CentristNet Blog

Dedicated To Providing Objective Information and Centrist Analysis of the American Political System.
March 31, 2010

FLASH: 23,000 American Jobs Lost in March 2010 “Unexpectedly”; UPDATE: Geithner Yesterday: America on “Verge” of “Sustained Period of Job Creation”

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Unemployment continues to rise in America as 23,000 American private sector jobs were lost in March 2010

Despite oft-repeated claims by many economists in the establishment media that 50,000 private  jobs would be added this month, the American private sector lost 23,000 jobs in March 2010, again throwing cold water on the Obama Administration’s repeated claims that their policies are creating jobs.   Bloomberg has the story:

Companies in the U.S. unexpectedly cut payrolls in March, according to data from a private report based on payrolls.

The 23,000 decline was the smallest in two years and followed a revised 24,000 drop the prior month, data from ADP Employer Services showed today.

Apparently America’s companies, both big business and small business, simply do not believe that the Obama economic recovery is any more than “just words” and accordingly they are not hiring:

Companies are still hesitant to add workers until they see sustained sales gains and are convinced the economic recovery has taken hold. Economists surveyed by Bloomberg News anticipate the government’s report April 2 will show payrolls increased by 184,000, in part due to temporary hiring by the federal government to conduct the 2010 census and because of better weather compared with February.

“The economic recovery has not been long enough or strong enough along the way yet to produce the kind of rapid employment that people are hoping for,” Joel Prakken, chairman of Macroeconomic Advisers LLC in St. Louis, which produces the figures with ADP, said in a conference call with reporters after the report.

The ADP figures were forecast to show a gain of 40,000 jobs, according to the median estimate of 35 economists surveyed by Bloomberg. Projections ranged from a loss of 20,000 to a 100,000 gain.

Economists also predicted job creation in February 2010, and were wrong, but, amazingly, blamed the weather. The Obama Administration picked up on that weather excuse and has run with it for the entirety of March while claiming that March 2010 would see very substantial job creation. Now that ADP, the nation’s largest private payroll processor and premier private jobs data source, has “unexpectedly” shown yet more private job loss, it will be interesting to see what type of spin or excuse the Obama Administration creates to explain away the latest evidence of the failure of their economic policies.

Sadly, Americans can expect the Obama Administration to hail the coming Labor Department March 2010 jobs report as evidence of the success of their job creation policies, despite the fact that any gain there will be the result of the massive short-term (three month) hiring of census workers, not actual job creation:

Stock fell early Wednesday after a payroll company’s report provided a sobering reminder that the job market remains weak.

ADP said employers slashed 23,000 jobs in March. Economists surveyed by Thomson Reuters had forecast the report would show employers added 40,000 jobs during the month.

The ADP report is seen as an early indicator of the Labor Department’s employment report due out Friday. However, there can be wide variations because ADP only accounts for private-sector jobs.

Economists expect the Labor Department’s report to show employers added 190,000 jobs in March. It would be only the second monthly increase in jobs since the recession began in late 2007. The number could be somewhat inflated because the government hired temporary workers to conduct the 2010 census.

UPDATE: Ed at Hotair points to a WSJ story also using the well-worn “unexpectedly” framing for yet another piece of evidence that private sector job creation just is not occurring. Further, just yesterday Treasury Secretary Tim Geithner claimed “sustained job creation” is here as a result of Obama policies, which today’s report of private sector job loss in March 2010 unequivocally disproves:

During an interview yesterday with CNBC, U.S. Treasury Secretary Timothy F. Geithner said, “I think you can say generally that as the economy is getting stronger — and the economy is getting stronger. You know, we’re probably just on the verge now, of what we think to be a sustained period of job creation, finally.”

The Obama administration will keep up its efforts to “reinforce that recovery” and also preserve recent gains in financial stability, Geithner also said.

As it is almost certain the hundreds of thousands of three-month temporary Census worker jobs will result in an overall jobs report that shows job creation in March 2010 on Friday (the DOL release), it is clear from the ADP data today that sustainable, private sector job creation has not been spurred by 14 months of Obama economic policies, notwithstanding Obama Administration commentary from Geithner and others. Even CNBC, well-known Obama Administration cheerleaders, admits this:

ADP said employers slashed 23,000 jobs from payrolls in March, which came as a surprise to economists, who had expected to 50,000 jobs were added last month.

The ADP report is closely watched ahead of the government’s jobs report on Friday. Economists currently expect that report to show 200,000 jobs were added to nonfarm payrolls in March. And, that report could still show job growth, largely due to heavy hiring of government workers to conduct the Census.

The bottom line is that the establishment media will ignore the ADP private sector jobs report from today, and herald Friday’s DOL report as evidence that the Obama Administration jobs policies have succeeded, despite the clear evidence to contrary that only temporary Census workers will artificially push up the jobs numbers. The key question now is whether the American people, who feel the pain of continued private sector job loss every day, will buy what the Administration and establishment media are selling.

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March 26, 2010

Unmitigated Disaster: Unemployment Rises in 27 States in February 2010

Author: AHFF Geoff - Categories: Daily Content - Tags: , , , , , , , , , , , , , , , , , , , , , , ,

A Picture from the Winter of 1933 in NYC During the Great Depression

The unemployment crisis in the United States continued unabated in February 2010, as new statistics compiled by the Department of Labor show that unemployment rose in over half of the states in America last month:

March 26 (Bloomberg) — Unemployment increased in 27 U.S. states in February and dropped in seven, a sign the labor market needs to pick up across more regions to spur consumer spending and sustain the economic recovery.

Mississippi showed the biggest jump in joblessness with a 0.4 percentage point rise to 11.4 percent, according to figures issued today by the Labor Department in Washington. Nationally, unemployment held at 9.7 percent in February for a second month and employers cut fewer jobs than anticipated, figures from the Labor Department showed on March 5.

Today’s report indicates broad-based hiring is yet to develop following the loss of 8.4 million jobs since the recession began in December 2007. Florida, Nevada, Georgia, and North Carolina set record levels of joblessness last month.

“Until we see improvement in employment in a fair number of U.S. states, it’s not going to do a heck of a lot for the recovery,” said Jennifer Lee, senior economist at BMO Capital Markets in Toronto. “The worst seems to be over, but there’s a huge amount of work to be done to create jobs. It’s going to be a long, winding road.”

Payrolls dropped in 27 states, led by Virginia. The state’s loss of 32,600 jobs last month, the largest in records going back to 1983, was also the biggest decline among states. California, Michigan, Pennsylvania, Maryland and Texas also reported large decreases in employment, the report said.

These results, over a year into the Obama Administration’s reign and its vaunted Stimulus plan, provide yet another piece of evidence that the Obama economic program is failing to turn this country’s economy around.   After all, the Obama Administration did predict that the passage of its Stimulus legislation would result in a steady decline in unemployment from the Summer of 2009 onward – a prediction that is proven false by every unemployment release since then.  Indeed, the newly announced Obama initiative to order banks to reduce or waive monthly mortgage payments due from the unemployed will only exasperate the ongoing unemployment crisis, creating another incentive for the individual to become or remain unemployed so as to qualify for the new federal mortgage payment reduction/waiver program.

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