Tag Archives: Gross domestic product

REAL UNEMPLOYMENT NUMBERS

BY: Adam Gavriel

In the case of the American economy, slow and steady is NOT winning the race.

Disappointing numbers from April are starting to leak out, and a report from CNBC.com from Wednesday reports that private companies created just 119,000 jobs last month, well below expectations.

Economists had expected 150,000 jobs to be created in April (a prediction down from March), and the economy under-performed to the lowered standards.

“”Nearly every industry has seen slower growth since the beginning of the year,” Moody’s economist Mark Zandi said on CNBC. “Smaller businesses are experiencing much weaker growth.””

Without the support of strong small businesses, the American economy will have difficulty creating jobs. Small businesses would account for just 50,000 of the added 119,000 jobs. Zandi believes that this may be due to the Affordable Healthcare Act (Obamacare). Zandi went on to say in an interview that, “The data seems to be suggesting healthcare is having an impact.”

Continuing reports from CNBC.com suggest that Gross Domestic Product (GDP) is in the middle of its longest sub-3% growth rate since 1929!

Unemployment, that also includes the jobless, and the underemployed (often referred to as the “real” unemployment rate) remains at 13.8%.  Nevada has been hit the hardest with a real unemployment rate of a staggering 19.6, nearly one-in-five Nevadans are out of work. Only six states have real unemployment rates of less than 10%. They are North Dakota at 6.2%, South Dakota at 8.1%, Nebraska at 8.6%, Wyoming at 9.5% and Oklahoma and Iowa at 9.8%. (See the actual numbers of all 50 states HERE).

Although the national reported unemployment average has actually decreased as of late, the real unemployment rate has risen in six states, and stayed the same in three (including Connecticut).

Michael Pento, founder of Pento Portfolio Strategies, had this to say about the economy:

“The fact is that the U.S. economy isn’t growing fast enough to significantly increase the revenue to the government, but our debt is still soaring. It’s a shame they won’t just implement real measures to grow the economy like reduce regulations, simplify the tax code and balance the budget.”

The Bureau of Labor Statistics will release the April numbers officially Friday.

While the economy remains at a standstill, we at Crossroads Consulting are trying desperately to help, but we need you to fulfill our goal of finding rewarding work for as many people as we possibly can.

With over fifty job openings, Crossroads Consulting is looking, not only for people with good resumes, but just good people to fill openings we’re working on all around the nation.

Send us your resume NOW. If you’re not confident in how it looks, we are available to help you there too with our recommended resume service. 

Human resources is a human game, and human capital is what makes it work. Our attitude is right there for everyone to see in our motto, “We’re putting the ‘Human’ back into ‘Human Resources.'”

ONLY THING MORE GROSS THAN GDP IS EMPLOYMENT NUMBERS

money-Photoxpress_2881713-1024x680BY: Adam Gavriel

The United States Job Market continues to impose its will on other aspects of the US economy. The unpredictability of the jobs market since the recession in 2008 has caused fluctuating stock prices in the United States. This trend does not appear to be stopping any time soon.

A report from Bloomberg.com released today shows that stock prices continue to fluctuate as the reported gross domestic product (GDP) rose by less than forecast, even as jobless claims fell more than expected. From the article:

““There were no real surprises here,” E. William Stone, chief investment strategist at PNC Wealth Management in Philadelphia, said in a telephone interview. His firm manages about $115 billion. “The economic numbers tell you that the pace of recovery is still sluggish. But they also give you signs that the recovery may be more durable.””

GDP was expected to climb at a 0.5 percent rate, while it actually grew at just 0.1 percent.

This is all going on while jobless claims continue to fall in the correct direction. The report states that jobless claims declined by 22,000 to 344,000 for the week ended 2.23. This is a huge difference over the predicted 360,000 claims by Bloomberg economists.

Unemployment insurance has also seen drops, now at its lowest level since June 2008.

While these are all encouraging numbers, the job markets unpredictability is still a major factor in determining just which way the economy is headed. While recent months have shown promising growth, this needs to become a sustainable process in order to really get Americans working again.

