Job losses: Worst in 5 years

[Breeze54]

Job losses: Worst in 5 years

By Chris Isidore, CNNMoney.com senior writer
Last Updated: March 14, 2008: 10:56 AM EDT

http://money.cnn.com/2008/03/07/news/economy/jobs_february/index.htm?cnn=yes

Payrolls sink in February, fueling recession anxiety. Unemployment rate declines,
but that's because there are fewer people in the workforce.

There was a net loss of 63,000 jobs, which is the biggest decline since March 2003 and weaker
than the revised 22,000 jobs lost in January. Economists had forecast a gain of 25,000 jobs.

The weak report fueled already mounting recession fears and is likely to keep the Federal Reserve
cutting interest rates further when it meets later this month.

"Based on today's Employment Report, if we are not in a recession, it is a darned good imitation
of one," said Kevin Giddis, managing director of fixed income at Morgan Keegan. "We are in an
unprecedented real estate and credit crisis that is whipping its way through the U.S. economy
like a Midwestern tornado."

Job losses were widespread, reaching beyond the battered construction sector, which lost 39,000,
and manufacturing, where job losses hit 52,000.

Retailers cut 34,000 jobs.

Temporary staffing firms cut nearly 28,000 from their payrolls, another warning sign of employers
pulling back.

Hotels cut about 4,000 jobs, a sign that discretionary consumer spending could be on the wane.

Overall the private sector cut 101,000 jobs, with only a gain in government employment limiting losses.

"Job growth appears to have weakened across nearly every industry with the exception of health
care and government," said Keith Hall, the commissioner of the Bureau of Labor Statistics,
which prepares the jobs report, testified Friday before a congressional committee.

Hall would not give a forecast for hiring, but others said the latest report suggests more job
losses likely lay ahead.

"Businesses have become too pessimistic about the outlook for the economy, and the capacity of
the Bush Administration and Federal Reserve to manage it, to be adding new employees or replacing
those that leave," said University of Maryland professor Peter Morici.

Underlying weakness

Despite the loss, the unemployment rate improved to 4.8% from the 4.9% reading in January.
Economists had forecast the unemployment rate would rise to 5%. A survey of households is used
to estimate the unemployment rate, while a survey of employers that is considered to be more
accurate sets the readings on the changes in payrolls.

The unemployment rate fell because of an increase of 450,000 people whom the government
no longer counts as being part of the labor force for a variety of factors, such as that
they are not currently looking for work. That drop in the size of the labor force allowed for
he modest decline in unemployment, even as the household survey showed 255,000 fewer Americans
with jobs than in January.

Hall conceded in his testimony Friday that the labor market was weaker than suggested by the
decline in the unemployment rate. He pointing to an increase of 637,000 workers over the past
12 months who have part-time jobs but would prefer to be working full time.

More....

[marmar]

1. The Pyramid Scheme is over.....

..... An economy based on Enron-esque accounting tricks can't keep up the facade forever.

[Breeze54]

2. Yup and this report should

stop asshats telling poor people to just "get a job" instead of going to Food Pantries when they're hungry! :grr: