Why the September Jobs Report Is So Brutal

Employers continue to slash their payrolls

By Liz Wolgemuth

Posted: October 2, 2009

The future is unclear: One of the most difficult things to understand about September's jobs report is how far the job market reality was from the government's stimulus forecast. The White House estimated that with the stimulus, the unemployment rate would peak at 8 percent. Without a clear plan to stimulate future job growth, it's unclear how long it will take for the 15.1 million unemployed to gain re-employment in any significant volume. Employers tend to shy away from the risk of new hires until they are confident of the state of the economy. Even for the long-term unemployed, "when the economy is chugging along, firms are willing to take a chance" on hiring and training, says Katz.

Still, the market is improving, as job losses are much less than they were last winter. "What is still very much open to question is how fast the move will be to stabilization of payrolls and eventually to job growth," says Joshua Shapiro, chief U.S. economist at MFR. "We continue to believe that the process will be a slow one and that households will be contending with weak income growth and balance sheet issues for some time."

Selling our soul to China....

You hit the nail on the head marcc

Bob of PA @ Oct 14, 2009 08:11:48 AM

We need MORE dentists and doctors!!

My Dad recently had a 'filling' done on one of his teeth. The dentist charged him $320, for ONE filling and x-rays. How in the world is the average 'working man' who makes $30-40k a year supposed to be able to pay for that, when that is usually the most he can save in a MONTH?

We need MORE doctors, and MORE dentists!!! I'm sure if there were more, there could be some competition. I'd gladly pay $250, or $200, or $150, or maybe what I think it is 'worth', less than $50. The way it is now, the dentists seem to have their working space setup to have at least 3-5 patients sitting in chairs all at once. He just goes around like it is a 'cattle call'; working on one then the other, then back to this or that one.

Now don't give me any B.S. saying that 'they have lots of costs of rent and 2-5 employees too'!! I know good and well he don't pay any more than $10 an hour to most of his help.

Having MORE dentists would cut this exorbitant cost down-to-size. The way it is right now, the medical 'professionals' are a bunch of money-hungry crooks! We need educators and the state lawmakers providing money for education for MORE Doctors and Dentists. That is the ONLY way to lower costs, thru COMPETITION of skill... It IS capitalism, folks. Don't make it 'government run socialism'.

ed of OK @ Oct 07, 2009 07:00:46 AM

Job Loss in America

Doesn't anyone remember how business failed to create jobs during the Depression? FDR put in place the WPA (a Federal Agency) which created hundreds of thousands of jobs through massive construction and improvement of roads, port facilities, public parks, and other basic infrastructure needs. American capitalism, after the collapse of the banking industry, simply failed to provide a mechanism for putting people to work. It appears that American capitalism (or American "corporatism" for a more accurate phrase ), this time around, still can't put people back to work.

Bob Warner of FL @ Oct 03, 2009 19:11:37 PM

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