FYI..

In my opinion, until the job market turns our economy is not out of
the woods in respect with this severe recession.

TMT

Layoffs might ease, but firms in no mood to hire
By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics
Writer

WASHINGTON – Employers are letting up a bit on the mass layoffs they
resorted to earlier this year to cope with the recession, but the
unemployment rate is climbing because many businesses remain wary of
hiring given all the economic and financial uncertainties.

The Labor Department on Friday is slated to release a report expected
to show that a net total of 620,000 jobs were lost in April. If
analysts are correct, the figure — while still big — would be an
improvement from March's 663,000 job losses and mark the fewest
reductions since November.

The deepest job cuts of the recession, which started in December 2007
and is now the longest since World War II, came in January: 741,000
jobs vanished then, the most since the fall of 1949.

"I think the worst has passed in terms of losses," said John Silvia,
economist at Wachovia. "But the jobs situation will remain tough."

With few places for the out-of-work to land, the unemployment rate is
expected to jump to 8.9 percent, from 8.5 percent in March. If that
happens, it would mark the highest jobless rate since the fall of
1983, when the country was recovering from a severe recession that
drove unemployment past 10 percent.

As the recession eats into sales and profits, companies have turned to
layoffs and other cost-cutting measures to survive the storm. Those
including holding down workers' hours, and freezing or cutting pay.

Looking ahead, economists expect monthly job losses continuing for
most — if not all — of this year. However, they are hoping the
reductions won't be as deep.

Federal Reserve Chairman Ben Bernanke earlier this week gave his most
optimistic prediction yet about the end of the recession, saying he
expects the economy to start growing again this year — although the
comeback could be weak and more jobs will disappear even after a
recovery takes hold.

Companies will have little appetite to ramp up hiring until they feel
the economy is truly out of the woods and a recovery is firmly rooted.

Against that backdrop, many economists predict the unemployment rate
will hit 10 percent by the end of this year. Bernanke stopped short of
that figure, saying it will be somewhere in the 9 percent range.
Regardless, both private economists and Bernanke agree the
unemployment rate will keep climbing into next year.

The Fed says unemployment will remain elevated into 2011. Economists
say the job market may not get back to normal — meaning a 5 percent
unemployment rate — until 2013.

More than 5 million jobs have vanished in the recession, and Bernanke
predicted "further sizable job losses" in the coming months.

Fallout from housing, credit and financial crises — the worst since
the 1930s — has hurt America's workers and companies, and the pain
will continue. The jobs market traditionally doesn't rebound until
well after an economic recovery starts.

More companies recently announced job cuts. General Motors Corp. laid
out a restructuring plan that includes cutting 21,000 U.S. factory
jobs by next year. Microsoft Corp. said it was starting thousands of
the 5,000 job cuts it announced in earlier this year and left the door
open to even more layoffs.

However, glimmers of hope have emerged that the recession may be
losing its grip on the country.

The Labor Department on Thursday said the number of newly laid-off
workers filing applications for jobless benefits plunged to the lowest
level in 14 weeks, a possible sign that the massive wave of layoffs
has peaked. Still, the number of unemployed workers drawing benefits
climbed to a new record — 6.35 million.

Other reports showed sales at many retailers fared better in April,
with Wal-Mart Stores Inc. leading the way.

In the U.S., the economy shrank at faster than a 6 percent annual rate
late last year and early this year, the worst six-month performance
since the late 1950s. Analysts think it is still shrinking now — but
probably at about half that pace. Many predict the economy could start
growing in the third or fourth quarter as tax cuts and government
spending on big public works projects included in President Barack
Obama's $787 billion stimulus package make their way through the
economy.

Information for the monthly employment report is collected around the
middle of the month. A copy of the report is given to the White
House's Council of Economic Advisers on Thursday afternoon. Bernanke
gets employment information Thursday night.

"Too_Many_Tools" wrote in message
...
FYI..

In my opinion, until the job market turns our economy is not out of
the woods in respect with this severe recession.

TMT
******************************************

What incentive to the evil capitalists have to hire more people in this
country? Why should they not not just move more jobs overseas? The
concentrated Socialist effort to destroy Capitalism is not conducive to job
creation. Lets just print more money and give it away to make everybody
happy!

On May 8, 9:13*am, "Buerste" wrote:
"Too_Many_Tools" wrote in message

...
FYI..

In my opinion, until the job market turns our economy is not out of
the woods in respect with this severe recession.

TMT
******************************************

What incentive to the evil capitalists have to hire more people in this
country? *Why should they not not just move more jobs overseas? *The
concentrated Socialist effort to destroy Capitalism is not conducive to job
creation. *Lets just print more money and give it away to make everybody
happy!

The real growth sector for jobs is going to be...government! All you
need to do is make sure your politics is the right flavor and you're
in.

Stan

"Too_Many_Tools" wrote in message
...
FYI..

In my opinion, until the job market turns our economy is not out of
the woods in respect with this severe recession.

Did you come up with that profound thought all by yourself? You should be
serving on O'bingbong's economic advisory panel. Obviously he hasn't figured
that out yet.