The Jobs Problem You Don't Know About

[Purveyor]

The sharp jump in layoffs gets all the attention, but it's the lack of hiring and job openings that pose greater risks for the labor market and economy.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: February 5, 2009: 2:30 PM

NEW YORK (CNNMoney.com) -- January was one of the worst months for layoffs ever, with nearly a quarter million job cut announcements grabbing headlines.

But the real problem in the U.S. labor market today isn't layoffs. It's a hiring freeze that is gripping most work places -- and has not gotten nearly as much attention as the job cuts.

"The hiring rate has caved. That's why the job market is as bad as it is," said Mark Zandi, chief economist with Moody's Economy.com. "Given this low hiring rate, unemployment would still rise even if layoffs were falling."

The government's key employment report, due Friday morning, doesn't detail hiring and job openings. It instead gives overall change in the number of workers on U.S. payrolls.

It's expected to be another terrible number; economists surveyed by Briefing.com forecast a net loss of 540,000 in January, which follows the 524,000 loss in December. The unemployment rate is forecast to rise to 7.5% from 7.2%, which would be a 16-year high.

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CNN: http://money.cnn.com/2009/02/05/news/economy/jobs_outlook/index.htm

[Berry Cool]

1. Well, yeah, duh.

There are hiring freezes all over the place. That means that even if employers could USE more people, actually WANT to hire more people, they can't, because their employers are terrified of things growing worse. Also, some of those employers are planning layoffs, even those that could actually use more people. They're afraid they won't be able to go on paying the ones they have. When people leave, their positions aren't being filled, so their jobs aren't out there for people who need a job.