Friday, August 7, 2009

Unemployment drops, Good news for Obama Administration

Again, one thing the average person understands is the unemployment rate and the "NO JOBS". Well, the unemployment rate dipped to 9.4%, many expected it to go up and hit around 9.7%. These numbers, if they continue, is a much needed breath that the Obama Administration needs.

Employers throttled back on layoffs in July, cutting just 247,000 jobs, the fewest in a year, and the unemployment ratedipped to 9.4 percent. It was a better than expected showing that offered a strong signal that the recession is finally ending.

The Labor Department's report was better than many analysts were expecting. They were forecasting job losses to slow to around 320,000 and the unemployment rate to tick up to 9.6 percent, from 9.5 percent in June.

If laid-off workers who have given up looking for new jobs or have settled for part-time work are included the unemployment rate would have been 16.3 percent.

The government reported last week that the economy shrank at a pace of just 1 percent from April-to-June, the strongest signal yet that the recession may be ending.

Many analysts predict the economy could start growing again in the current July-to-September quarter. And, the Fed recently observed that the economy is finally showing signs of stabilizing in some regions of the country — especially in parts of the Northeast and Midwest — bolstering hopes of a broader-based recovery this year.

The good news, bad news picture in the labor market suggests that employers are feeling more comfortable about slowing down firings but still aren't ready to ramp up hirings.

Companies won't kick up hiring until they are confident a recovery will have staying power. And, the anticipated recovery is expected to be slow. Exactly how it unfolds will hinge partly on the behavior of consumers, whose spending accounts for the single-largest slice of economic activity. read more here....

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