W.G. Hill Books, Underground Knowledge, Offshore Banking and Investing
Page: April Job Losses the Lowest

April Job Losses The Lowest

Census Hiring and Reporting Methods Minimize April Unemployment

Employers cut 539,000 jobs in April, the lowest total in six months, but the Labor Department said the unemployment rate still soared to 8.9%, from 8.5% in March. While some analysts viewed the latest report as a sign of a nascent economic recovery, the unemployment numbers are almost certain to head higher before the recession is declared over.

Last week’s report could have been worse if the numbers hadn’t been held in check by a burst of federal government hiring of temporary workers to prepare for the 2010 Census.

The report was also skewed by the way the government categorizes the unemployed. As Money Morning previously reported, if laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the numbers skyrocket.

April Unemployment Report

In fact, if the latest unemployment report had included those workers, the rate would have soared to 15.8% in April, the highest on records dating back to 1994. The total number of unemployed now stands at 13.7 million, up from 13.2 million in March.

The data released Friday wasn't as high as the 620,000 job cuts that economists were expecting, but the payroll figures for March and February were revised to show 66,000 more job losses than previously reported.

The report showed job losses across almost all sectors of the economy, but at a slower pace than previous months. The manufacturing sector lost 149,000 jobs in April, after cutting 167,000 the prior month. Construction industries cut 110,000 jobs after shedding 135,000 in March.

The service industry, responsible for roughly 90% of economic activity lost 269,000 jobs after eliminating 381,000 in March.

The one bright spot was government hiring, with public payrolls soaring by 72,000 after the U.S. Census Bureau began hiring 140,000 temporary workers last month to produce the population count that comes once every 10 years. It will hire more than 1.4 million people to conduct the survey over the next year.

Even though unemployment rolls are now at the highest level since September 1983, many analysts believe the numbers signaled the economy's steep decline may be easing.

We appear to have passed the point of the most severe job losses,” Dean Maki, co-head of U.S. economic research at Barclays Capital PLC (ADR NYSE: BCS) in New York told Bloomberg News. “It’s still a weakening labor market but it’s weakening less fast. There are a few headwinds to growth, and a recovery will” likely be “modest.”

The worst financial crisis since the 1930’s has taken a steep toll on U.S. workers and companies, and most economists expect the unemployment numbers will get worse as the housing, credit and financial sectors sort out the mess. The jobs numbers usually don’t rebound until well after an economic recovery begins.

Government “stress tests” to determine whether 19 of the largest U.S. banks had enough capital to weather further economic turmoil used an “adverse scenario” that included an average unemployment rate of 8.9% in 2009 and 10.3% next year. But economists projected in an April survey that the jobless rate would rise to 9.5% by year-end, Bloomberg reported.

In the coming months, economists expect job losses to continue for most — if not all — of this year. But some are hopeful the cuts won't be as deep.

"There are glimmers of hope. We are moving in the right direction in terms of layoffs. They are measurably less bad than what we've been through," Mark Zandi, chief economist at Moody's Economy.com, told theAssociated Press.

The biggest impact of job losses on the economy is the threat to consumer spending, the engine that drives 70% of Gross Domestic Product (GDP). After a first-quarter rebound, Americans could retrench again this quarter before spending shows sustained gains in the second half of 2009, according to economists surveyed by Bloomberg last month.

Joel Naroff of Holland, Pennsylvania-based Naroff Economic Advisors, thinks the numbers will be good for consumer confidence, which should help spending. In a note to investors, Naroff said the unemployment numbers are the latest in a long string of good news/bad news economic reports.

“This is a truly awful report that will likely be taken as a good report because the job losses have slowed,”he said. “As long as we continue to see the silver lining in the black clouds that overhang the data, then confidence will build. It does look as if we are falling more slowly and we are likely to hit bottom reasonably soon, at least as far as economic growth,”

The job cuts continued this week as steelmaker Severstal International (MCX: CHMF) said it's shutting plants in Wheeling, W.Va., and Warren, Ohio, forcing 3,100 layoffs due to the pullback in the steel industry.

E.I. duPont Nemours & Co. (NYSE: DD), the third-biggest U.S. chemical maker, plans to eliminate an additional 2,000 positions, while Microsoft Corp. (NASDAQ: MSFT) started laying off some of the 5,000 job cuts it announced earlier this year and left the door open for more in the future.

“We will continue to closely monitor the impact of the economic downturn,” Microsoft Chief Executive Officer Steve Ballmer said in a e-mail obtained by Bloomberg News. Redmond, Washington-based Microsoft will, “if necessary, take further actions on our cost structure including additional job eliminations.”

