Jobless claims climb

[BOBDN]

The jobless recovery continues.

Corporations have found a way to engineer a recovery without including workers.

Nice for them. How exactly do we have a "recovery" without jobs?

From Rueters on the NY Times Business page.

Treasuries Bounce as U.S. Jobs Data Weak
By REUTERS


Filed at 9:29 a.m. ET

NEW YORK (Reuters) - Treasuries enjoyed a rare bounce on Thursday after U.S. jobs data proved surprisingly weak, so countering the recent tide of upbeat news on the economy.

Jobless claims climbed to 413,000 last week from a revised 398,000 the week before, confounding analysts who had looked for a dip to 390,000.

The figures showed that even if economic growth was accelerating sharply, it had yet to generate jobs and stirred speculation Friday's payrolls report would also disappoint.

Data on second quarter productivity offered one reason why the recovery had been jobless so far. Productivity, or output per hour, was revised up to an impressive 6.8 percent from an already lofty first estimate of 5.7 percent.

That suggested employers were getting more than enough out of their current work force and had no need to hire new people.

"You have to be careful reading too much into these weekly figures,'' said Michael Cloherty, a fixed-income strategist at Credit Suisse First Boston, noting the Labor Bureau itself warned that more states than usual were late in reporting because of the holiday weekend.

"But the fact the (bond) market reacted at all just shows how keyed-up people are about jobs right now,'' he added. ``If prices can move this much on the weekly numbers, the reaction to payrolls could be violent indeed.''

Median forecasts are for payrolls to rise a slight 12,000 in August after a 44,000 drop in July.

The benchmark 10-year note (US10YT-RR) rose 12/32 in price, taking its yield down to 4.55 percent from 4.60 percent at Wednesday's close.

Five-year notes (US5YT-RR) firmed 9/32 for a yield of 3.53 percent from 3.59 percent, while the two-year (US2YT-RR) added 3/32 giving a yield of 1.96 percent from 2.01 percent. The 30-year bond (US30YT-RR) gained 8/32 for a yield of 5.34 percent from 5.35 percent.

Traders emphasized the main reason for the pause in the debt market's downtrend was that speculators were so very short of Treasuries, having borrowed bundles of them to sell in recent weeks.

With much of the market positioned one way, it did not take much to prompt a short-covering squeeze. In this case, the bounce owed much to Japan.

First JGBs rallied, so helping global bonds in general, after the Bank of Japan vowed to maintain its super-easy monetary policy. Then, the BOJ intervened to buy dollars for yen and traders assumed a good chunk of those dollars would be parked in Treasuries.

The market still has a lot more news to digest on Thursday. Figures on July factory orders and the Institute for Supply Management's August survey of the service sector are yet to come.

And no less than five top officials at the Federal Reserve give speeches on the economy and the bond market.

 

[Moonbeam]

Burring the dead will boost the economy and boost Job in the mortuary business, but it takes time for death benefits to trickle down.

 

[rudder]

Corporations have found a way to engineer a recovery without including workers.

The recovery includes workers. These workers maybe in India and the Phillipines, but they should still be included.

 

[BOBDN]

Originally posted by: rudder
Corporations have found a way to engineer a recovery without including workers.

The recovery includes workers. These workers maybe in India and the Phillipines, but they should still be included.

Great. With our "recovery" creating jobs over there we face wage competition from people earning a couple of dollars a week. Good idea to include them in OUR "recovery."

I hope you don't mind third world living standards. If the current trend continues we'll be a third world nation soon too. Maybe then US corporations won't mind creating a few jobs here too.

 

[dmcowen674]

6 more Factories closed last week here in Georgia with those Companies shipping the jobs overseas. At this rate Georgia will not have any Factories in the State left. They are even talking about the Ford plant at the Atlanta airport closing.

 

[xochi]

The AP's spin on this is PRODUCTIVITY SOARED LIKE AN EAGLE in the 2Q03.

ROLFLMAO!

Productivity Soars in 2nd Quarter
1 hour, 44 minutes ago

By JEANNINE AVERSA, Associated Press Writer

WASHINGTON - The productivity of U.S. companies in the second quarter posted the biggest gain in more than a year as businesses produced more with fewer workers. New claims for unemployment benefits climbed last week to the highest level since the middle of July.

