MarketWatch: Why we’ll have 10% unemployment soon

[marmar]

from MarketWatch:



Why we’ll have 10% unemployment soon
Commentary: 3 key sectors show just how weak job market is

By Jeff Reeves


ROCKVILLE, Md. — After the nationwide unemployment rate peaked above 10% in late 2009, we saw a fairly rapid decline in jobless rolls during the next 12 months. By March of this year, the headline jobless number had crept back under 9% and renewed optimism in the economic recovery and equity markets.

Well, we’ve been reading a much different story in the last month or two, with disappointing job creation and a rise in the overall unemployment rate as the meager number of new positions can’t keep up with the sheer volume of folks looking for work.

To make matters worse, we are now seeing a disturbing new spate of layoff announcements — not just a dozen or so workers here and there, but pink slips issued by the thousands at some of the biggest blue chips on Wall Street. Read about 6,500 jobs cut at Cisco.

In short, there aren’t enough jobs to go around now and there will be even fewer jobs a few months down the road. All this points to significantly higher unemployment in the near future, possibly over the 10% mark. ...............(more)

The complete piece is at: http://www.marketwatch.com/story/why-well-have-10-unemployment-soon-2011-07-21?link=MW_story_popular

[FBaggins]

1. Really bad timing

This isn't going to clear up enough by next summer. We're in real trouble next Fall.

[cbdo2007]

10. The timing isn't an accident....it's an election trick.

It will set up a big debate during the election about how best to solve the problem. Obama will push for a stimulus, Repubes will push for lower taxes. Obama has the upper hand and will get reelected and push through another stimulus.

Or they may release the next stimulus next spring, which will give the economy a temporary boost to give President Obama the boost he'll need to win.

Either way, it works good for us....well, unless you're one of the unemployed, then you're just a pawn in their game.

[FBaggins]

12. Not a chance. Sorry.

There's no way that a sitting president would artificially make the employment situation look worse just so that he could claim that he's got the better plan for fixing it.

That would be a fine plan if he wasn't already President. Regardless of who (Bush) caused the downturn, everyone knows that we elected the President four years ago (at election time) because we assumed that he was the guy to fix the problem. If things still suck next Fall, it won't matter who was to blame originally.

Or they may release the next stimulus next spring,

And we've clearly seen that such stimulus takes many months to have an impact (if at all). People set their impression of the economy months before an election... so a Spring stimulus can't help us. A stimulus right NOW would barely have an impact (and that assumes that someone has an idea for a stimulus that would actually work... let along get enough votes to pass).

[xchrom]

2. Recommend

[rfranklin]

3. those Bush tax cuts are really working, aren't they?

The supply siders have more money in their accounts than ever. But still they are complaining about "uncertainty." What is certain is that they are not creating any jobs though they have reaped an unprecedented enrichment while impoverishing more and more Americans.

[lunatica]

4. And the uncertainty is growing daily

If they've felt trepidation up to now, they're going to feel certainty soon, which they'll use to justify their initial trepidation. Thus it's still not their fault.

[Name removed]

6. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Buns_of_Fire]

8. If they're still "uncertain," we obviously haven't given them enough money! Duh!

The American People, are, after all, a never-ending fount of riches for our Job-Creating Masters (bows head in reverence). Now, let's talk about eliminating that pesky capital-gains tax altogether...

[Romulox]

13. "Obama tax cuts". Circa 2010.

:hi:

[HockeyMom]

5. Public Sector employees getting laid off also

Maybe at Faux they think this is great, but these people don't just fade in the sunset. They add to the unemployment figures also.

[lunatica]

7. How optimistic of them to claim it's only 10%

Next Congress will vote down the unemployment payments as "government subsidizing the lazy" and no one will bother to count the unemployed who are good for nothing anyway.

[Chimichurri]

9. Weren't we told tax cuts creates jobs?

[WatsonT]

11. 10% unemployment would be something to celebrate

if we're talking real unemployment.

Right now that's around 25% or so.

[Romulox]

14. But recapitalizing Wall Street with taxpayer money was supposed to save our economy!

Small hitch in the plan?