Jobless rate bolts to 8.5 %, highest since 1983

[calfoxwc]

Jobless rate bolts to 8.5 percent, 663K jobs lost

Jobless rate jumps to 8.5 percent, highest since late 1983; payrolls drop 663,000

• <LI class=byline>Jeannine Aversa, AP Economics Writer
• Friday April 3, 2009, 1:05 pm EDT

• If part-time and discouraged workers are factored in, the unemployment rate would have been 15.6 percent in March, the highest on records dating to 1994, according to Labor Department data released Friday.

The average work week in March dropped to 33.2 hours, a new record low. Since the recession began in December 2007, the economy has lost a net total of 5.1 million jobs, with almost two-thirds of the losses occurring in the last five months.

"It's an ugly report and April is going to be equally as bad," predicted Mark Zandi, chief economist at Moody's Economy.com.

The deterioration in the jobs market and a worse-than-expected reading of the strength of the services sector in March come despite a few hopeful signs recently that the recession -- now the longest since World War II -- could be easing.

Orders placed with U.S. factories actually rose in February, ending a six straight months of declines, the government reported Thursday. Earlier in the week, there was better-than-expected reports on construction spending and pending home sales. And last week a report showed that consumer spending -- an engine of the economy -- rose in February for the second month in a row -- after a half-year of declines.

The job market traditionally doesn't rebound until well after a recovery starts. But the stock market generally bottoms out before the economy, and stocks have been rising for three weeks.

The Dow Jones industrial average spent most of Thursday over 8,000, the first time that happened since early February, before adding 216 points to close at 7,978. The Dow dropped about 15 points in afternoon trading.

Last month's tally of job losses was slightly higher than the 654,000 that economists expected. The rise in the unemployment rate matched expectations.

Employers cut 651,000 jobs in February when the jobless rate was 8.1 percent, the same as initially estimated. January's job losses, however, were revised much higher, to 741,000 from 655,000. Figuring prominently into that downgrade: much deeper job cuts in construction and professional and business services. January marked the worst payroll losses since the fall of 1949.

The number of unemployed people climbed to 13.2 million in March. In addition, the number of people forced to work part time for "economic reasons" rose by 423,000 to 9 million. Those are people who would like to work full time but whose hours were cut back or were unable to find full-time work.

Looking forward, economists expect monthly job losses continuing for most -- if not all of -- this year.

However, they are hoping that payroll reductions in the current quarter won't be as deep as the roughly 685,000 average monthly job losses in the January-March period.

In the best-case scenario, employment losses in the present quarter would be about half that pace, some economists said. That scenario partly assumes the economy won't be shrinking nearly as much in the present quarter.

But as the economic downturn eats into their sales and profits, companies are laying off workers and resorting to other cost-saving measures. Those include holding down hours, and freezing or cutting pay, to survive the storm.

Job losses were widespread last month. Construction companies cut 126,000 jobs. Factories axed 161,000. Retailers got rid of nearly 50,000. Professional and business services eliminated 133,000. Leisure and hospitality reduced employment by 40,000. Even the government cut jobs -- 5,000 of them.

Education and health care were the few industries showing any job gains.

Meanwhile, the services index from the Institute for Supply Management, a Tempe, Ariz.-based trade group of purchasing executives, fell to 40.8 last month from 41.6 in February. Economists surveyed by Thomson Reuters expected the index to edge up to 42.

Any reading below 50 indicates contraction.

The report, released Friday, is based on a survey of the institute's members in 18 industries and covers such indicators as new orders, employment and inventories. About three-quarters of Americans work in service-providing industries such as hotels, retail, education and health care.

Federal Reserve Chairman Ben Bernanke said the recession could end later this year, setting the stage for a recovery next year, if the government is successful in bolstering the banking system. Banks have been clobbered by the worst housing, credit and financial crises to hit the country since the 1930s.

Even if the recession ends this year, the economy will remain frail, analysts said. Companies will have little appetite to ramp up hiring until they feel the economy is truly out of the woods and any recovery has staying power.

Given that, many economists predict the unemployment rate will hit 10 percent at the end of this year. The Fed says unemployment will remain elevated into 2011.

Economists say the job market may not get back to normal -- meaning a 5 percent unemployment rate -- until 2013.

"There's going to quite a long haul before you see the jobless rate head down," said Bill Cheney, chief economist at John Hancock Financial Services.

To brace the economy, the Fed has slashed a key bank lending rate to an all-time low and has embarked on a series of radical programs to inject billions of dollars into the financial system.

And the Obama administration had launched a multi-pronged strategy to turn the economy around. Its $787 billion stimulus package includes money that will flow to states for public works projects, help them defray budget cuts, extend unemployment benefits and boost food stamp benefits.

The administration also is counting on programs to prop up financial companies and reduce home foreclosures to help turn the economy around.

Still, skittish employers announced more job layoffs this week.

3M Co., the maker of Scotch tape, Post-It Notes and other products, said it's cutting another 1,200 jobs, or 1.5 percent of its work force, because of the global economic slump. Healthcare products distributor Cardinal Health Inc. said it would eliminate 1,300 positions, or about 3 percent of its work force, and semiconductor equipment maker KLA-Tencor Corp. said it will cut about 600 jobs, or 10 percent of its employees.

[heckofajobbrownie]

I know facts don't matter on here, but the recession started in December of 2007, Cal.

[PBJ]

@heckofajobbrownie said:

I know facts don't matter on here, but the recession started in December of 2007, Cal.

