Tag Archives: Economy of the United States

OCTOBER SURPRISE

Was3760189BY: Adam Gavriel

A report released today by Bloomberg.com shows that companies added fewer workers than projected in October. Predictions were paramount that the government shutdown would have a negative effect on the job numbers, and that is now becoming tangible.

“The 130,000 increase in employment was the smallest in six months and followed a revised 145,000 gain in September that was weaker than initially estimated, according to the ADP Research Institute in Roseland, New Jersey. The median forecast of 39 economists surveyed by Bloomberg called for an advance of 150,000 jobs.” Continue reading

SEPTEMBER US JOB REPORT CARD – PASS OR FAIL?

jobs-reportBY: Adam Gavriel

Amidst everything the government shutdown put Americans through, September’s job report stayed true to the slow and steady progress that has gripped the nation since the Great Recession began.

The report shows an unemployment rate of 7.2% down from 7.3% in August, and that the U.S. economy added 148,000 jobs in September.

Although hiring was lower than economists expected, it was still enough to lower the unemployment rate to 7.2 percent. According to the Associated Press, the nation averaged a positive gain of 182,000 jobs per month from April through June, and has averaged just 143,000 jobs a month from July through September.

Many economists are weary of the October report, which may be very highly effected by the shutdown. Fortunately, this is only to be a temporary effect on a long-term problem. With this, economists understand that they may not have a clear look at unemployment until the November or December jobs report. Continue reading

ECONOMICS 101: NOBODY AGREES ON ECONOMICS

1_photoBY: Adam Gavriel

With so many conflicting reports on the American economy, it’s hard to get a true read on the strength of the recovery.

A report from Reuters.com states that contracts to buy previously owned homes in the US fell for the third straight month in August; however fewer Americans filed for jobless benefits last week.

A different report showed a sharp decline in consumer prices during the second quarter of this year.

“Together, the data offers a challenge for the Federal Reserve, which wants to see more evidence that the U.S. economy is gaining momentum before it scales back a bond-buying stimulus program.”

Continued:

“The Fed last week flagged a rise in interest rates as a threat to the economy, and also said that employment and inflation remain too weak.”

Although economists believe that the housing market isn’t collapsing, it appears to be losing steam.  

The labor market, on the other hand, seems to be continuously heading in a slow by steady recovery. Last week, initial jobless claims for state unemployment benefits dropped by 5,000. This at the same time that economists believed the expected numbers in jobless claims would be on the rise.

The four-week average of new claims fell to its lowest level since June 2007.

Conflicting reports continue though, as The Commerce Department said prices for goods and services purchased by U.S. households fell in the second quarter – for the first time in four years.

“That is worrisome because it suggests demand in the economy is so weak that business have little leverage to raise prices. Bernanke has said the Fed doesn’t want to end its bond-buying stimulus program until inflation begins to trend higher.”

This marked the first decline since the first quarter of 2009, one of the darkest times since the recession began in 2007.

In such a serious time of recession, it continues to be nearly impossible to get a clean read on the U.S. economy. While the unemployment rate continues to drop steadily, it does not take into account those who have left the labor force completely, or are not actively looking for work.

With these conflicts comes no clear way of getting a solid read on the economic recovery. All we can do is put our heads down and get our feet moving on the pavement towards helping each other.

That’s why at Crossroads Consulting, we continue to roll out services that do our duty as a search agency to help you from step one, to stepping into your new office. With resume and interview preparation services, and over 50 job openings we are looking to fill today, we want to hear from you!

Our job is to help you find a career. And we hope to do that by putting the ‘human’ back into ‘human resources

Photo Courtesy of media1.policymic.com

NATION IS BLEEDING JOBS

stock-photo-layoffs-and-recession-newspaper-headlines-documenting-deep-job-cuts-24000538BY: Adam Gavriel

Once again, the numbers are not all as they seem.

A report from the Washington Associated Press has new figures coming in that 20 states had to cut jobs in August. This of course suggesting that the modest improvement in the U.S. economy is just that – modest; and not benefiting the entire nation.

“The Labor Department said Friday that 29 states added jobs, while Montana showed no net gain or loss in August. Unemployment rates rose in 18 states, fell in 17 and were unchanged in 15.”

Jim Diffley, chief US regional economist at IHS Global Insight states “the picture is decidedly mixed,” and “we’re still optimistic about the improvement (in hiring), but it’s been slow.”

It sure has, Jim.

