Slowing economic rebound raises unemployment fears

Source: Economic Times of India

31 Jul 2010, 0216 hrs IST,AGENCIES

WASHINGTON: The US economic recovery is losing so much momentum that employers are unlikely to step up hiring anytime this year, and unemployment could return to double digits.

That was the bleak conclusion of analysts Friday after the government said economic growth crawled at a 2.4 per cent pace in the spring. It was the economy's weakest showing in nearly a year. And many economists think growth is even slower now.

Consumers spent less, companies slowed their restocking of shelves and the nation's trade deficit exerted a stronger drag on the economy in the April-to-June quarter.

The Commerce Department report also showed the recession was deeper than previously estimated, according to revisions of the data. Its depth helps explain why the economy is now struggling so much, with shoppers reluctant to spend and employers slow to hire.

``We're headed into the third quarter with little momentum, and most everything is tracking weaker,'' said Mark Zandi, chief economist at Moody's Analytics. ``Because of that, I expect unemployment to rise back to double digits, hitting 10 per cent in December and staying there early next year.''


Read more: http://economictimes.indiatimes.com/news/international-business/Slowing-economic-rebound-raises-unemployment-fears/articleshow/6239187.cms

Not the brightest bulbs in the pack.

Some friends of mine work for a major film studio. They've had their wages slashed about four times in the past decade, but that's still not enough to keep all of their jobs here; the studio outsources most of their positions to Canada now. Why? Health insurance costs. The employees get the same wages in Canada, but the cost of doing business there is at least 20% lower because of their National health care system.

Tells those depressing assholes that it's the http://www.telegraph.co.uk/news/worldnews/northamerica/usa/barackobama/7911108/Barack-Obama-on-summer-of-recovery-tour.html">Summer of Recovery.

Why, banker bonuses were a goddamned record this year! A new record! Ain't nobody gonna tell me that things suck.

Sheesh!

Based on the weekly initial jobless claim numbers I expect that July will show more private sector jobs added than what the experts think (around 175,000). That's not great. Far from it but it will show a continuation of the modest progress on the jobs front. More than anything it shows that the stimulus bill should have been larger.

..love to discourage us? Note who wrote the article.

Are you fucking brain damaged or something? Were you not told that people expect you to fix this shit. STOP ACTING LIKE A GOD DAMN, PUSSY !!

Businesses would rather not hire than deal with the paperwork and uncertainty.

We needed the Public Option and Single payer... instead we got 4000 pages of weasel-words and gobbledygook.