As we saw this morning, companies cut 298,000 jobs in August, according to ADP. The forecast was for 250,000 jobs lost. The report also revised last month's decline to 360,000.
Well, the Labor Department's report is due out in two days, and it may show a loss of 225,000 jobs, according to a Bloomberg News survey.
The continued bloodletting on the job front is causing increased hardships on millions of Americans who, in many cases, are losing their homes and medical coverage. The human tragedy caused by our financial meltdown cannot be measured in numbers. Obviously, we need an all out court press to remedy this growing problem.
By industry groups the numbers breakdown as follows:
- The construction industry lost 73,000 jobs.
- Financial firms lost 19,000 jobs.
- Big companies employing more that 499 persons lost 60,000 jobs.
- Medium-sized companies of 50 to 499 employees lost 116,000 jobs.
- Small companies lost 122,000 jobs.
Obviously these job losses will impact consumer spending, which accounts for 70% of the economy. We can look for sluggish sales in the coming months. Consumers who have jobs are cutting back on their spending and are paying down their credit card debt.
All in all, the job picture remains gloomy. Many persons have exhausted their unemployment benefits and are having to go on welfare in order to survive.
Do you believe that our economy will pick up steam in this third quarter?
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Add your comments