The recession continues

[Richard Hakluyt]

Bad unemployment data from the US :

http://www.ft.com/cms/s/0/6ac5f4e0-66fe-11de-925f-00144feabdc0.html

"Optimism fades after US jobs report

By Krishna Guha and Sarah O'Connor in Washington Alan Rappeport and Michael Mackenzie in New York

Published: July 2 2009 13:47 | Last updated: July 2 2009 19:29

Markets fell sharply on Thursday after a 467,000 drop in US employment for June dashed hopes that the recession in the world's biggest economy is all but over.

Unemployment rose from 9.4 per cent to 9.5 per cent, suggesting the US is in the early phase of stabilisation. The US economy could continue to decline for months, albeit at a less precipitous rate than at the turn of the year, it shows.

The report – which came as investors were growing sceptical about the so-called "green shoots" of recovery – sent US and European shares and commodity prices tumbling.

The S&P 500 index was trading 2.2 per cent lower at midday in New York, while the FTSE Eurofirst 300 and FTSE 100 both closed down 2.5 per cent.

The yield on short-term government bills fell, indicating that the market sees less likelihood of early rate increases.

US employment

June's worse-than-expected report followed a lower rate of job losses in May, which had raised optimism that the recession was ending and the economy might rebound faster.

"If you were banking on the US driving a vigorous recovery, think again," said Alan Ruskin, a strategist at RBS Greenwich Capital. "The employment report can largely be taken at face value . . . a labour market that is not improving nearly as rapidly as May data suggested."

Republicans seized on the data to challenge the Obama administration's claim that its fiscal stimulus was working. Hilda Solis, labour secretary, told the FT the stimulus was saving jobs. But she added: "We are disappointed. The President and I remain deeply concerned about unemployment."

Since the recession began in December 2007, 6.5m jobs have been lost and the unemployment rate has climbed 4.6 percentage points. Although the US has shed jobs in each of the last 18 months, the June losses mark an improvement from the first three months of the year.

But losses were widespread across industries, with only education and health adding jobs in June. The automobile and parts sector shed 27,000 jobs.

Earnings also stagnated last month, while the average work-week slipped to 33 hours, its lowest since 1964."

Not good  .........as Tim might say 

I'm rather disappointed myself. Looks to me like the recession is going to be the worst since WW2 and that, even once it is over, we will spend at least a decade sorting state finances out.

[crazy canuck]

Things are getting worse at a slower rate which provides some hope.  But as far as Canada is concerned, we really need the US economy to start growing again.

[Phillip V]

Let's see how things are around Christmas.

[Phillip V]

People still give me shit for hitching my fortunes to the military-industrial complex. Meanwhile, Congress is going to authorize another 30,000 Soldiers to be added to the force's end strength.

[Martinus]

People still give me shit for hitching my fortunes to the military-industrial complex. Meanwhile, Congress is going to authorize another 30,000 Soldiers to be added to the force's end strength.

You sound like my friend with a job in public administration. Yay for freeloaders in useless jobs funded by taxpayers!

[Admiral Yi]

You sound like my friend with a job in public administration. Yay for freeloaders in useless jobs funded by taxpayers!

Didn't you used to work for the EU?

[Iormlund]

People still give me shit for hitching my fortunes to the military-industrial complex. Meanwhile, Congress is going to authorize another 30,000 Soldiers to be added to the force's end strength.

You sound like my friend with a job in public administration. Yay for freeloaders in useless jobs funded by taxpayers!

Wise man, your friend. I'm studying (and lobbying) for a job in public admin (well, maintenance).

[jimmy olsen]

People still give me shit for hitching my fortunes to the military-industrial complex. Meanwhile, Congress is going to authorize another 30,000 Soldiers to be added to the force's end strength.

Link?

[Sheilbh]

Wise man, your friend. I'm studying (and lobbying) for a job in public admin (well, maintenance).

I'd love a public sector job for the next year or so.  London supplement HO!

[Ed Anger]

Government pensions.

[Barrister]

Government pensions.

[Ed Anger]

Government pensions.

I'd love to suckle off the government teat.

[Martinus]

You sound like my friend with a job in public administration. Yay for freeloaders in useless jobs funded by taxpayers!

Didn't you used to work for the EU?

Uhm, no. 

[Phillip V]

Link?

My main source is from subscription-only Army Times (new articles free after a week-old), but here be a quick mention: http://www.kolnkgin.com/political/headlines/49303097.html

The increase is "temporary", but we'll see about that.

The bill also authorizes the Secretary of Defense to increase the Army's active-duty end strength by 30,000 above 2010 levels during fiscal years 2011 and 2012 if sufficient funding is requested in the budgets for those fiscal years.

[Phillip V]

Government pensions.

Military pensions continue to look amazing. We will also soon get Roth, but no employer-matching contributions yet.