Tag Archives: Forecast

Economists: Jobs outlook the worst since January 2010

Unemployment Rate (Not seasonally adusted)
Unemployment Rate (Not seasonally adusted)

From Bloomberg Businessweek.

Excerpt:

U.S. companies’ hiring plans reflect the worst employment outlook since January 2010 as demand slows in the world’s largest economy, a private survey showed.

Fewer companies project payrolls to rise in the next six months compared with a July survey, while more plan to cut workers, the National Association for Business Economics said today in Washington. The share of firms planning to raise prices was the smallest in almost two years.

Businesses are concerned about the European debt crisis, with 30 percent of participants anticipating it will cause a decline in sales through early 2012, the survey showed. While companies said they expect the U.S. will keep expanding, they trimmed projections for the pace of growth and pared capital spending plans, helping explain why the recovery has failed to gain momentum.

“Expectations are muted,” Shawn DuBravac, chief economist at the Consumer Electronics Association in Arlington, Virginia, who analyzed the results, said in a statement. The latest survey’s “respondents remain cautiously confident.”

Within the employment outlook, 29 percent of companies said they would increase hiring, down from 43 percent in July, while 59 percent reported they plan no change in staff, a 10-point jump.

[…]The dimming outlook for employment and investment stems from the slowdown in growth. Eighty-five percent of companies surveyed said that the economy may expand 2 percent or less in the period ending this quarter compared with the final three months of 2010. In the prior survey, just one of every five economists polled predicted growth would be that slow.

The debt crisis in Europe already is hurting U.S. firms and is likely to continue, according to a special question in the latest survey, conducted between Sept. 20 and Oct. 5. Twenty percent of participants reported developments in Europe have led to as much as a 10 percent drop in sales so far this year.

This is not a surprise. Aside from signing the three free trade deals with Colombia, Panama and South Korea, the Obama administration has done everything wrong with respect to stimulating economic growth – the necessary precursor for private sector job creation.

Unemployment rate tracking above Obama’s projection

I have an idea. Let’s put a Democrat ACORN lawyer in charge of the economy during a recession caused by Democrats and ACORN. What could go wrong?

This: (From Hot Air, H/T Ace of Spades)

Barack Obama pushed for almost $800 billion in stimulus spending by claiming that it would save or create millions of jobs this year.  Critics pointed out that most of the spending started in 2010 and more than half of it came in 2011 or later, calling the stimulus useless at best for salvaging jobs, let alone creating them.  The White House has quietly agreed with its critics, according to the New York Times, and now says it expects to see no hiring rebound in 2009.

I can’t believe what I’m reading. Are you telling me that the Marxist-in-Chief blew trillions of taxpayer dollars on big government wastefulness, and he created NO JOBS?

Hot Air continues:

We just got done hearing Obama take credit for saving 150,000 jobs — which his administration never documented.  Now we’re hearing that the stimulus package demanded by Obama and passed over near-unanimous Republican objections won’t actually make any difference at all.  The cure, Obama and his team now admit, is private-sector growth.

Take a look at the numbers below. We are getting worse unemployment numbers for Mr. Teleprompter than if he had never spent a dime of taxpayer money at all.

Chart by Geoff from Innocent Bystanders
Chart by Geoff from Innocent Bystanders

Hot Air explains:

Actually, only the red indicators come from Geoff.  The chart itself comes from page 5 of an analysis prepared by Romer and Obama’s council of economic advisers in support of the $787 billion Porkulus plan.

We’re already past 8.8%, well on the way to 9.5%, above her predictions in either case.  They predicted that the upper curve would occur without spending $800 billion on government make-work, and that passage would prevent the severe spike in unemployment.  Now Romer admits that the upper curve will happen anyway.

Remember under George W. Bush, when unemployment averaged about 5% over the course of his two terms? Yeah, I miss him too.