533,000 jobs were cut, which was far worse than the 335,000 expectation. This is the worst number in 34 years. 1.91 million jobs have been lost this year. You should've heard the collective "OOHHHH!!" on the Chicago Mercantile Exchange (CME) trading floor when this headline came out.
The unemployment rate rose to 6.7%, but was lower than the 6.8% expectation.
How could job cuts be worse-than-expected, while unemployment was better-than-expected?
Defining Unemployment
You're unemployed only if you're looking for work, but you can't find it. This has to be documented. So if you've been laid off, but you haven't told anyone that you're looking for work, then you're not considered unemployed.
Analysis of Unemployment
Some people have been laid off for a while. Most of you know how difficult it is to find a job in this economy. It's possible that some people have just given up looking for a job. Maybe they're planning on going back to school. Or maybe they're becoming heroine dealers. Or maybe they just don't want to collect unemployment. I know plenty of fresh graduates who've recently been laid off who also live at home. There are probably at least some bright, Ivy League grads without jobs who have too much pride (and probably money) to file for unemployment.
It's Getting Worse
In the first week of December, companies have announced another slew of job cuts. AT&T is cutting 12,000 jobs. Dupont is sending 6,500 to the unemployment line. 600 miners will lose their jobs at Freeport Mcmoran. Viacom's 850 job cuts will be focused on MTV. Also in media, GE told subsidiary NBC Universal to layoff 500. Avis Budget, the car-rental company, is laying off 2,200. And let's not forget about the financial sector. JPMorgan Chase is cutting 9,200, Credit Suisse is cutting 5,300, and State Street is cutting 1,800. It's gonna get worse. And who knows how many jobs are being cut by privately held companies?
The economy is in bad shape and it's gonna get worse.
Posts
No comments:
Post a Comment