Job numbers are staggeringly low
The economy lost a shocking 533,000 jobs in November. The number is almost twice what was originally projected. How long will this go on? Ashley Milne-Tyte tries to find a silver lining in the losses.
Job seekers attend a career day in East Rutherford, New Jersey. (Spencer Platt/Getty Images)
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TEXT OF STORY
Scott Jagow: I'm not trying to be all doomy and gloomy. It's just a fact: The unemployment numbers out this morning are shocking. The economy lost 533,000 jobs last month. That's almost twice as many as expected. It's the worst month since December 1974. The unemployment rate is now 6.7 percent, highest since '93. And GM piled on this morning, saying it'll lay off 2,000 more factory workers early next year. The question is, how long will this go on? Ashley Milne-Tyte.
Ashley Milne-Tyte: Companies are reacting much faster to the weakening economy than many expected.
Joel Naroff of Naroff Economic Advisors says the size of the losses is staggering. He says it suggests more large losses will occur during the next few months. Naroff says the only good thing is companies are probably getting the ugliness over with within a short timeframe.
Joel Naroff: That is businesses are all acting immediately. So we may have a few months of very large job losses, but then they may slow because businesses are reacting so quickly.
He says this news means more gloom for the retail industry, leading up to Christmas and beyond.
Naroff: The conservative nature of the consumer is only gonna be reinforced by this kind of jobs report.
Naroff says with this added pressure on the economy, he expects the Fed to cut interest rates again when they meet on December 16.
In New York, I'm Ashley Milne-Tyte for Marketplace.
Comments
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From portland, OR, 12/05/2008
Well, let me start off by saying I work in the support environment and I don't fell the pink-slip fear. I happen to be lucky enough that our sales team created a contract that will keep my job beyond next year. Wait a minuet! We thought this economy will be out of the recession by the end of the year so I better check my feelings later.
Here is my point of view on the economy and jobs. Did we completely forget that small business are the core of our employment in this country? Now I don't want to suggest that we shouldn't bail out GM with some cash for I fear what they will do with it. Yet I am a supporter of Alexander Hamilton principle's when it comes to leadership and the market.
So let's use the 'middle class' term again and translate it to businesses. Let's give a tax cut to medium size business (which are the core of our employment and innovation America was and needs to move on).
In case you are wondering, I do have a business [solvecore.com], but I am nowhere near 'medium size'.
From Afton, VA, 12/05/2008
Going to get worse?
TRY Depression like the 1930s!
Consumers are 70% of GDP.
Consumers borrowed to spend. 9 billion borrowed bucks spent at Starbucks last year.
Consumers have much less credit.
Consumers are loosing jobs.
Our govt. is pumping trillions into banks - who are not lending to consumers.
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