It may have started in December of 2007, but don't you think an anti-christ would have special powers to affect things before they were in office?

[heckofajobbrownie]

You know, the way this board is I can't even tell if that's a joke.

[Mr. T]

North Carolina reported over 18% unemployed.

when will it reach 30%?

Where my wife works they will be making the third layoff of the year today and she expects it to bring their workforce to under half of where they were in the beginning of the year.

[calfoxwc]

It didn't really hit until sometime in late Sept... 08

and that was fear of an Obama socia.... er... presidency win.

Obama is becoming like the evil darkness over Mordor.

And conservatives are the hobbits who will save the day.

Mark Levin is Gandalf, and leftist liberals are the Orcs.

I don't know who would be Gollum. Maybe there's a bunch of them...

and liberty is the Ring, which Obama desperately wants for his own control of everything.

[Herman M]

i heard AIG & CitiBank are offering 2nd mortgages on cardboard boxes.

[mz.]

There's REALLY something wrong with you, cal. You've gone completely off the deep here. All of this blame, paranoia and just blind hatred isn't healthy for the body or mind.

You seem like a nice guy and I care. I can help push you in the right direction, therapy-wise. PM me.

[calfoxwc]

No, mz the pussy. You have no power for that. Actually, I was just joking and laughing with my wonderful cute

Wifie on the phone.

I do not like Obama's moves, and I'm wondering if he really is so out of touch with America that he thinks

we will follow him into the Soviet American States...

Meanwhile, I just posted a great article from a Dem, who is "lapsed"... and the main man of Russia

is calling Obama his "comrade".

I just think things are going in the really wrong direction. 55% of America now agrees with that, too.

Trust me on this: many, many Americans who voted for Obama are wondering what kind of

mess they bargained for and didn't know it.

[DieHardBrownsFan]

mz. said:

There's REALLY something wrong with you, cal. You've gone completely off the deep here. All of this blame, paranoia and just blind hatred isn't healthy for the body or mind.

You seem like a nice guy and I care. I can help push you in the right direction, therapy-wise. PM me.

ROFLMAO!

[Kosar_For_President]

mz. said:

There's REALLY something wrong with you, cal. You've gone completely off the deep here. All of this blame, paranoia and just blind hatred isn't healthy for the body or mind.

You seem like a nice guy and I care. I can help push you in the right direction, therapy-wise. PM me.

Yea I wonder what happened in his life to hate one group of people so much...

[mz.]

@calfoxwc said:

No, mz the pussy. You have no power for that.

I have no idea what "power" you speak of, but if you ever need any advice on the matter, please don't hesitate to PM me in confidentiality. I'm 100% serious.

[calfoxwc]

Then you really are a locked liberal cult member in real life?

Can't be true. Nobody can be like you and seriously exist in everyday life...

Like I said before, nobody hates anybody. You didn't like Bush, and put him

down most every hour of every freakin day of every freakin week.

I tend to only put Obama down once a day. That means I'm many, many

times better a man than you are, mz the pussy.

I'm "serious". If you want any coaching on how to have a LOT of friends,

and a very delightfully happy marriage, or you want some insight on how

to be a patriot in love with his country, PM me. I'll try to help you.

And if I can't, I'll get an appointment with you to see Mark Levin.

He's good, and could help you a lot.

And no, I'm not your comrade. I'm an AMERICAN.

[mz.]

@calfoxwc said:

That means I'm many, many times better a man than you are, mz the pussy.

Have it your way. You know where to find me.

[PBJ]

@danamal said:

Its Obama's fault.

America was fooled.

Communist ,socialist ,out of touch prompter reader ,empty suit ,muslim ,radical ,liberal....................

What else you got?

[Mr. T]

@danamal said:

Its Obama's fault.

America was fooled.

Communist ,socialist ,out of touch prompter reader ,empty suit ,muslim ,radical ,liberal....................

What else you got?

You're to easy.......

Obama's propagandistic iconography: the making of a messiah

http://www.renewamerica.us/columns/huston/080623

The snob.

This one is just to funny, are they healing her or coping a feel?

Ignorance is Bliss

Brain washed.... poor child.

[PBJ]

Yeah, and?

What did you expect? It was a political campaign. That was the whole point, and every politician tries to do that.

[Mr. T]

@pbj said:

Yeah, and?

What did you expect? It was a political campaign. That was the whole point, and every politician tries to do that.

Did I miss something? other than the fact that the whole Obama campaign was like American Idol.

And now all those who just wanted to say they voted for the first black president are left scratching their nuts and saying WTF did I do.

And at this time next year many will be wanting to file a extension when they see their tax bill.

[Westside Steve]

So, to the guys who bitched about the Reps blaming Clinton endlessly, when does the economy become Obama's problem?

Dems have been in control of both houses for over two years now.

Ever?

When it gets better on its own accord?

WSS

[calfoxwc]

So, Dan, do you blame Dodd and Pelosi and Reid and Schumer etc for the prime mortgage problem?

Or you blame Bush, who TRIED to get them to become aware of the impending crisis in 05, I think the year was...

Go ahead and deny it. Then I can post the videos AGAIN with those same stupid sheetz saying plain out

that there was absolutely no problem.

Obama's stated intentions has catapulted this recession into a major disaster.

Even Bill Clinton tried to get him to lighten up with it, (only after the election was over though), because

it was counter productive.

What exactly did Bush do to cause a recession via the prime mortgage problem, Dan?