Jobless rate rises as hiring slows

NF Reporter · 05-04-2007, 08:43 AM

AP - The nation's unemployment rate edged up to 4.5 percent in April as cautious employers added the fewest new jobs in more than two years, signaling that the labor market is starting to feel some of the strain of the sluggish economy.

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waltky · 08-25-2007, 11:54 PM

Subprime mess gonna affect the job market...

Subprime problem curbs job rate in U.S
Saturday 25th August, 2007 - In the U.S, subprime-battered mortgage lenders are shutting down and fewer homes are being built.

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The slowing U.S economy is now hitting the job market, and economists say it is only a matter of time before unemployment moves up on the scale. Economists are noting that growth is at the 2 per cent mark, which is not strong enough to keep the unemployment rate from rising.

Employment will remain the economic linchpin in the United States while jobs mean pay cheques, pay cheques mean spending, and consumer spending accounts for more than two-thirds of the U.S economy. Meanwhile, Wall Street is heading for another volatile week, with a possible reprieve from downward direction if the calm brought on by the Federal Reserve's surprise cut in its discount rate lasts.

The coming week will also feature a raft of economic indicators, including July existing home sales and preliminary figures on second-quarter gross domestic product, which should shed more light on the economy's health.

Subprime problem curbs job rate in U.S

waltky · 01-21-2008, 01:52 AM

People waitin' longer between jobs...

Long-term joblessness is growing
WASHINGTON, Jan. 21, 2008 -- Long-term joblessness has begun to show up in U.S. unemployment statistics even as the unemployment rate remains relatively steady, a report said.

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In November, almost 1.4 million Americans -- representing about 20 percent of all unemployed U.S. workers -- had been without work for at least 27 weeks, The Washington Post reported Monday. That is about twice as much long-term unemployment as the job market experienced prior to the 2001 recession, the newspaper said, and analysts say the problem threatens to intensify the impact of the current economic slowdown.

The phenomenon is spread more broadly throughout the economy than it has been in the past. Long-term unemployment has gone from affecting primarily manufacturing workers and people with little work history, education or skills, and is growing most rapidly among more experienced and college educated workers in white-collar positions.

The extended recovery that followed the 2001 downturn featured strong corporate profits, low inflation and record manufacturing output, the report said, but some economists have called the expansion a "CEO's recovery." Real wages have been mostly flat, poverty has grown and an unusually large number of unemployed people have had difficulty finding jobs.

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U.S. study: too many Ph.D.s in the job market
Jan. 21, 2008 -- College students aren't getting what they pay for, a recent New York report asserted. The problem is they're taking too many classes from part-time, or adjunct, professors who often lack the time and resources for focused teaching, which can lower student's performance.

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In its report last month, a 30-member commission called for New York's state (SUNY) and city (CUNY) systems to alleviate the over reliance on adjuncts by hiring 2,000 more full-time faculty for their 87 campuses. But just one page away, the report also called for adding at least 4,000 new doctoral students. There's a connection between those numbers that deserves more attention. In many fields, there are already too many Ph.Ds awarded for the full-time academic posts available, creating a surplus of likely jobseekers. That pool becomes adjuncts, who command wages and benefits so low that universities find them irresistible hires.

"It's not uncommon to have a disconnect like this in higher education, in which people are both concerned about the difficult career prospects being faced by recent Ph.D. graduates and concerned there aren't enough Ph.D. students," said Michael Teitelbaum, of the Alfred P. Sloan Foundation. Jeff Crane, an artist who teaches two art courses at SUNY-New Paltz, says he likes working part-time so he can paint, but thinks he should be paid equitably. He earns about 5,200 U.S. dollars per semester for teaching two courses.

The national average for full-time assistant professors is about 60,000 dollars, and 100,000 dollars once they get tenure. Crane says many of his colleagues work mostly for the health insurance, which, unlike many places, New Paltz offers to adjuncts. "We have flooded the labor market with Ph.Ds who can't get jobs doing what they've been trained to do," said Cat Warren, a North Carolina State English professor and state American Association of University Professors leader, who recently gave a talk to graduate students at nearby Duke warning them to be realistic. "I think we have to think very hard about that."