“The tepid hiring gains mean that most states still have fewer jobs than they did when the recession began in December 2007. HIS Global Insight forecasts that only 18 states will have returned to their pre-recession job levels by the end of this year.”

The United States still has 1.9 million fewer jobs than before the recession began, and hiring has averaged just 155,000 a month since April.

Nevada, despite adding 11,200 to the payroll number, has the highest unemployment rate in the nation at 9.5 percent. Illinois would come in at second-to-last with 9.2 percent, and North Dakota remains at the top with an unemployment rate of just 3 percent.

It is still baffling to all that the United States economy is as much in shambles as the New York Giants offensive line. And while blowing it up and starting over for the New York Giants might be the correct play, you certainly can’t implode an economy and start from the bottom to move your way to the top.

To help the economy, we need to help each other. We need to work our connections, we need to get diligent in everything we need to do, we need to lend a helping hand. And I say we here referring to us here at Crossroads Consulting, you – reading this blog – and to every American that will listen. It takes a country effort, to rebuild and continue the growth of the nation.

There are jobs out there though, we promise. And at Crossroads Consulting, a professional search firm, we understand that not only are jobs hard to come by – but the competition for these jobs can be fierce.

Please take a trip over to Crossroads Consulting today to look at the job openings we are seeking to fill. If you’re not confident in your resume, or have been too long out of the job search game, we can help you there too with our recommended resume and interview preparation services.

If nothing else, we would love to give you a friendly face to speak with during your job searching time. That is our mission here at Crossroads Consulting – to put the ‘human’ back into ‘human resources’

JULY UNEMPLOYMENT NUMBERS ARE IN

English: U.S. map with counties labeled by FIP...

(Photo credit: Wikipedia)

BY: Adam Gavriel

A fascinating story from NPR reports that in July, the United States unemployment rate continued to fall. The numbers for July are in and reports from the Bureau of Labor Statistics say that the unemployment rate fell to 7.4% from 7.6% and the US added 162,000 jobs in July – which came in below economists’ expectations.

From the report

Total nonfarm payroll employment increased by 162,000 in July, with gains in retail trade, food services and drinking places, financial activities and wholesale trade. Over the prior twelve months, nonfarm employment growth averaged 189,000 per month.” 

On the report as a whole, Barclays Capital economist Peter Newland called it “clearly weaker-than-expected.” He goes on to add “But one should not overstate it – the unemployment rate continues to trend down and average job growth of 175,000 will be more than enough to continue to push it lower.”

Before the report was released, economists expected an addition of 185,000 jobs to the economy.

Of course, the unemployment rate is always an imperfect way to calculate the American recovery. While it is a good measure to grasp the big picture, digging deeper may reveal a different story.

While unemployment in America continues to trend downward, underemployment remains a major issue in America, as does the situation of college graduates entering the workforce since 2008.

The number of long-term unemployed (27 weeks or more) was little changed at 4.2 million people. These 4.2 million account for 37 percent of the unemployed; and has declined just 921,000 over the past year.

Directly from the Bureau of Labor statistics release:

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged at 8.2 million in July. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.” 

Continued, there were 988,000 discouraged workers in July, up 136,000 from a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. That’s nearly a million Americans not looking for work because they are so pessimistic about the workforce not accepting them, and this number is UP over the past year while the unemployment rate has gone DOWN.

Again, the story always goes deeper.

Here at Crossroads Consulting, we could not be more elated that the unemployment rate continued to drop in July; but we are still distraught over the general  perception of the United States economy.

As an employment agency seeking to get Americans working TODAY, we want to re-instill the confidence in those “disgruntled” Americans.

The jobs are out there, and we have plenty of them. With near 50 positions nationwide that we are looking to fill TODAY, we want to hear from you. If you’re not confident in your resume, or are so disgruntled, come talk to us and utilize our recommended resume service. It is our job to get you the career you are looking for.

By putting the ‘human’ back into ‘human resources’ we are here for one reason, to make your life easier.

Please contact us today.

FED RESERVE HURTING YOUR JOB CHANCES?

English:

(Photo credit: Wikipedia)

BY: Adam Gavriel

The Federal Reserve has a dual mandate to promote price stability and ensure full employment. It has yet to achieve either. It has set an annual inflation target of 2 percent, yet the consumer price index rose only 0.1 percent in May after falling 0.4 percent in April, and it was up only 1.4 percent in the 12 months ending in May.” 