Markets like the S&P 500, and NASDAQ, are trading at some of their highest levels ever recorded, a somewhat telling sign of the economy as a whole.

As jobless claims continue to fall, more Americans are working again. When more Americans are working again, spending goes up. It’s a vicious cycle that drives the economy, and it is one that will never stop. This cycle, however, always begins with Americans WORKING.

At Crossroads Consulting we are doing our job in order to help you get working again, and drive that GDP to where America wants it to be. With over fifty job postings from around the Nation we are looking to fill TODAY, we need your help in filling them.

As a company we understand the grind that some of you out there are going through, and understand that it’s easier to get knocked down, than to get back up again. Many Americans, (too many for our liking), have been knocked down since the recession hit, and are finding it harder and harder to get back up. At Crossroads Consulting we want to offer you that hand that helps pull you up off of your back. With a recommended resume service, and interview preparation, as well as a no-nonsense attitude when it comes to getting YOU working again, we’re here to help.

Remember, at Crossroads Consulting we’re putting the ‘human’ back into ‘human resources.’

THE “R” WORD…NO RELATION TO THE “F” WORD

BY: Adam Gavriel

The new “R” word that economists would like to see on everyone’s mind this year is, “rebound” and not, “recession.” Reports from Bloomberg on January 31st show the economy will bounce back in the current quarter after gains for consumers and businesses in the final three months of 2012.

“It would be a mistake to view this drop in GDP — driven by temporary corrections in defense spending and inventories — as a possible harbinger of recession,” Nigel Gault, chief U.S. economist for IHS Global Insight in Lexington, Massachusetts, said in an e-mail. “We expect GDP growth to rebound to around 2 percent in the first quarter.”

GDP saw gains of 2.2 percent in 2012, and many economists believe it will be on the same track this year with gains in the neighborhood of 2-2.3 percent.

“Growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors,” the Federal Reserve said yesterday at the conclusion of a two-day meeting in Washington. “Household spending and business fixed investment advanced, and the housing sector has shown further improvement.”

There’s a reason why they’re called “natural disasters.” Superstorms like Hurricane Sandy, and Katrina seven years ago do more than just ravage destruction on the lands that are unfortunate enough to see these storms land on. These monsters also take out local businesses and reduce spending in the area. When it hits major areas like New Orleans with Katrina, or New York City with Sandy, these can have not only a domestic effect, but a global one as well. The United States economy finally seems to be rebounding after the hurting that Sandy put on the east coast. There’s that word again, rebounding.

But what does all this have to do with the job market? Well…

Government figures that are to be released soon are projected to show that employers added 165,000 workers to payrolls, an increase of 10,000 from the number in December.

Home-building also rose 11.9 percent last year, it’s best increase since 1992. And as we have reported here on the blog at OutOfOurMind, home-building is a key factor in economic recovery, especially among young families.

There are varying reports and viewpoints on how the economy is going. Of course, a rebound after a recession isn’t something to get too proud about, but it is certainly a step in the right direction; and these steps need to start somewhere. While the numbers aren’t as promising as they need to be, the economy at some points seems headed in the right direction, while stalling at others.

Estimates of recovery are great, but until it comes to fruition in reality, it’s all speculation.

Here at Crossroads Consulting we have been trying to get Americans working again. With over fifty job postings from around the nation, our job is to make sure you get one! If you’re not confident in your resume or interviewing skills, we can help you there as well.

All we want to do is make this process as easy as possible for you, and maybe provide a few laughs along the way in what we know can be a dark time.

Remember, “We’re putting the ‘Human’ back into ‘Human Resources.’”

MILLENNIAL HOUSING

BY: Adam Gavriel

When sitting down to think about what truly drives the economy, you can easily come up with a few answers. There are the obvious, job-creation, employment, and consumer spending numbers that seem to be the popular answers. But what about the not so obvious factors? Important factors like small-business hiring and strength, as well as inflation are often overlooked. Of course, the topics that are overlooked are not limited to these two components.

On December 24th, theatlantic.com posted a very interesting article concerning automobile and home sales as a driving force in the future of the economy. Continue reading