Friday, September 2, 2011

Not Seen Since 1945, Zero Jobs Were Added in July



Obama accomplished something that has not been done since 1945. Employers did not add any jobs in a given month. Unemployment still holds at 9.1%. The liberal policies of spending out of a recession is destroying the very fabric in America. High unemployment will cause less tax revenues. Besides, Americans hate uncertainty. In fact, it is causing a horrid, domino effect, which leads to a unending, vicious cycle. We are seeing Democrats abandoning Obama. Obama blaming Congress. Washington is out of control. While the American people suffer, the Washington elitist are trying to get re-elected.

(Yahoo) WASHINGTON (AP) -- Employers added no jobs in August -- an alarming setback for the economy that renewed fears of another recession and raised pressure on Washington to end the hiring standstill.

Worries flared Friday after the release of the worst jobs report since September 2010. Total payrolls were unchanged, the first time since 1945 that the government reported a net job change of zero. The unemployment rate stayed at 9.1 percent.

The dismal news two day before Labor Day sent stocks plunging. The Dow Jones industrial average fell 253 points, or more than 2 percent.

Analysts say the economy cannot continue to expand unless hiring picks up. In the first six months of 2011, growth was measured at an annual rate of 0.7 percent.

Companies are mostly keeping their payrolls intact. They're not laying off many workers. But they're not hiring, either. Without more jobs to fuel consumer spending, economists say another recession would be inevitable. Consumer spending accounts for about 70 percent of economic growth.

When growth is slow and unemployment high, companies feel little pressure to increase pay and benefits. In August, for instance, hourly wages fell.

And when unemployment is chronically high, even many people who have jobs worry about losing them. So they're less likely to spend.

Eventually, as consumers cut back, corporate sales decline. Companies scale back hiring even more. Weak spending and hiring can feed on each other and edge the economy closer to recession.

When the economy is barely growing, it's also vulnerable to shocks like natural disasters and political upheavals. An economy growing 5 percent a year can absorb more punishment than one growing at 1 percent before it would slip into recession.

When growth is slow and unemployment high, companies feel little pressure to increase pay and benefits. In August, for instance, hourly wages fell.

And when unemployment is chronically high, even many people who have jobs worry about losing them. So they're less likely to spend.

The economy needs to add at least 250,000 jobs a month to rapidly bring down the unemployment rate. The rate has been above 9 percent in all but two months since May 2009.

Roughly 14 million Americans are unemployed. An additional 11.4 million are either working part time but want full-time jobs or have given up looking for work and aren't counted as unemployed.

The Obama administration has estimated that unemployment will average about 9 percent next year, when Obama will seek re-election. The rate was 7.8 percent when he took office.