This quote pulled from an article published on Bloomberg.com Monday by author A Gary Shilling, is an authors clear frustrations boiling over and onto the page.

Mr. Shilling continues: “The central bank hasn’t defined what it would consider full employment, even when it pledged to continue buying $85 billion in securities each month ‘until the outlook for the labor market has improved substantially.’” 

The Federal Reserve’s efforts have not appeared to be overly effective in the employment market. Despite a recovery, and a slow by steady improvement, the US unemployment rate remains at 7.6 percent – relatively high for historical standards.

About 1.65 million more people would have jobs if the unemployment rate dropped to the Fed’s trigger level of 6.5 percent. Even though the Fed hasn’t specified a full-employment rate, past discussions suggest it believes that 5 percent to 6 percent joblessness is possible without straining labor markets. A 5.5 percent rate would add an additional 1.6 million employees, for a totally of 3.2 million.” 

Unfortunately for the American economy and job seekers, the United States unemployment rate hasn’t been below 6 percent since July 2008, and hasn’t been five percent or lower since April 2008; now over five years ago.

This report from Mr. Shilling has to be one of the most informative we have seen on the Economy in quite some time. The veteran expert on the economy paints a bleaker picture than the numbers are trying to convey. While the American economy remains in a recovering trend, the numbers simply do not reflect where the country needs to be. Underemployment and labor participation rates continue to truly reflect what continues to be a struggling nation.

As an employment agency, we at Crossroads Consulting take these numbers to heart when they are released. In the office we are in a position to directly impact the Nation’s economy as a whole, and we take pride in our ability to help our neighbors.

Conducting business as a search firm, it is also our duty to find you. Unfortunately, we can’t find all of you. We implore you to use us as your connection into the position you have been looking for. Crossroads Consulting is currently hiring nearly 50 positions located around the United States, but we can’t fill them without YOU.

Even if you can’t find a position that you’re looking for on our website, make sure you email us your resume TODAY. Not confident in your resume? We have a recommended resume service that will make sure your resume most effectively jumps off the page to potential employers.

We want to be there from step one, until you’re walking into the office on your first day. Our mission is to put the ‘human’ back into ‘human resources.

HOPE ON THE HORIZON?

BY: Adam Gavriel

There may be some hope on the horizon for U.S. manufacturing activity.

According to a report from CBS News, U.S. manufacturing activity grew in June behind a pickup in new orders and stronger production. This increase suggests that many are expecting factories to rebound in the second half of the year, and hopefully contribute to helping the economy grow.

The Institute for Supply Management said Monday that its index of factory activity increased to 50.9 in June. That’s up from 49 in May, which was the lowest reading in four year. A reading above 50 suggests growth, while those below indicate contraction.”

While this is great news, there always seems to be a counter. Manufacturing employment fell in June to 48.7% its lowest level since September 2009. This of course implies that Friday’s June employment report will show that factories cut jobs for the fourth straight month.

Although, there are other sings that U.S. manufacturers are starting to recover.

U.S. business stepped up their orders for factory goods in April and May. Consumers also spent more in May on cars and trucks, which will continue to help the recovery of auto factories. Sales at auto dealers also rose in May by the highest rate in six months.

Unfortunately, while a 2.4% growth of the economy was expected, many economists expect growth to remain more stagnant between a rate of 1.5 and 2 percent.

The U.S. economy expanded at only a 1.8% annual rate in the first three months of the year, the Commerce Department said this week. That was much slower than its previous estimate of a 2.4 percent rate. The main reason for the lower figure was consumers spent less on services than initially thought. Still, spending on long-lasting factory goods, such as cars and appliances, remained healthy.”

As Van Halen would put it; “one step ahead, one step behind”. The time to reinvigorate and reestablish the U.S. economy is ‘right now’ and only together as a team do we have the power to change it. As an employment agency, Crossroads Consulting is here to be the team captain, and get the ball rolling. We are constantly looking to fill jobs across the nation TODAY, and we can only do that with your help. As a search firm, sometimes we’ll find you, and if we find you, we’ll definitely find you a career as well. With all teams though we need your help, as there is no ‘I’ in team (but there is a ‘me’).

The employment agency dedicated to putting the ‘human’ back into ‘human resources’ we want to work with you from start to finish. Not comfortable in your resume? We can help you there with our recommended resume service. Need a connection? We have plenty of those, reach out and let’s talk. It is not a time to be timid, it’s time to go out and take what’s rightfully yours.

We look forward to hearing from you!