Here's a note on economic indicators. One of the one we look at most often is unemployment -- but does it really tell us anything?
From Bigmoney.comPosted Sunday, September 27, 2009 - 6:03amAre things getting better or worse? Jobless data could prove either. Two reports on unemployment—one leading the New York Times’ business coverage, and the other, Bloomberg’s exclusive news section—underscore the diverging conclusions one can easily make from the mounds of reports. According to the NYT, “job seekers now outnumber openings six to one, the worst ratio since the government began tracking open positions in 2000" and up from January's 4-to-1 ratio. Meanwhile, however, Bloomberg reports that employers likely cut fewer jobs in September and manufacturing expanded for a second month, according to a survey of economists interviewed by the news service ahead of an Oct. 2 labor department report.
Overall the data reiterate what we’ve been hearing for months: that the recovery could be a jobless one. “Even though the pace of layoffs is slowing, many companies remain anxious about growth prospects in the months ahead, making them reluctant to add to their payrolls,” the NYT says, adding that "the dearth of jobs reflects the caution of many American businesses when no one knows what will emerge to propel the economy." Indeed, once demand picks up, the paper says that businesses have pared back so many working hours for those still left on the payroll that companies can simply leverage their work force by adding more hours rather than more people.
By Sara Behunek
Great to hear for those of us graduating in December...or not.
ReplyDeleteI am very happy that I have a secure job in this economic climate; especially since I work in the construction industry. My firm serves as the Program Manager on a large project in Cincinnati and we are under contract so our jobs are secure at least through 2012. That offers some piece of mind during these rough times.
ReplyDeleteI second Steve; it's not a good time to be looking for a job, but at least we all will have the advantage of a graduate degree added to our resume.
ReplyDeleteI can believe some companies have pared back working hours in some areas like auto manufactures. I have also seen that some companies are working people more by having fewer people cover more jobs and thereby wear more hats. In those cases, those companies will be hiring more people if demands increase.
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