas. “We have simply seen the tip of the iceberg,” Sohn said. “I think it will get worse, not better.”

At the White House, spokesman Scott McClellan said, “The economy is growing but we want to see it grow even faster.” He said jobs are one of the last things to grow as the economy improves.

Some reports estimate 5 million jobs — many high-paying — will be lost to other countries by 2015. As the economy grows, demand is being filled from overseas, Sohn said. Also, because of that increasing global competition, businesses are holding down costs by not hiring. If hiring doesn’t improve, the recovery could be in jeopardy because consumers worried about their job prospects will stop spending. That’s been the driving force in the U.S. economy.

Hiring in health care and construction helped offset losses in factories and other industries, such as information, professional and business services and government, Friday’s report said.

Last month’s power blackout in the Northeast and Midwest was unlikely to have affected either of the monthly surveys, Labor Department analysts said.

Labor Department analysts believe the survey of businesses provides a more reliable picture of the jobs market than the household survey. The payroll report is based on a larger sample and estimates “are regularly anchored to” counts derived from employment insurance tax records, said Kathleen P. Utgoff, Bureau of Labor Statistics commissioner.

Last month, the number of people in the labor force remained largely unchanged, with just 10,000 giving up their job searches. The labor force is comprised of those working and looking for work.
Nearly 2 million people in August were unemployed for 27 weeks or more, representing nearly 22 percent of all jobless workers. Those figures were similar to July numbers.

More

[Thisiswhoweare]

Would you be able to support your family on one of those jobs that sell 95% foreign products? The pay with no benefits (unless you're management) somehow doesn't include your "rising 401K". I'm glad you're doing well for now. Enjoy it while it lasts, no one is immune to the changing climate.

No flames please, just my stating an opinion.

[kittymyrib]

The average lag for employment in a recovery is three months. August was the TWENTIETH month of lag. These jobs are never coming back. All the unemployed need to apply for welfare in the next month or two. Of course, that will mean higher taxes for the employed, but it's a small price to pay for our fine congressmen, who just voted themselves a raise yesterday to $158,500/year, and those $20,000,000/yr. CEOs who know which slave countries to move their businesses to to prop up their stinking stock. Start practicing saying "Pres. Dean" if things don't turn around FAST.

[skeeter]

Conversely, the central-planners will be here to explain that you are entitled to a "living wage," and the only answer is government intervention.

On the contrary, I want the government to butt out.

No more taxpayer money going to fund organizations like the OPIC or Import-Export Bank, who make their living facilitating the export of US jobs. No more H1Bs etc.

No more corporate welfare.

[Coop]

Quite a stretch to blame the 'employment lag' indicator on 9/11.

ROTFLMAO!!! I'm sorry I find any comment involving 9/11 to be so amusing. But for anyone to sit here and pretend the economy was not severely impacted for years and years to come by those terrorist attacks... well, it's not even worth debating.

[lelio]

How is that? Answer

Add to that the magical "seasonally adjusted" number. That's used to smooth out any bumps along the road. I say throw it out and let the unemployment number bounce around. We're big boys and can take being told the truth.

[lelio]

Meanwhile my 401K is continuing to increase in value

So its gone from 1/2 of its value in 2000 to 3/4ers?

[Orbiting_Rosie's_Head]

Speaking of nonsense, how do you propose that your job be saved?

I never said it should be. I'm just amazed that people like you show no concern or even asky why the jobs are being lost. Did it ever occur to you that the people with their hands on the controls might not be too bright? Almost every round of layoffs at this company X has been at the talent level, the people actually doing work. You tell me which is smarter: Layoff 10 $80K/year engineers who produce technical innovation or Layoff one 800K/year senior VP who produces powerpoint slides and failed management schemes. My company keeps eliminating engineers, but we seem to be awash with useless executives who do nothing but watch other people work.

[Coop]

Yep. It's now a 301K, up from a 201K.

