Dangerous cracks appearing in job market

"WASHINGTON - Dangerous cracks in the nation's job market are
deepening. Employers slashed jobs by the largest amount in five years
and hundreds of thousands of people dropped out of the labor force —
ominous signs that the country is falling toward a recession or has
already toppled into one.

For
the second straight month, nervous employers got rid of jobs
nationwide. In February, they sliced payrolls by 63,000, even deeper
than the 22,000 cut in January, the Labor Department reported Friday.

The grim snapshot of the country's employment climate underscored
the heavy toll the housing and credit debacles are taking on companies,
jobseekers and the economy as a whole.

"It sounds like the recession bell is ringing for the U.S. economy,
although it is still faint," said Stuart Hoffman, chief economist at PNC Financial Services Group."

 

http://news.yahoo.com/s/ap/20080308/ap_on_bi_go_ec_fi/economy;_ylt=A0WTc...

No votes yet

This is no surprise to me.

Ever since we instituted a minimum wage the national market has experienced a job loss after raising the minimum wage every time except for once. When the national minimum wage was raised I said then we'll lose jobs and raising it in a market that was balancing on the cliff of a recession it appears to have been the last act to finally push us over.

MikeyA

MikeyA

Actually, raising the minimum has little impact on job loss. This is being blamed on the housing market collapse, and worsening credit market.

We are simply not consuming enough?

 

The whole system is based on consumption.

 

I make this or that, and you go out and buy what I make, and then when I make it better and it lasts longer and you do not buy as many as they last longer, my sales go down and I produce less and then competition comes into play and I cannot compete and close down and lay people off.

 

How many cars or refrigerators or TV's can we consume, when they are built better and last longer.

 

The fed's are pumping more and more money into the system, many billions set to be released soon and yet people are not buying as much as they once did.

Regardless of the current state of the economy that is a very telling statistic Chris.

But it's much more telling when you weigh that against that most in favor of raising the minimum wage use healthcare as a reason. Again there is no spike in lower income families with healthcare when the wage is increased.

It's for that reason that I feel government should give the employers a choice. Either pay your workers more or give them benefits. Most small businesses do try to give their workers benefits when they can and those that do would be unaffected.

As for the impact of job loss you're wrong. Raising the minimum wage hurts one sector of the job market quite every time... small business owners. Raising the minimum wage helps corporations who can afford to raise their workers wage by either trimming jobs or by not giving a raise to employees who make over minimum wage.

MikeyA

MikeyA

As for the impact of job loss you're wrong. Raising the minimum wage hurts one sector of the job market quite every time... small business owners

I'm not sure where you're getting your facts, but there are several reports out that study the effects of raising the minimum wage and job loss. Here is one such report. And the effects are minor according to these reports. I can't find any economic analysis of the job market article that even mentions minimum wage raise as a factor.

" Total nonfarm payroll employment edged down (-63,000) in February, with pri-vate-sector employment declining by 101,000. Nonfarm payroll employment waslittle changed in December (41,000) and January (-22,000). Over the month, job losses occurred in manufacturing, construction, and retail trade. Health careand food services continued to add jobs. (See table B-1.)

Manufacturing employment continued to decline in February (-52,000), bringing losses over the past 12 months to 299,000. Most of the February decline was con-centrated in durable goods manufacturing, as motor vehicles and parts (-13,000),furniture and related products (-6,000), and wood products (-5,000) lost jobs. Within nondurable goods, employment fell in printing and related support activities (-5,000).

Employment in construction decreased by 39,000 in February, and has fallen by 331,000 since its most recent peak in September 2006. During this period,
residential specialty trades lost 209,000 jobs, while residential building lost
137,000 jobs.
In February, employment in retail trade declined by 34,000. Job losses occur-
red in department stores (-11,000), building material and garden supply stores
(-7,000), and automobile dealers (-6,000). Wholesale trade employment edged down
in February, with the durable goods component declining by 9,000.
Professional and business services employment was little changed for the second
month in a row; job gains had averaged 26,000 per month in 2007. In February, tem-
porary help services lost 28,000 jobs; employment in the industry has declined by
117,000 since the most recent peak in December 2006.
In financial activities, credit intermediation employment continued to decline
and has fallen by 116,000 since a peak in October 2006. In February, real estate
employment also continued to trend down; since June 2006, the industry has lost"
http://www.bls.gov/news.release/empsit.nr0.htm
34,000 jobs.

Looks more like the Grand Canyon to me.

Only really in Ohio and Michigan, the Grand Canyon that is.

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