U.S. Jobs Down 20,000 in April. Don’t Bring Out the Party Hats Yet

[Omaha Steve]

http://blog.aflcio.org/2008/05/02/us-jobs-down-20000-in-april-dont-bring-out-the-party-hats-yet/

by Tula Connell, May 2, 2008

The economy shed another 20,000 jobs in April, the fourth monthly decline this year, further confirming that a recession is under way. However, because many economists had predicted an April job loss in the 75,000 range, news headlines and broadcasts are breathing big sighs of relief.

But an improvement in excessively low expectations does not necessarily result in good news. Looking a bit deeper into the report, more troubling signs emerge:

Employees also appear to be working fewer hours, and for less pay. Among rank-and-file workers, who make up about three-quarters of the workforce, average weekly salaries fell 0.2 percent in April, and average hourly earnings rose an anemic 0.1 percent.

In addition, some companies may be avoiding layoffs by cutting back on employee hours. The number of hours worked fell in April, by 0.3 percent among private employers, the second decline this year.

Less pay, indeed:

The average hourly wage edged up only a penny to $17.88, the smallest gain in almost two years. The slim increase in pay, coupled with reduced hours, led to the biggest drop in weekly wages in almost two years.

The construction and manufacturing sectors are especially hard hit with the roiling mortgage crisis and spiraling oil cost. Manufacturers shed 46,000 jobs in April, and construction companies laid off 61,000 workers, according to the U.S. Bureau of Labor Statistics (BLS).

The BLS also revised the number of jobs lost in March and February, worsening the job loss over those two months by 8,000.

With a four-month net loss of 260,000 jobs in 2008, even this latest report, which moved the jobless rate from 5.1 percent to 5 percent, isn’t being hailed as a turnaround by corporate economists.

“There may be a limit to the downside as to how bad the economy will get, but don’t get too optimistic here,” said John Silvia, chief economist at Wachovia.

[Snarkoleptic]

1. The repugs are cooking to books to avoid having to admit we're in recession.

"With a four-month net loss of 260,000 jobs in 2008, even this latest report, which moved the jobless rate from 5.1 percent to 5 percent, is not being hailed as a turnaround by corporate economists. "

So we added a shitload of newly unemployed people and yet the jobless rate declined?!?!

The reasons for this are easily explained-

1) Gov't statistics don't count those who've been out of work so long (6+ months) that they no are no longer eligible for unemployment compensation. This is a major driver in the foreclosure crisis since jobs are few and far between.

2) A great many are now underemployed. I make half what I made a year ago and recently hired my former boss who's making a third of his former income. He's a 'double dipper' since he went over 6 months with no job until I got him hired at a third his former pay.

One more point, booosh and his myopic accountants stated that the economy grew 0.6% last quarter.
To cook the books and come up with positive growth, they made a low-ball estimate of inflation at 2.4%.

Most people realize that the economy certainly did not grow last quarter.
Most people also recognize that inflation was WAAAAY over the 2.4% annualized figure the gubmint handed us.

If their mouths are moving...they're lying!

[Old Codger]

2. you bet

These numbers come from the current administration, and I really really believe what they tell me.. LOL Original numbers for Jan. were in the 40 50,000 range 2 months later they were "adjusted" to 76,000.. small discrepancy there don't ya think..