[Orbiting_Rosie's_Head]

Meanwhile my 401K is continuing to increase in value

So its gone from 1/2 of its value in 2000 to 3/4ers?


Haha! Goodun. And don't forget the effect is temporary. Once these morons have their overseas operations humming they'll be wondering why the unemployed Americans aren't buying.

[american spirit]

Absolutely correct on OPIC and the IE Bank. Talk about corporate welfare.... current immigration policy(?) is exactly that in it's purest form. Wouldn't it be great to be to hire all these illegals with bogus SS #'s to flip hamburgers, pay them minmal wages knowing full well the sucker taxpayers will be soaked even more to support those worker's housing, medical, food, etc.

[riri]

Are you telling me they're not?

You can not be serious with this comment.

[Orbiting_Rosie's_Head]

Imagine that. And on a conservative website, no less.

I'm a registered Repub. Looks like we really are the stupid party. You'll be laughing when those critical JDAM parts just don't seem to be available from the PRC, and darnit, they aren't made anywhere in the good ole US of A.

[Coop]

You can not be serious with this comment.

Of course I can. Are you telling me they're not?

[scottlang]

Just lost my $80K/year engineering position.

Sorry to hear that, I have been there a few times too. My prayers are out you and yours. Good luck. It with the lords help will get better.

[skeeter]

Yes, those who claim any action taken to stem the flow of jobs abroad is tantamount to 'government intervention' have turned reality on it's head.

[scottlang]

"An economic recovery, with unemployment the traditionally lagging indicator. "
Traditionally, unemployment does not lag two years into a recovery.


If it lags much more it may lag a dem into the whitehouse.

[1rudeboy]

You confuse an understanding that some solutions cause more harm than good with an apparent lack of concern. As for executives, what else is new? Some folks rise to the level of their own incompetence.

[kidao35]

Let's start by realizing that by converting engineers to cashiers, we're depleting the tax base of this nation. So where is the money going to come from for some near-future big price-tag items, like social security for the baby boomers? Look in the mirror, pal. Yes, YOUR taxes and withholdings will go up as a result of diminished wages. So much for the comfort of sitting back and saying, "Well, it sucks being you".

And how many engineers went to public universities, or had student loans, again partially funded by taxpayers? Heck, you didn't need to send them to college, just teach them how to use a cash register! What a waste of public tax dollars.

This nation didn't get to the top by producing legions of ditch-diggers, nor will it stay on top if that's what we regress to.

Let's also look at the constraints placed on American manufacturers operating in the good 'old USA. Does your manufacturing process involve chemicals, noise from equipment, or otherwise less-than-pleasant operating conditions? Whoa! You'll have a legion of gov't agencies up your ass with track shoes. The place I work at uses small amounts of isopropyl alcohol for some processes. You'd think we were generating nuclear waste, the way the company has to deal with it. Meanwhile, plants and India and China dump huge amounts of raw waste containing heavy metals and other deadly contaminants into the nearest storm grating or river.

Do I need to go into gov't regs covering everything from the number of toilets, to handicap access? Nothing like setting up shop in an older building to try and save some green on floorspace, only to find out you have to widen most of the doorways and install elevators.

There simply is no "free trade" between the US and China, or India. Its all one sided, being led by globalist socialists bent on the Marxist dream of redistribution of the wealth, while keeping a healthy portion for themselves, and weakening the US economy to the point that we as a nation will become irrelevent.

Its a shame to see so many 'conservatives' following the Pied Piper. I'll be damned if I ever sell myself out, or this nation, for a few bucks. If that's what a conservative is all about, I'll call myself a patriot instead.

[Afronaut]

"VP who produces powerpoint slides and failed management schemes"

You forgot jetting around the US attending meetings...That could be done with a speaker phone. I have seen this all up close and it is not pretty.

After the Huge GWB admin. speeding spree is complete, you will see what the real deal is.