You are hereArchive - Aug 3, 2008

Archive - Aug 3, 2008


US unemployment rate hits 4-year high at 5.7% - 51k jobs lost in July, 1.6 million over past year; employers cutting jobs, hours

US has lost 463,000 jobs so far in 2008

(quote)

NEW YORK (CNNMoney.com) -- Employers cut jobs in July for the seventh straight month, while the unemployment rate hit a four-year high, according to a government report released Friday. The Labor Department reported a net loss of 51,000 jobs in the month. Economists surveyed by Briefing.com had been forecasting a loss of 75,000 jobs in the latest report.

The latest report brought job losses this year to 463,000. The June job loss number was revised to 51,000. The unemployment rate rose to 5.7% from a 5.5% reading in June. It was the worst reading since March 2004, and slightly worse than economists' forecast of a 5.6% rate. The rate has now jumped a full percentage point from a year ago. But the 5.7% unemployment rate tells only part of the problem facing job seekers. It doesn't include those who have become discouraged from looking for work, or those who have accepted part-time jobs when they want to be working full time. Counting the unemployed or underemployed, the rate rises to 10.3%, the first time that measure has hit double figures since November 2003.

the nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work

Those who are out of work are also taking longer to find new jobs. There are now 1.7 million people out of work for six months or more, which is up 6% from a month early and is 28% above year-ago levels. Nearly one in five people counted as unemployed have now been out of work for six months or more. "It is becoming increasingly hard for Americans to find work in this economy," Sen. Charles Schumer, D-N.Y., said in a statement. "As the construction, manufacturing, and now retail sectors are reeling from job losses, too many workers are being forced to reduce their hours and take part-time jobs just to make ends meet." Tig Gilliam, chief executive of Adecco Group North America, a unit of the world's largest employment firm, said there's few signs of a turnaround in the labor market on the horizon. "I think we're going to see more of the same for at least another quarter, and it could be the rest of the year," he said.

The job losses also show spreading weakness in the labor market. Construction lost 22,000 jobs as housing continued to suffer, while manufacturing employment plunged 35,000 jobs, as automakers cut production in the face of weak sales. But the job losses were spread far beyond the battered construction and auto industries. Retailers cut 17,000 jobs, while business and professional services lost 24,000 positions. Problems in housing and credit markets continued to hit the job base as commercial banks, Wall Street firms and real estate firms cut more than 4,000 between them.

the Fed is set to keep rates unchanged because of inflationary pressures

But there were a number of service sector employers outside of finance and real estate that saw problems as well. Publishing lost 3,400 jobs, due to continued problems at newspapers and magazine. Airlines also cut 900 jobs. Even with gains in health care and a narrow increase in leisure and hospitality employers, service sector companies cut a total of 30,000 jobs. And the service sector is the broad area of the economy that provides more than 80% of the non-government jobs. Government employers added 25,000 jobs to mitigate the losses in the private sector. But Gilliam said that's not necessarily a positive for the economy. "It's good to have the government adding jobs in the short term, but that's not an long-term solution either," he said.

In another sign of weakness, the average hourly work week fell 0.1 hour to 33.6 hours. The average hourly wage edged up 6 cents to $18.06, bringing salaries up 3.4% over the year-ago levels. That's well below the 5% rise in overall prices paid by consumers over the 12 months ending in June, meaning that paychecks are not keeping up with costs. In terms of the impact on gross domestic product, every tenth of an hour drop in the workweek is equivalent to a loss of 300,000 to 350,000 jobs, Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, estimated. He cut his third- quarter growth forecast to 0.7 percent at an annual rate, less than half his prior projection of 1.5 percent.

(unquote)

Images courtesy of CNN Money, AP Photo/Paul Sakuma, and EPA

Original Source: CNN Money and Bloomberg

Contact Us

Contact Us

RSS feed

Subscribe to WcP Blog RSS feed

Twitter

WcP Blog on Twitter

Facebook

WcP Blog on Facebook

Custom Search



Amazon Kindle Books

Apple iBookstore





Random image

LuCxeed Photography: Half Soul's Hope

Search the Web

Custom Search

Archive Calendar

September 2014
SunMonTueWedThuFriSat
123456
78910111213
14151617181920
21222324252627
282930

Featured Videos

Latest Quote

"The good is the beautiful."
- Plato

"Things of this world are in so constant a flux, that nothing remains long in the same state."
- John Locke

