« | »

Economy Loses 85K Jobs – Unexpectedly

From an unexpectedly candid Associated Press:

Economy loses 85K jobs, unemployment rate steady

By Christopher S. Rugaber, AP Economics Writer

January 8, 2010

WASHINGTON – Lack of confidence in the economic recovery led employers to shed a more-than-expected 85,000 jobs in December even as the unemployment rate held at 10 percent. The rate would have been higher if more people had been looking for work instead of leaving the labor force because they can’t find jobs.

The sharp drop in the work force — 661,000 fewer people — showed that more of the jobless are giving up on their search for work. Once people stop looking for jobs, they are no longer counted among the unemployed.

When discouraged workers and part-time workers who would prefer full-time jobs are included, the so-called "underemployment" rate in December rose to 17.3 percent, from 17.2 percent in November. That’s just below a revised figure of 17.4 percent in October, the highest on records dating from 1994.

What is truly unexpected is to see these admissions from the Associated Press.

Many analysts had hoped Friday’s report would show the economy gained jobs for the first time in two years.

While the revised figures found an increase in November, it was tiny. Job openings remain far too few.

"One word sums it up: Disappointment," said Jonathan Basile, an economist at Credit Suisse.

These are those perpetually surprised analysts that the AP always turns to, despite their never having once been correct in their predictions.

Referring to the drop in the labor force, Basile said, "that tells me that Main Street doesn’t believe there’s a recovery yet, because they’re not out looking for jobs yet."

Wait a minute. The lead (lede) paragraph claims employers aren’t hiring because the don’t believe in the recovery. Now we are being told that people aren’t looking for work because they don’t believe in the recovery.

Wouldn’t people who are out of work look for employment whether they believed in the economy or not?

Revisions to the previous two months’ data showed the economy actually generated 4,000 jobs in November, the first gain in nearly two years. But the revisions showed it also lost 16,000 more jobs than previously estimated in October.

Once again, during the Obama administration these numbers are always quietly revised downward, just as they were always quietly revised upward under Bush.

The report caps a disastrous year for U.S. workers. Employers cut 4.2 million jobs in 2009. And the unemployment rate averaged 9.3 percent. That compares with an average of 5.8 percent in 2008 and 4.6 percent in 2007. Nearly 15.3 million people are unemployed, an increase of 3.9 million during 2009.

To be fair that is leaving out all of the untold (and untellable) millions of jobs Mr. Obama saved or created.

Such as new careers as unicorn washers.

And then there is also this, from the ever-cheery Associated Press:

UPS cutting 1,800 jobs in US, raising outlook

January 8, 2010

ATLANTA – UPS said Friday it will cut 1,800 management and administrative positions to streamline its U.S. small package segment.

The world’s largest package delivery company also raised its profit forecast for the fourth-quarter that ended in December, citing improving operations and cost cuts.

About 1,100 employees will be offered a voluntary separation package as part of the work force reduction, UPS said.

UPS has 408,000 employees worldwide. About 340,000 of those workers are in the U.S. The small-package segment, where most of the cuts will come, handles shipments of up to 150 pounds by ground and air…

Isn’t this an odd headline and strangely upbeat article?

Would we have seen cutting jobs and raising profits put quite this way under the ‘Bush recession’?

This article was posted by Steve on Friday, January 8th, 2010. Comments are currently closed.

14 Responses to “Economy Loses 85K Jobs – Unexpectedly”

  1. proreason says:

    James Pethokoulis explains the full report.

    http://blogs.reuters.com/james-pethokoukis/2010/01/08/what-the-december-jobs-report-means/

    His bottom line “a fairly sharp drop in the labor force participation rate means this months “stable” 10% unemployment rate is worse than it looks”

    My note: “drop in the labor force participation rate” means that more people have become discouraged and stopped even looking for work. This is according to the Moron’s plan. They are now totally dependent on gubamint ben’fits, relatives, and / or illegal activities. In other words, they are Obamy voters.

    • proreason says:

      Another Pethokoulis nugget:

      “Had it stayed stable for last month, the jobless rate would have been 10.4 percent. Had it stayed stable since August, the jobless rate would be 11 percent! ”

      In other words, people dropping out of job searches actually IMPROVE the unemployment numbers!! It’s Orwellian. If the government didn’t exclude them, just since August, the jobless rate would be 10% worse than it show.

      And there are numerous otherfactors that improve the governments numbers as well. Just one of them is that the INCREASE in useless government jobs skews the stats. The loss of jobs that produce real things is much worse than 10%.

  2. tranquil.night says:

    Yeah, 10% is going to be the new normal for a long time while things go from 15%-25% in reality this year.

    I completely understood that the Stimulus was designed to do nothing in 2009 but still thought that when the economy got bad enough they’d trigger it to artificially normalize the numbers for a bit, at least to get them through an election. But $500k for ant colony research, $390k on malt liquor research, $150k on puppet shows and millions in political payouts? It really was just a slush fund and it seriously doesn’t look like they’re going to use it as anything else.

    That’s kind of scary since it should confirm the idea that these particular fascists don’t care about what they do to their legitimate political cover (the Democrat Party) now that they’re in power.

    • proreason says:

      The longer a person has been out of work, the more that person needs the government.

      That’s their calculus.

      But still, expect some startlingly good numbers beginning in late summer. Things will mysteriously begin to improve dramatically about that time.

      In addition, Congress will pass some major legislation guaranteed to create millions of jobs shortly before the elections. They’re alwasy looking out for the people, you know…..especially so before an election

    • Rusty Shackleford says:

      I think this is where that “National Security Force” comes in, that has is as equally funded as the police and the military but without the requirements.

      Sure, the only logical thing the government can do, other than pay people for doing nothing, which actually has never been a problem for them, but when people squawk loudly enough, they put the non-workers in a special uniform and give them jobs and duties to perform. Unskilled, untrained and unqualified, but “employed” by GovCo. It will be another sham, with people collecting money for never working a single day, but the government will back them and call us racists for making such accusations; The MSM will fail to report any abuses by the NSF workers.

      GovCo will only do this if they think it will improve their standing….and obviously, making people actually even APPEAR to be responsible for the welfare they receive will work against that end.

      ACORN is the testing ground for this program. They will iron out all the kinks before they create the real stormtroopers. But then, to create a standing army, one that functions and operates efficiently, requires a certain amount of understanding and dedication. So…perhaps trying to get millions on the government dime to be part of the NSF is a hilarious thought to begin with.

    • Right of the People says:

      Rusty,

      I thought that’s what the SEIU is. They have that thuggery thing down!

    • Perdido says:

      You’re right about the Slush Fund. It will be used in the upcoming elections. ‘magine that! The Democrat Party using ill-gotten government (taxpayer) money to further the cause.

      The depth of the corruption is breathtaking!

  3. VMAN says:

    And exactly how do you measure people who have given up on looking for work? I guess the same way you determine how many jobs are “saved”.

  4. Melly says:

    Everything seems to be going according to Barry’s plan.
    Lucky him.

  5. Zilla says:

    Well, there is SOME good news. After 18 months of unemployment, a few months of being homeless, I have finally gotten a job and moved to Colorado.

    • Perdido says:

      That is good news. God Bless!

    • Steve says:

      Excellent!

    • Congratulations Zilla! Perhaps your being there can help tip the balance back in that state from its blue project status while you are there…

    • ptat says:

      Wow, Zilla, you must have some story to tell. Were you laid off? From doing what? Is your new job a good one? did you have to take a huge pay cut? I was laid off a year ago from a $65,000 a year career(15 years) sales rep job and haven’t been able to find work since.


« Front Page | To Top
« | »