The pair of reports released Thursday by the Labor Department (news - web sites) underscored some of the strains facing U.S. workers even as the economy shows signs of gaining momentum.

Productivity ? the amount an employee produces for each hour of work ? soared at an annual rate of 6.8 percent in the April-to-June quarter, even stronger than the government's first estimate of a 5.7 percent growth rate. The revised reading was better than the 6.4 percent growth rate economists were predicting and marked the largest increase since the first quarter of 2002.

In the second report, the department said new applications for jobless benefits jumped by a seasonally adjusted 15,000 to 413,000 for the work week ending Aug. 30.

The rise propelled claims to their highest point since the week ending July 12 and pushed them above 400,000, a level associated with a weak job market. In the prior two weeks, claims managed to move below that threshold, raising hopes among economists that the pace of layoffs was slowing.

Although recent economic reports have displayed signs that the economy is rebounding, businesses still remain cautious, especially when it comes to hiring workers, economists said. They want profits to improve and they want to feel more confident about the vigor of the rebound before they go on a hiring spree, analysts say.

Economists expect the nation's unemployment rate to stay stuck at 6.2 percent when the government releases the employment report for August on Friday. Economists say that the battered job market will be one of the last areas of the economy to recover.

Even so, with other parts of the economy on the mend, economists believe the Federal Reserve (news - web sites) probably will hold a key short-term interest rate steady at a 45-year low of 1 percent when its meets on Sept. 16. Low short-term rates, along with President Bush (news - web sites)'s third tax cut, should induce consumers and businesses to step up spending and investment, thus boosting economic growth, analysts say.

The 6.8 percent productivity growth rate registered in the second quarter was three times faster than the 2.1 percent growth rate posted in the first quarter, which from an economic perspective is good news.

For the economy's long-term health and rising living standards, solid productivity gains are crucial. They allow the economy to grow faster without triggering inflation. Companies can pay workers more without raising prices, which would eat up those wage gains. And, productivity can bolster a company's profitability.

One recent consequence of improving productivity, however, has been an ability of many businesses to pare existing work forces and still meet increases in demand, says Federal Reserve Chairman Alan Greenspan (news - web sites).

In the second quarter, businesses produced more with fewer employees, leading to a decline in hours worked.

Businesses boosted output at a brisk 4.4 percent rate in the second quarter, up from a 1.4 percent growth rate in the first quarter. But workers' hours were cut at a 2.3 percent rate in the second quarter, following a 0.7 percent rate of decline in the prior three months.

People who kept their jobs, however, made gains. Workers' hourly compensation, adjusted for inflation, rose at a 3.2 percent rate in the second quarter, up from a 0.2 percent growth rate in the first quarter.

Companies' unit labor costs, meanwhile, fell at a rate of 2.8 percent in the second quarter, boding well for profit margins. That compared with a 2 percent growth rate in the first quarter.

 

[BOBDN]

Companies' unit labor costs, meanwhile, fell at a rate of 2.8 percent in the second quarter, boding well for profit margins. That compared with a 2 percent growth rate in the first quarter.

This should read, "US workers take it in the neck so the thieves at the top can get an extra million or two tacked on to their already sinful multi-million dollar salaries."

Like Verizon here in NJ. Laying off workers while the CEO and senior managers get even bigger bonuses.

And service is definitely suffering. Try to call Verizon with a phone service problem and you don't even get a customer service rep anymore. You have to request service through a voice menu. Then within a day they have someone call you to try to talk you out of the necessity for a service call.

But it's OK. It bodes well for profit margins.

 

[Ferocious]

A company near where I live has just announced a major restructuring.

The word is that the restructuring will mean plant closing.

The word is that 1300 good paying jobs will be lost and the work will be shipped overseas.

The company is no sign of trouble and is making a nice profit and pays dividends.

 

[HeroOfPellinor]

I can't believe Bush hasn't waved the magic wand that all Presidents have that magically creates hundreds of thousands of jobs.

 

[rudder]

Originally posted by: BOBDN

Originally posted by: rudder
Corporations have found a way to engineer a recovery without including workers.

The recovery includes workers. These workers maybe in India and the Phillipines, but they should still be included.

Great. With our "recovery" creating jobs over there we face wage competition from people earning a couple of dollars a week. Good idea to include them in OUR "recovery."

