Payrolls Probably Fell for Fifth Month; Economy Stagnating

[marmar]

Stagnating is Greek for "Collapsing". :think:



from Bloomberg:


Payrolls Probably Fell for Fifth Month: U.S. Economy Preview

By Shobhana Chandra

June 1 (Bloomberg) -- The U.S. lost jobs for a fifth month in May and manufacturing contracted, signaling the economy is stagnating, economists said before reports this week.

Payrolls probably dropped by 60,000 workers, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's June 6 report. Figures tomorrow may show the Institute for Supply Management's factory index fell to 48.5 in May.

Credit restrictions triggered by foreclosures, along with soaring food and fuel prices, have caused spending to slow, prompting banks, construction companies and manufacturers to fire workers. Rising joblessness heightens the risk that consumers will keep retrenching, further hurting growth.

``The job market is really emphasizing how bad things are in the economy,'' said Lindsey Piegza, an economic analyst at FTN Financial in New York. ``Payroll declines will further weaken consumer spending.''

The projected decrease in May payrolls would follow a decline of 20,000 in April that brought the total number of jobs lost so far this year to 260,000. The jobless rate likely rose to 5.1 percent from 5 percent, according to the survey median.

Factory payrolls probably shrank by 40,000 workers, reflecting automakers' efforts to trim costs, according to the survey median.

General Motors Corp., the biggest U.S. automaker, said last week that 26 percent of its union workforce accepted the latest offer to leave the company and help clear out its highest-paid factory workers. About 19,000 of GM's United Auto Workers members signed up for the buyout packages, and most will stop working by July 1, the company said. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aUYG2fgTYF8s&refer=home

[OhioChick]

1. Collapsing is right....

K&R

[SpiralHawk]

2. "Nothing to fret about, I'm in charge. I'm the Decider. Smirk" - Commander AWOL (R)

[FreakinDJ]

3. Wake Up and smell the Foreclosures - Were in a DEPRESSION

Damm idiots won't admit it until China claims California for the debt that is owed on the Iraq War

[Mojambo]

4. My hours have been cut by nearly 25% so far.

I'm still scraping by, but if I had a family or a life or something I'd be very desperate right about now.

[Snarkoleptic]

5. bushco continues cooking the books to avoid admitting we're in a recession.

The fact that we're in an election year most certainly plays a role in their manipulation of the numbers.
Here in the formerly "recession-proof" midwest, the signs are everywhere.
Homes are on the market for 12+ months.
Small businesses are going under.
National chain restaurants and stores are closing stores (Wickes Furniture, TGI Friday's, Bakers Square, etc).
We are long overdue for some honesty and transparency in Washington.

[aint_no_life_nowhere]

6. How are salaries doing for those who still have their jobs?

Are salaries increasing with the recent rises in fuel, electricity, food, and the like?

[MikeNearMcChord]

8. Salries??? Increasing????

Surely you jest.

[Madrone]

9. My salary has doubled in the last 8 years.

I'm still underpaid vs. what others make in the industry but I live in a small town with big-town cost of living. Oil is the primary heat source for my area, and that's quadrupled in the same 8 years. I'm lucky in that my landlord has not (yet) raised my rent and told me he never would - but I'm not holding my breath. Pretty much I think that while my salary has doubled, my lifestyle has remained at the very least, unchanged.

[Rosemary2205]

10. In raw dollars I make half of 1999

this does not take into account loss of spending ability due to inflation.

[high density]

7. I thought we were having a manufacturing boom thanks to the cheap dollar?

:eyes: :crazy: