Unemployment-Hits-Five-Year-High

[Girl In the OC_IHB]

Unemployment-Hits-Five-Year-High

WASHINGTON (AP)-- The nation's unemployment rate bolted above the psychologically important 6 percent level last month for the first time in five years — and it's likely to go even higher in the months ahead, possibly throwing the economy into a tailspin as Americans pick a new president.

A blizzard of pink slips propelled the jobless rate from 5.7 percent in July to 6.1 percent in August, the Labor Department reported Friday. Such a sharp increase is usually a strong recession warning, and it dashed investors' hopes for a late-year recovery.

Worried about the economy and their own business prospects, employers cut payrolls by 84,000 in August, marking the eighth straight month of losses.

So far this year, a staggering 605,000 jobs have vanished — slightly less than the population of Alaska. The economy needs to generate more than 100,000 new jobs a month for employment to remain stable.

 

[Girl In the OC_IHB]

Wages went up modestly last month, but prices have been rising faster. Average hourly earning rose to $18.14, up 3.6 percent from last year. High food and fuel costs mean paychecks aren't stretching as far, though.

A separate report showed a record 9.2 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, according to the Mortgage Bankers Association.

The Fed, which is struggling to curb inflation and improve growth, is expected to leave a key interest rate alone at 2 percent when it meets Sept. 16.

At its last two meetings, the Fed didn't change the rate. Before that, though, it had aggressively cut rates to shore up the economy. Many thought the Fed might start to raise rates next year to fend off inflation. But now with employment deteriorating, some wonder whether the Fed might be forced to lower rates again.

 

[Priced_Out_IT_Guy_IHB]

Looks like the rebate checks mailed out this summer are really helping to stimulate the economy and create jobs.

Oh well, at least we're not in a recession, right?

http://www.bls.gov/news.release/empsit.nr0.htm

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment continued to trend down (-84,000) in August.

Thus far in 2008, payroll employment has declined by 605,000, an average loss

of 76,000 per month. Employment continued to decline in manufacturing and employ-

ment services, while health care and mining added jobs. (See table B-1.)

Manufacturing employment fell by 61,000 in August. The largest decline

occurred in motor vehicles and parts (-39,000), which has lost 128,000 jobs

over the past 12 months. In August, employment also fell in 2 industries

related to home building--wood products (-7,000) and furniture and related

products (-7,000). Computer and electronic products manufacturing added

5,000 jobs over the month.

Within professional and business services, employment services lost 53,000

jobs in August; more than two-thirds of the decrease (-37,000) occurred in

temporary help services. Since its most recent peak in August 2006, employ-

ment services has lost 419,000 jobs.

Employment in both wholesale and retail trade continued to trend down over

the month. Within retail trade, motor vehicle and parts dealers shed 14,000

jobs. Since reaching a recent peak in April 2007, employment in motor vehicle

and parts dealers has fallen by 60,000.

Health care employment continued to grow in August (27,000), with more than

half of the gain in hospitals. Over the past 12 months, health care has added

367,000 jobs.

Employment in mining increased by 12,000 in August, with gains occurring in

all the component industries. Over the past 12 months, job growth has been

especially strong in support activities for mining (39,000) and in oil and

gas extraction (17,000).

Construction job losses in July and August averaged 14,000, compared with

an average monthly loss of 45,000 during the first half of 2008. In August,

residential specialty trade contractors lost 14,000 jobs; since a peak in

February 2006, employment in the industry has declined by 388,000.

 

[ipoplaya_IHB]

Got some anecdotal evidence on the OC unemployment front today...

The receptionist in the office next to ours, occupied by an engineering consulting firm with nine offices located mainly in the West and Pacific Northwest, came by this morning to see if we needed a receptionist. Evidently she had just been laid off along with four others. They've cut staff here by around 20% and have done so in a number of their offices according to her.

We've laid off a couple of people recently with plans to likely do a few more soon.

 

[halfnote19_IHB]

2 out of the 15 people in my office got the pink slip yesterday...

It was said to be a proactive step.

 

[WestparkRenter_IHB]

Check out the for lease sign for office building recenlty popped up in Irvine. They were signs of recession in the late 1980s.

 

[ipoplaya_IHB]

Check out the for lease sign for office building recenlty popped up in Irvine. They were signs of recession in the late 1980s.

Vacancy rates in commercial RE are big and getting bigger. In the corporate park where my office is, they are around 25-30% unoccupied... Had a number of small mortgage and RE-related companies here that went bye-bye last year.

 

[halfnote19_IHB]

Calif. unemployment hits 10.1% in Jan.

California now far exceeds unemployment nationwide, which rose to 7.6% in January.