MONDAY Another SELL DOWN???
Saturday, 03 October 2009 13:07
WASHINGTON: U.S. employers unexpectedly cut more jobs in September than in August, underscoring the fragility of the economy's recovery from its worst recession in 70 years as businesses remain cautious about the future, according to Reuters.
The Labor Department said on Friday, Oct 2 non-farm payrolls dropped by 263,000, marking the 21st straight monthly decline and helping to lift the unemployment rate to a 26-year high of 9.8 percent from 9.7 percent in August.
While the contraction in employment was worse than the 180,000 drop economists surveyed by Reuters had predicted, many believed it did not signal the start of a reversal in the trend toward stabilization of the labor market.
Economists said September's reading was distorted by a 53,000 drop in government employment, likely reflecting cutbacks by state and local governments, many of which are facing deep budget problems caused by the recession.
"We are more inclined to view September as a temporary setback than as a signal that the decelerating trend in job losses has stalled out," said Stephen Stanley, chief economist at RBS in Greenwich, Connecticut.
U.S. stocks ended lower as investors viewed the jobs data as more evidence of a slower recovery from recession..
Despite the signs of economic weakness in the jobs report, U.S. Treasury debt prices fell, pulling up the yield on the 30-year bond from five-month lows as investors took profits before next week's $78 billion in debt auctions.
BAD NEWS FOR OBAMA?
The jobless numbers might be bad news for U.S. President Barack Obama's attempt to reform the U.S. healthcare system, as Congress will want to limit spending on a health sector overhaul if the economy is taking longer to recover.
While Obama's overall approval ratings have stabilized at 50 percent or above since August, deepening unemployment could drag them down, and polls continue to show significant opposition to his handling of healthcare.
The government has put in place a $787 billion stimulus package to help the economy and the administration has hinted a second package might not be needed for now.
"Today's job report is a sobering reminder that progress comes in fits and starts -- and that we're going to need to grind out this recovery step by step," Obama told reporters.
The government revised job losses for July and August to show 13,000 more jobs were lost than previously reported.
A turnaround in the jobs market is viewed as the missing link in recovery from the longest and deepest slump since the Great Depression of the 1930s. The economy is believed to have started growing in the third quarter.
Since the start of the recession, the number of unemployed people has soared 7.6 million to 15.1 million, the department said. While the pace of job losses has moderated from early this year, companies are still not hiring on a big scale. - Reuters
Saturday, 03 October 2009 13:07
WASHINGTON: U.S. employers unexpectedly cut more jobs in September than in August, underscoring the fragility of the economy's recovery from its worst recession in 70 years as businesses remain cautious about the future, according to Reuters.
The Labor Department said on Friday, Oct 2 non-farm payrolls dropped by 263,000, marking the 21st straight monthly decline and helping to lift the unemployment rate to a 26-year high of 9.8 percent from 9.7 percent in August.
While the contraction in employment was worse than the 180,000 drop economists surveyed by Reuters had predicted, many believed it did not signal the start of a reversal in the trend toward stabilization of the labor market.
Economists said September's reading was distorted by a 53,000 drop in government employment, likely reflecting cutbacks by state and local governments, many of which are facing deep budget problems caused by the recession.
"We are more inclined to view September as a temporary setback than as a signal that the decelerating trend in job losses has stalled out," said Stephen Stanley, chief economist at RBS in Greenwich, Connecticut.
U.S. stocks ended lower as investors viewed the jobs data as more evidence of a slower recovery from recession..
Despite the signs of economic weakness in the jobs report, U.S. Treasury debt prices fell, pulling up the yield on the 30-year bond from five-month lows as investors took profits before next week's $78 billion in debt auctions.
BAD NEWS FOR OBAMA?
The jobless numbers might be bad news for U.S. President Barack Obama's attempt to reform the U.S. healthcare system, as Congress will want to limit spending on a health sector overhaul if the economy is taking longer to recover.
While Obama's overall approval ratings have stabilized at 50 percent or above since August, deepening unemployment could drag them down, and polls continue to show significant opposition to his handling of healthcare.
The government has put in place a $787 billion stimulus package to help the economy and the administration has hinted a second package might not be needed for now.
"Today's job report is a sobering reminder that progress comes in fits and starts -- and that we're going to need to grind out this recovery step by step," Obama told reporters.
The government revised job losses for July and August to show 13,000 more jobs were lost than previously reported.
A turnaround in the jobs market is viewed as the missing link in recovery from the longest and deepest slump since the Great Depression of the 1930s. The economy is believed to have started growing in the third quarter.
Since the start of the recession, the number of unemployed people has soared 7.6 million to 15.1 million, the department said. While the pace of job losses has moderated from early this year, companies are still not hiring on a big scale. - Reuters