   Bye Bye Big Brother Black Book
   Bye Bye Big Brother CD ROM
   Bye Bye Big Brother Package
   Citizenship Residency Requirements
   Confidential Communication for PTs
   Paper PT An Important Concept
   What Is PT All About
   The American Expatriation Guide
   Become an Honorary Diplomat
   Brazil and Paraguay Confidential
   Campione Confidential
   ESCAPE by Grandpa
   Instant Legal Residence Abroad
   The Invisible Investor
   Latvia Confidential
   The Monaco Report
   Panama Confidential
   Perpetual Traveler
   PT4 Grandpas Special Collection
   Portable Trades and Occupations
   The Second Passport Report
   Think Like a Tycoon
   WG Hill PT Collection
Bye Bye Big Brother
BBBB Free Chapter
   Basics of Investing Your Money
   Collectibles Worth Investing In
   Cryptocurrency Business Ideas
   Guide to Investing in Debt Funds
   Investing in Penny Stocks
   Investment in UK After Brexit
   Investment Options for Beginners
   Investment Trends to Watch
   Investor Protection for Expats
   Low Risk High Return Investments
   Non-Dom Reforms for British Expats
   Overseas Family Led Investments
   Price of Crude Oil and Stock Market
   Protecting Investments in Bankruptcy
   All About Commercial Lending
   Bankruptcy As A Solution
   Banks Don't Need Your Money
   Basics of Business Branding
   Blockchain Impact on Business
   Business Cloud Software
   Business Financing Sources
   Divorce and Finances Abroad
   Fund Your Small Business
   Hire Business Plan Consultant
   Learn About Finance Online
   Manage Business While Travelling
   Solve Cash Flow Problems
   Forex Trading Courses
   Automated Trading System
   Use Basic Tools for Trading
   Best Forex Books for Beginners
   Binary Options Straddle Trades
   Binary Options Strategies
   Blade Runner Trading Strategy
   The Camarilla Equation Formula
   Day Trading vs Swing Trading
   Elders Force Index Strategy
   Top Forex Trading Platforms
   The Gartley Pattern Chart
   Finding Good Forex Broker
   Forex Fundamental News
   Forex Market in Currencies
   Forex Markets Trading
   Forex Trading Account
   Forex Trading Beginner Tips
   Forex Trading Explained
   Forex Trading Worldwide
   International Currency Trading
   Most Profitable Forex Indicator
   Picking Right Forex Software
   Retracement Levels in Flats
   The 38.2 Retracement Level
   Stochastic Oscillator in Forex
   STP ECN Trading Model
   Support and Resistance Forex
   Safe Haven Currencies
   Successful Trader Traits
   5 Benefits of Antigua Passport
   Costa Rica Offshore Corporation
   Dubai Offshore Banking
   Offshore Outsourcing Tips
   Stress Factors of Expatriates
   The 10 New Bali Project
   Hottest Real Estate Markets
   Real Estate Investment Online
   Return on Property Investment
   Smart Real Estate Investments
   Technology and Real Estate
   Ways to Invest in Real Estate
   Business of Investing in Wines
   Fine Wine as Loan Collateral
   Investing in Wine in Australia
   Start Wine Trading Business
   BBBB Abridged Book
   The Gold Report
   Offshore Banking Guide
   Offshore Road to Riches
   PT2 The Practice
   VIP Divorce Kit
   The Invisible World
   Invisible Banking
   High Yield Investments
   High Yield Investments 2
   Future Wealth
   Financial Crisis
   The Offshore Investment Guide
   Underground Knowledge 1
   Underground Knowledge 2
   Underground Knowledge 3
   Underground Knowledge 4
   Scams and Fraud
   Alan Greenspan's Housing Bubble
   America's Oversized Deficits
   April Job Losses the Lowest
   Bank of America Bonus Payments
   Bank Stress Test Results
   Banks Stress Tests Flawed
   Bank Stress Tests Questions
   Banks Financial Trickery
   Canadian Oil Companies
   Card Issuers Meet Obama
   China Detroit's Lifeline
   China Taiwan Investment Accords
   China's Yuan Carry Trade
   Ciena Corp Recommendation
   Credit Default Swaps
   Elliott Wave Disciple
   General Motors Savior
   How to Buy Banks
   India's Slow Growth
   Japan's Lost Decade
   Long-Short Investing Strategies
   Money Morning Bank Stress Test
   Oil Prices Could Jump
   Russia and China Energy Deals
   Russian Economic Model
   Small Caps Proven Profitability
   Solar Energy Comeback
   Sustained Economic Recovery
   World's Reserve Currency
   Online Transactions Survey Findings
   Millionaire Mindset Charateristics
   Real Estate Investing in Panama
   Strategies for Achieving Success
   New Orleans 2015
   Casey Summit 2015
   Antigua Conference
   Recipes for Success
   Cancun Seminar
   Panama Seminar