How can you make this disaster look good?
By Daniel at 7 May, 2009, 5:15 pm
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U.S. JOB LOSSES
In the second quarter of 2008, GDP grew 2.8%. Despite this growth, job losses continued each month, and a self sustaining economic expansion failed to take hold.
In the first three months of 2009, more than 2 million jobs were lost, causing the unemployment rate to jump from 7.6% to 8.5%, the highest since November 1983.
The unemployment rate increased in March in 46 states, with California, the world’s eighth largest economy, hitting 11.2%, the highest since January 1941.
Underemployment, which combines the unemployed, with involuntary part time workers and discouraged workers, reached 15.6%.
Wages and salaries shrank at a 4% annual rate in the first quarter, and according to Deutsche Bank, payroll-tax withholding receipts collected by the Treasury Department are down 8.2% from a year ago. This suggests that personal income growth will remain weak in coming months, and shave more than $250 billion from total income and future demand.
Changes in temporary jobs lead reversals in the overall labor market by 6 to 10 months. In March, employers cut 71,700 temporary workers, so any real improvement in job growth is many months away.
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