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waltky · 02-02-2008, 04:56 PM

Gonna be tough for a long while to come...

Why job market is even worse than you think
February 2 2008: Nation's first job loss in more than four years tells only part of the story of the weak labor market. The ranks of the long-term unemployed are growing.

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A government report on January jobs showing that employers trimmed payrolls for the first time in four years set off alarm bells. But the report, which was released Friday, tells only part of the story about the underlying weakness in the labor market.

The number of Americans out of work for at least six months is rising - reaching levels more typically seen deep into a recession or period of job contraction, not at the beginning. And while some economists believe that the drop in jobs reported in January might later be revised away to show a narrow gain, it's clear that the rise in long-term unemployment is a far more established trend and one economists say isn't going away anytime soon.

Harder to find a new job. The number of long-term unemployed stood at a seasonally-adjusted 1.4 million in January, up about 21% from year-earlier levels and up 3% from the previous month. The full-year average for 2007 was 1.2 million long-term unemployed, nearly double the reading for 2000 - just before the last recession. For all of 2007, about 17.6% of those who were unemployed had been out of work six months or more. That compares to only 11.4% who were long-term unemployed in 2000.

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bizwiz · 02-02-2008, 08:05 PM

This effect is due to the sub prime crisis. Both the real estate market and banks has lost all together range in the billions of dollars, so it's no surprise that they are forced to layoff people in order to recoup their losses. But I hope they gave their employees nice severance packages.

sunken · 02-02-2008, 09:27 PM

It's not just the banks that have to lay off, it's the construction workers. A friend of mine is plumber in North Carolina. He says that a lot of people are out of work there, mainly construction. Unfortunately, it's a domino effect. Those people don't spend money, then stores don't get enough to pay their employees, etc, until you are in a downward spiral.

The unemployment rate is really a poor indicator of the actual amount of people not working. They don't consider anyone who's unemployment has run out, or is not on it.

h1dro · 02-03-2008, 04:56 PM

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Originally Posted by sunken

The unemployment rate is really a poor indicator of the actual amount of people not working. They don't consider anyone who's unemployment has run out, or is not on it.

I disagree, the unemployment is an excellent indicator for the amount of the unemployed. The only downside is it does not take into account discouraged workers. I believe the Bureau of Labor Statistics does an excellent job calculating the factors which account for the unemployment rate, additionally I don't believe I could do a better job excluding these factors that hasn't already been thought of.

waltky · 03-09-2008, 09:59 PM

Global slowdown raising unemployment in China...

'Severe' jobless problem in China
Sunday, 9 March 2008, The Chinese Labour Minister is calling for better training

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China is facing a very severe unemployment problem, says Labour Minister Tian Chengping. He said 20 million new workers entered the labour market each year, chasing only 12 million jobs. Speaking on the sidelines of the annual National People's Congress in Beijing, Mr Tian said the aim was to keep urban unemployment at or below 4.5%. China is aiming to create 10 million new jobs this year and find work for 5m sacked workers, he added. Correspondents say China's unemployment figures tend to understate the situation as they only cover the urban jobless.

Labour laws

Economic growth in China was more than 11% last year, but there are fears that a downturn in the United States could affect exports and job creation. The authorities also face pressure from large numbers of university graduates entering the job market. Some employers have said new labour legislation is worsening the problem as it is too restrictive and hampers job creation.

Mr Tian rejected this. "One can have expanding employment and a good investment environment alongside protection for workers and harmonious labour relations," he said. The new legislation makes it easier for workers to obtain continuing contracts and also requires companies to contribute more to pension and insurance funds. The laws were brought in after complaints about the treatment of workers including reports of wages going unpaid.

BBC NEWS | Asia-Pacific | 'Severe' jobless problem in China