I hope you don't mind third world living standards. If the current trend continues we'll be a third world nation soon too. Maybe then US corporations won't mind creating a few jobs here too.

Sorry I forgot who I was replying to. Next time I will include the [sarcasm] [/sarcasm] tags.

 

[BOBDN]

Originally posted by: HeroOfPellinor
I can't believe Bush hasn't waved the magic wand that all Presidents have that magically creates hundreds of thousands of jobs.

Well he didn't. Instead he waved the magic wand all presidents have and in three short years LOST THREE MILLION JOBS!

If the moron was capable of creating any jobs he'd sure as hell take credit, wouldn't he?

He's also responsible for losing them then, isn't he?

His policies and irresponsible tax cuts led to the current economic crisis. Stop apologizing for his mistakes and face the facts.

 

[rchiu]

How blind can people be? If there is a recovery and working people are not better off, where does the GDP/money generated by the recovery goes?

Doesn't take a genius to figure out that this economy recovery is concentrated on the top percents of income group because of the Tax cut policy and business friendly policies in the expense of rest of income groups.

 

[HeroOfPellinor]

Originally posted by: rchiu
How blind can people be? If there is a recovery and working people are not better off, where does the GDP/money generated by the recovery goes?

Doesn't take a genius to figure out that this economy recovery is concentrated on the top percents of income group because of the Tax cut policy and business friendly policies in the expense of rest of income groups.

So, genius, I guess we create jobs by taxing the hell out of businesses?

 

[Bigdude]

Clinton is to blame! His massive tax increases, and regulations on business have caused this.

 

[xxxxxJohnGaltxxxxx]

Originally posted by: HeroOfPellinor

Originally posted by: rchiu
How blind can people be? If there is a recovery and working people are not better off, where does the GDP/money generated by the recovery goes?

Doesn't take a genius to figure out that this economy recovery is concentrated on the top percents of income group because of the Tax cut policy and business friendly policies in the expense of rest of income groups.

So, genius, I guess we create jobs by taxing the hell out of businesses?

Yea, you didn't get the memo? As taxes (or the cost of doing business) go up, corporations hire more workers to produce more goods and services at an increased cost to consumers which facilitates increased demand. That's Liberalonics 101, silly.

 

[Moonbeam]

What with this f*cked up war in Iraq, long stints, and 130 degree heat not too many trained soldiers are going to stay in the military if there are jobs in the private sector to go to. We may require massive unemployment just for national security.

 

[CADsortaGUY]

Originally posted by: Moonbeam
What with this f*cked up war in Iraq, long stints, and 130 degree heat not too many trained soldiers are going to stay in the military if there are jobs in the private sector to go to. We may require massive unemployment just for national security.

Are you hogging the "good stuff" again?
Remember it is "toke....toke...pass..."

Now seriously - why would you make the comment that National Security would require massive unemployment.?

CkG

 

[BOBDN]

National security doesn't require massive unemployment.

The Bush administration neo-con world domination agenda requires plenty of bodies for their war machine which can be supplied by making jobs scarce making enlistment the only alternative. No draft just the economic necessity of going to work for Uncle Sam.

 

[CADsortaGUY]

Originally posted by: BOBDN
National security doesn't require massive unemployment.

The Bush administration neo-con world domination agenda requires plenty of bodies for their war machine which can be supplied by making jobs scarce making enlistment the only alternative. No draft just the economic necessity of going to work for Uncle Sam.

Man, why do I keep getting skipped. It's - toke-toke-pass not toke-passto moony-toke-pass to BOBDN - repeat. Come on guys - share already

But yeah - you got us "evil" Republicans/Conservatives all figured out don't ya. Do you know what we do to people that figure us out?

CkG

 

[KMurphy]

Originally posted by: rchiu
How blind can people be? If there is a recovery and working people are not better off, where does the GDP/money generated by the recovery goes?

Doesn't take a genius to figure out that this economy recovery is concentrated on the top percents of income group because of the Tax cut policy and business friendly policies in the expense of rest of income groups.

I guess the gov isn't being too friendly on businesses because they are fleeing overseas en masse. We are regulating, litigating and pushing companies to more "friendly" environments like China, India, Mexico and Brazil that don't put quite so much emphasis on some rare mosquito larva preserve and worry instead about servicing the rest of the civilized world.

