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Posts Tagged ‘u.s. jobs report’

America and Europe on the Brink of Economic Disaster

September 5th, 2011 Comments off

Not much talk anymore about green shoots from U.S. Federal Reserve chairman Ben Bernanke. Despite infinite and very creative attempts by politicians in the U.S., the U.K. and the Eurozone to twist and spin economic statistics to make it appear that the world is indeed recovering from the global economic crisis, the data that is emerging is so bad it can no longer be “massaged.” The latest jobs report from the United States showed that in the month of August, zero jobs were created by the economy. The official news was bad by itself, but it hides an even worse reality. Even with no net new jobs created, the official discounted unemployment rate in America remained at 9.1percent. With approximately 200,000 new adults entering the work force each month, the only way that could have happened with no change in the U3 unemployment rate is if 200,000 discouraged job seekers left the labor market, or were merely eliminated form the ranks of the unemployed by the slick action of a statistician’s pencil.

While America’s jobs crisis worsens, Europe has its own woes to contend with. The sovereign debt crisis is clearly getting more dangerous, with both Spain and Italy increasingly vulnerable to the bond vigilantes. And the U.K. is experiencing sluggish or non-existent economic growth, in the process undermining the objectives of its austerity program. The global economic and fiscal situation is so bad, even the IMF is starting to hit the panic button. I think the happy talk from politicians may just about have run out of steam.

 

                 

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Nouriel Roubini and Bizarre U.S. Jobs Report

November 6th, 2010 Comments off

Three days after the Democratic Party lost control over the U.S. House of Representatives in the midterm election, the Obama administration heralded a supposedly impressive jobs report. According to the Bureau of Labor Statistics, the U.S. economy created a net total of 150,00 jobs during October. Sounds good. However, the unemployment rate stood at 9.6 percent, suggesting that previously discouraged workers reentered the job market.

Now here is where things get really strange. According to Nouriel Roubini, there is something contradictory about the claim of strong job creation in October. Here is what he tweeted: “Household survey: employment fell 330K last month & labor force participation rate at 25yr low. How does that square with 150K jobs gain?”

If Professor Nouriel Roubini is skeptical about the laudatory jobs report just released, we all should be.