The Economy Is Improving Except For Higher Unemployment And Slumping Retail Sales
The Labor Department is expected to report Friday that the jobless rate increased to 9.5 percent in August, from 9.4 percent in July, as employers cut 225,000 jobs.
the manufacturing sector grew in August for the first time in 19 months, while home sales have increased for several months.
But the economy isn’t expected to grow strongly enough this year to persuade companies to ramp up hiring. Most economists expect the unemployment rate to top 10 percent by early next year.
Shouldn’t jobs be the number one priority? An upswing in manufacturing is great, but let’s not forget about cash for clunkers. Unless we see auto sales continue to improve, expect manufacturing numbers to fall again.
A loss of 225,000 jobs would be the smallest monthly decline since last year, a sign that layoffs are easing. Employers cut 247,000 jobs in July, compared with an average of 691,000 per month in the first quarter.
Still, the job cuts are holding down wages and salaries, while credit remains tight and home prices and stock portfolios have fallen. All those trends are restraining consumer spending, which makes up 70 percent of the U.S. economy, and could weaken the recovery.
Bottom line is: These numbers will be revised and they won’t be pretty. Until then, Payrolls: Pleasant Surprise or Disappointment?
My Way News – Improving economy not likely to lower jobless rate.
September 4, 2009 - 07:55 AM on September 4th, 2009
[...] forget about cash for clunkers. Unless we see auto sales continue to improve, expecRead more at http://rightvoices.com/2009/09/04/the-economy-is-improving-except-for-higher-unemployment-and-slumpi... Tags: 9.7, jobs report, Percent, unemployment « The Silent Destruction Of [...]