Add to that our higher wages and democrats trying to lobby more bureaucracy to permits for power and energy development it's no wonder we are in such a sad state. Bad business environment plus free trade zones equals business moving to good business environment. Bitching won't resolve the issue either. The gov can't make everyone happy all the time. There are those that complain about anything. What we truly need is a good war or massive natural disaster to take the populous' mind off the trivial b.s. they gripe about every day and focus on what is truly important such as the freedoms they take for granted every day and the love of those close by.

 

[BOBDN]

Originally posted by: CADkindaGUY

Originally posted by: BOBDN
National security doesn't require massive unemployment.

The Bush administration neo-con world domination agenda requires plenty of bodies for their war machine which can be supplied by making jobs scarce making enlistment the only alternative. No draft just the economic necessity of going to work for Uncle Sam.

Man, why do I keep getting skipped. It's - toke-toke-pass not toke-passto moony-toke-pass to BOBDN - repeat. Come on guys - share already

But yeah - you got us "evil" Republicans/Conservatives all figured out don't ya. Do you know what we do to people that figure us out?

CkG

Yeah I do know. I saw what you did to the Kennedys and Dr. King.

But outright murder was too much of a shock for the nation.

So now you just try to assassinate people politically as in President Clinton.

 

[CADsortaGUY]

Originally posted by: BOBDN

Originally posted by: CADkindaGUY

Originally posted by: BOBDN
National security doesn't require massive unemployment.

The Bush administration neo-con world domination agenda requires plenty of bodies for their war machine which can be supplied by making jobs scarce making enlistment the only alternative. No draft just the economic necessity of going to work for Uncle Sam.

Man, why do I keep getting skipped. It's - toke-toke-pass not toke-passto moony-toke-pass to BOBDN - repeat. Come on guys - share already

But yeah - you got us "evil" Republicans/Conservatives all figured out don't ya. Do you know what we do to people that figure us out?

CkG

Yeah I do know. I saw what you did to the Kennedys and Dr. King.

But outright murder was too much of a shock for the nation.

So now you just try to assassinate people politically as in President Clinton.

"...sleep with one eye open...." - "you're in too deep.."

CkG

 

[BOBDN]

Originally posted by: KMurphy

Originally posted by: rchiu
How blind can people be? If there is a recovery and working people are not better off, where does the GDP/money generated by the recovery goes?

Doesn't take a genius to figure out that this economy recovery is concentrated on the top percents of income group because of the Tax cut policy and business friendly policies in the expense of rest of income groups.

I guess the gov isn't being too friendly on businesses because they are fleeing overseas en masse. We are regulating, litigating and pushing companies to more "friendly" environments like China, India, Mexico and Brazil that don't put quite so much emphasis on some rare mosquito larva preserve and worry instead about servicing the rest of the civilized world.

Add to that our higher wages and democrats trying to lobby more bureaucracy to permits for power and energy development it's no wonder we are in such a sad state. Bad business environment plus free trade zones equals business moving to good business environment. Bitching won't resolve the issue either. The gov can't make everyone happy all the time. There are those that complain about anything. What we truly need is a good war or massive natural disaster to take the populous' mind off the trivial b.s. they gripe about every day and focus on what is truly important such as the freedoms they take for granted every day and the love of those close by.

Odd how those good business environments are so bad for the workers.

Maybe if we instituted some of those good business practices here, slave labor, slave wages, horrible living conditions, disease, short life span, we could help our nation's CEOs achieve their objectives without having to send our jobs overseas.

 

[BOBDN]

Man, they just showed a clip of Bush speaking in Missouri today about jobs. They say the speeches are aimed at reassuring Americans about jobs. I wonder why he'd have to do that?

I wish I had recorded the clip. Bush is standing at the podium with "Growth" and "Jobs" on his official Karl Rove propaganda backdrop -

While the audience sat there with there arms folded staring at Bush stone faced.

Where's the applause George? Didn't they know they were supposed to applaud?

I guess some of those folks are worried about their jobs.

 

[XZeroII]

There is usually a delay between different parts of economic recovery. Many corporations are probably waiting until their profits improve before they make any major hiring decisions.