Recent comments

Reader Reviews

  • "It's an extraordinary joy perusing your post. It's loaded with data I am searching for and I want to post a remark that the substance of your post is wonderful. Thanks! :)" - Lilia (July 31, 2014)
  • "I do not even understand how I finished up right here, but I thought this to be great. I do not recognise who you are however certainly you
    are going to a famous blogger for those who are not already. Cheers!" - Gerald (July 24, 2014)
  • "Your blog is very informative. Also the images in it are beautiful!" - Anonymous (January 8, 2014)
  • "It is tempting to comment because of the amazing content on this blog. I wish I had a blog like this." - Anonymous (December 27, 2013)
  • "Thanks for trying to make the world a better place." - Anonymous (July 16, 2013)
  • "I have added to my favorites. I just found this blog and have high hopes for it to continue. I believe this really is excellent information. Most of men and women will concur with you and I ought to thank you about it. Thanks for sharing." - Anonymous (May 16, 2013)
  • "This is awesome! Your photos are perfectly taken! It captured the decisive moment. I am a fan already." - Sarah (Apr. 15, 2013)
  • "Can I just say what a relief to obtain a person who truly knows what they're talking about on the web. You certainly know easy methods to bring an issue to light and make it critical. Extra individuals must read this and comprehend this side of the story. I can't believe you're not even more well-liked considering that you absolutely have the gift." - Anonymous (Jan. 23, 2013)
  • "I wish to show my thanks to the creator of this blog. Keep contributing a good concepts and strategies. Many people will surely improve their skills by reading blogs like this." - Anonymous (Dec. 25, 2012)
  • "I really like your style but mostly your initiative. The world needs more writers like yourself." - Steve (Jan. 18, 2012)
  • "It must be very rewarding to have a long term project like this and too see the progress being made! Thanks for sharing it." - Mika (Jan. 18, 2012)
  • "This was a very eye opening video. It's made an impact on me. We're so unaware of the things that we do every day can destroy our ecosystem. The statistics are mind blogging especially the fact that 90% of big fish are gone. We need to stop this somehow. I'm going to spread this page to my mutual friends. Thanks for this." - Joseph (Jan. 15, 2012)
  • "I enjoy this blog a lot." - Liz (California, USA; Oct. 17, 2011)
  • "Keep up the good work you're doing." - Casper (Melbourne, Australia)
  • "Thanks for sharing some great content through your blog. It has been a sincere pleasure to read." - Anonymous
  • "Always fresh and fascinating." - Anonymous
  • "Cool bio[mission statement]." - Darin (California, USA)
  • "You have some beautiful images. Love your site!" - Susan (Washington DC, USA)
  • "I love your Blog." - Kate (Ireland)
  • "A great site highlighting many important issues." - Bob (New Zealand; Feb. 20, 2010)
  • "Love the images on this blog..there are some interesting articles about health I noticed...we tend to run a 50/50 risk of a heart attack...I noticed when in the USA recently everyone seemed huge..they ate massive meals...I reckon that is one cause of heart failure...just my opinion..but yeah these articles can be worrying to some folk so just heed the advice...I know I will." - Mick (The Sunshine Coast, Australia; Aug 29, 2009)
  • "Excellent blog." - Bill (Vancouver Island, Canada)
  • "Fantastic blog and educational articles, much enjoy visiting...Thank you!" - Lotus1150 (Alberta, Canada; Aug 28, 2009)
  • "Great site and awesome photos." - David (Washington DC, USA)
  • "I loved your website. Even finding some news about Turkey made me surprised." - Anonymous (Turkey)
  • "Gorgeous site ... the kind of place you could lose yourself for hours (suppose that was intentional?). Also, cartoons, commentary on the events of the times, etc. Great stuff." - Daniel (Nevada, USA; Jan. 03, 2009)
  • "...may your blog, ideas and efforts help many more people." - Anonymous (New Mexico, USA)
  • "Very cool site..." - Anonymous
  • "Amazing site, worth the visit every time... enjoy." - Sam (Saudi Arabia)
  • "Easy to read and well-designed." - Colin (Arizona, USA; Apr. 22, 2009)
  • "Unique mix of news, photos and poetry." - Frasier (Virginia, USA)
  • "Worldculturepictorial.com/blog is an extremely interesting collection of news articles. It calls itself "A Window On the World". The site contains a wide variety of topics, all very informative and pertinent to life in today's world." - Cynthia (Massachusetts, USA; Aug. 07 2008)
  • "Wow. Cool." - Christopher (Melbourne, Australia; Dec. 10 2008)
  • "An interesting way to check out the wonders of our world." - Anthony (Ohio, USA)
  • "Nice site, especially the rss icon." - Daniel (California, USA; Sep 10, 2008)
  • "Good blog - Everything from news to photography. Very informative." - "explicitmemory" (Texas, USA)
  • "Very informative site by prose and picture..." - Jeff (Michigan, USA)