|
|
| World Home » Business » | Mon. Oct 13, 2008 |
 |
|
|
||||||
|
Job opportunities deteriorating in America MIL/NYT, Jul 2, 2008. Peter S.Goodman July 2, 2008 – IR Summary/NTY -Americans are in deep water due to weakening economy of the country, the job area of different trades and industries including automakers are adversely affected. Joblessness is accelerating throughout; the employers are making necessary changes to survive. The situation in different areas of jobs suggests that the labor market is deteriorating, and is likely to continue for an unknown period. An automaker has dropped their latest batch of awful sales numbers on the market on Tuesday. The trouble is intensifying in terms of losing jobs on a broad scale all over, whether it is real estate, builders or furniture manufacturers. Hundreds and thousands are losing job every day. Tighter lending standards imposed by banks in the wake of huge mortgage losses have made it hard for many Americans to secure credit — the lifeblood of expansion in recent years — crimping the appetite of consumers, whose spending amounts to 70 percent of the economy. Now, add to that unsavory mix the word from automakers that sales plunged in June — by 28 percent for Ford , 21 percent for Tyota and 18 percent for General Motors — a sharp sign that consumers are pulling back, making manufacturers more likely to cut production and impose more layoffs. Until recently, the weak labor market has been marked more by the reluctance of employers to create new jobs than by mass layoffs. Among economists, the sense is broadening that the troubles dogging the economy will be stubborn, leaving in place an uncomfortable combination of tight credit and scant job opportunities perhaps well into next year. “It’s a slow-motion recession,” said Ethan Harris, chief United States economist for Lehman Brothers. “In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we’re not getting the classic two or three negative quarters. Instead, we’re expecting two years of sub-par growth. Growth that’s not enough to generate jobs. It’s kind of a chronic rather than an acute pain.” Mr. Harris expects tepid economic growth and a shrinking labor market to persist through the fall of 2009. Goldman Sachs forecasts that the unemployment rate will peak at 6.4 percent late in 2009 before the picture improves, meaning that the painful process of shedding jobs may be only half-way complete. “The labor market is clearly deteriorating, and it’s highly likely to keep deteriorating,” said Andrew Tilton, an economist at Goldman Sachs. “It’s clear that the housing downturn and credit crunch are still very much under way. Clearly, there are more jobs to be lost in housing, finance and construction — hundreds of thousands of more jobs to be lost collectively.” On Thursday, the Labor Department will release its snapshot of the job market for June. Economists generally expect the report to show 60,000 more jobs lost, marking the sixth consecutive month of decline. But many anticipate the unemployment rate will nudge down a little bit, swinging back from an abrupt climb that could have been exaggerated by survey glitches in the previous month, when the rate jumped by half a percentage point — the sharpest one-month spike in 22 years. If the unemployment rate were to hold steady or rise, that would likely spook markets, underscoring the impact of the economic slowdown. “Slowing wage growth and falling employment is absolutely toxic if your business is selling anything to consumers,” said Ian Shepherdson, chief United States economist for High Frequency Economics.
| |
 |
|
Applelounge Network (Website Design India, Web Design India) Sites |