US jobs data expected to underline fears for recovery

[Raggz]

Source: The Telegraph (UK)

Ahead of today’s all-important US employment report, which is expected to show a loss of 87,000 jobs last month, the US government reported that “initial jobless claims” rose by 19,000 to 479,000 last week. The figure was higher than Wall Street estimates, and drove the four-week moving average higher too.

Read more: http://www.telegraph.co.uk/finance/economics/7929472/US-jobs-data-expected-to-underline-fears-for-recovery.html

---

Jobs are important, corporate profits are up - but jobs are lagging.

Why?

[jtuck004]

1. A few things. First, profits can increase as you lay people off

and add work to those that are left. "Productivity" increases, at least for a time. If those workers you laid off were also your customers, this can be a problem over the long term.

Work can be outsourced. Same product, same distribution, lower costs of production = greater profits. Again, there could be a short-term problem.

Or it could be U.S. corps that are doing business overseas. Coke and UPS are good examples - their sales are down here, but up in developing countries. Turn on CNBC and you can hear ad after ad touting the benefits in investments outside of this country.

[Raggz]

2. All excellent points

[jtuck004]

4. And every single one is short-term thinking

We have to figure out a way to re-invest in our neighbors.

[maryf]

3. Think it is mostly outsourcing as corporations move in order

to keep the profit higher by paying lower wages for more work.

See here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8886324

and here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8888070

[Kumbricia]

5. Is it any wonder?

When the US Govt. is funding IT training programs for people in Armenia and Sri Lanka to benefit outsourcing companies, while de-funding training programs in the U.S.

<http://www.informationweek.com/news/software/integration/showArticle.jhtml?articleID=226500202>

[hayu_lol]

6. It simply amazes me that the so-called 'experts' in both our...

corporate and government infrastructures continue to believe in the fairy tale in the recovery of this dying economy of ours. Students who seek part-time jobs along with seniors(to help make ends meet)plus all the other unemployed folks(still close to half a million a month)know exactly what the economy is doing.

This is a full blown depression with the worst still out there ahead of us. The major financial organizations, helped along with their taxpayer bailouts are steaming ahead full-blast proudly flying the 'Jolly Rodger' as they continue to accept policies that are raping the workers of the entire country.

This appears to be a continuation of the blind eyes and deaf ears of our lords and ladies of the failure of their frequently-stated 'Recovery' that they see/hear about or just plain want to believe. The Emperor, it would seem, is wearing no clothes.

Again, this is a deep depression that is going nowhere in a hurry.

[maryf]

7. The Emperor, it would seem, is wearing no clothes.

and dressing his words in like manner...this is a deep depression without the wall street crash...

[Roland99]

8. I'll tell ya why... Companies are G R E E D Y and sitting on their PROFITS

Take the case of a phone call I got yesterday from a good friend (and a fellow DUer)

The company he works at has been getting busier. He went from reduced hours to now working lots of overtime. The company said they needed to hire more people in order to keep up with the new orders BUT they were cutting benefits (less vacation, lowered 401(k) matching) and I'd bet my bottom dollar those new hires won't be making the same money as those already on the job. AND...a somewhat subtle statement (threat?) was made to dissuade the forming of a union.



So, yeah, there were some new jobs created but others had to lose benefits in order for that to happen despite gangbuster sales/profits now.

[maryf]

9. kick nt.