Unemployment claims in US show layoffs continue to batter economy

More than five months after the coronavirus pandemic began throttling the economy, layoffs remain widespread, the U.S. government reported Thursday, the latest sign of the labor market’s painstakingly slow recovery.

Last week, 833,000 workers filed new claims for state unemployment benefits, while 759,000 new claims were filed by freelancers, part-time workers and others under a federal program called Pandemic Unemployment Assistance. Both figures, which are not seasonally adjusted, were increases from the previous week.

“It’s pretty bad at this stage in the crisis,” said Gregory Daco, chief U.S. economist at the forecasting firm Oxford Economics. “I feel like this is a very fragile labor market at a critical juncture.”

There has been progress from the early days of the pandemic, when weekly tallies of new claims surged past 6 million. But recent improvements have been more arduous.

Of the 22 million jobs lost in March and April, more than 9 million have been regained. And most analysts expect that the monthly jobs report, scheduled for release Friday, will show a dip in August from double-digit unemployment rates.

But the damage to the economy has been wide and deep. As of mid-August, more than 29 million Americans were receiving some sort of unemployment insurance.

The report Thursday was the first to be affected by a change in the way the Labor Department accounts for predictable seasonal patterns, like temporary holiday workers who are laid off in January.

The seasonally adjusted figure for the week was 881,000. The number looks much lower than the previous week’s adjusted figure of just over 1 million, but the drop can be attributed to the altered methodology. Because the change means seasonally adjusted numbers cannot be compared with those tallied until now, The Times is emphasizing the unadjusted figures.

The unadjusted number of 833,000 last week was an increase from 826,000 the week before.

Daco said he was particularly concerned about the increase last week in new claims for Pandemic Unemployment Assistance, the program for those generally ineligible for state jobless benefits. The total of 759,000 was up from 608,000 a week earlier.

“It could reflect a weakening economy in some of the states worst impacted by the health crisis,” he said, “or it could be that some of the workers that had returned are finding that it’s not possible or sustainable to return to their primary economic activity in the current environment.”

Help wanted, depending on the industry.

Some businesses are hiring. Postings at the job search site Indeed rose slightly last week, although the total is still more than 20% below what it was this time last year.

The hospitality, tourism, and sports and fitness sectors are in the worst shape, with postings down more than 40% from where they were a year ago. Listings for higher-wage jobs in banking, finance and software development are also much more scarce.

Construction, driving and warehouse jobs seem to be the most plentiful.

The job site ZipRecruiter has seen a gradual increase in job listings over the past couple of months, but the pace of growth began to slow in mid-August, said Julia Pollak, the company’s economist.

Consumers pulled back on spending after a $600 weekly jobless benefit supplement ceased in July. At the same time, many small businesses are running out of the money they received through the federal Paycheck Protection Program.

A recent survey from the National Federation of Independent Business found that 1 out of 5 small-business owners said they would have to shut down if economic conditions did not improve in the next six months.

Congressional negotiations on a new relief package remain at a standstill.

The Labor Department report provided no fundamental change in the jobs picture that would resolve the stalemate between Republicans and Democrats in Congress over a new economic relief package.

With the end of the $600-a-week jobless benefit supplement, most states are moving ahead with plans to provide unemployed workers with a temporary replacement: a weekly $300 supplement paid out of federal disaster relief funds.

As of Wednesday, 45 states had applied for a grant from the Federal Emergency Management Agency. Six of those — Arizona, Louisiana, Missouri, Montana, Tennessee and Texas — have started paying out benefits, according to the Labor Department, but a vast majority have not.

Most will probably not be able to gear up to start payments until mid-September or later. The supplement is expected to last four or five weeks.

South Dakota is the only state that has confirmed it is not taking part. Gov. Kristi Noem says her state doesn’t need the money.

A handful of states, including Kentucky, Montana and West Virginia, have plans to boost the supplement with an additional $100.

-Patricia Cohen and Gillian Friedman, The New York Times-

New US jobless claims rise to 1.42 million amid COVID-19 surge

WASHINGTON - Claims for government benefits by newly unemployed American workers rose to 1.42 million last week, the Labor Department said Thursday, reversing weeks of declines as coronavirus cases skyrocket nationwide.

The increase defied analysts' expectations of another weekly decrease in new claims, which spiked in March as US businesses shut down to stop the spread of coronavirus put have been dropping since.

Adding to the toll were the 974,999 people in 49 states who applied for benefits under a program for workers who would not normally be eligible -- an increase of nearly 20,000 from the week prior.

However, in the week ended July 11, the insured unemployment rate indicating people actually receiving benefits declined 0.7 points to 11.1 percent, an indication that some people are returning to work.

"The overall message is that an economy able to recover well is stalling due to health concerns," chief economic advisor at Allianz Mohamed A. El-Erian said on Twitter.

The world's largest economy has seen a surge in COVID-19 infections as states roll back reopening measures, with nearly 64,000 new cases reported in the 24 hours to Wednesday, Johns Hopkins University said.

Some of the states seeing the biggest jumps in joblessness were also among those with the highest number of coronavirus cases, including Florida, where claims jumped 65,890 in the week ended July 11, the Labor Department said.

Agence France-Presse

Another 1.3 million workers file for US jobless benefits

WASHINGTON - Another 1.3 million US workers filed for unemployment benefits last week, as the slowdown in the pace of layoffs amid the coronavirus crisis continued, the government reported Thursday.

The figure for the week ended July 4 was 99,000 lower than the prior week, showing a steady decline as the world's largest economy gradually reopens and workers are recalled to their jobs.

But the level remains far higher than any pre-pandemic week. In the same week of 2019, only 211,000 people filed initial claims for jobless benefits.

The decline in the latest week slowed the four-week moving average to 1.44 million, the Labor Department reported, while 18 million remained on the jobless rolls through the week ended June 27.

President Donald Trump, who is counting on a strong economy to help in his tough reelection bid in November, has cheered the recent signs of recovery in the US labor market.

But economists and the Congressional Budget Office warn that it will take years for employment to return to pre-pandemic levels.

And the US could suffer a second wave of layoffs as more states see spiking case counts, and once expanded jobless benefits expire.

"Filings remain high and are declining at a stubbornly slow pace," said Rubeela Farooqi of High Frequency Economics. 

"We could see upward pressure in coming weeks in response to a surge in virus cases and related closures of businesses."

The unemployment rate in June dropped to 11.1 percent as 4.8 million jobs were added, with huge gains in the leisure and hospitality sector, which suffered the biggest blows from COVID-19 restrictions on travel and restaurants.

But Trump says the "crisis is being handled" and the economy is "roaring back."

Agence France-Presse

Indonesia's GoJek latest app to cut jobs as virus takes toll

JAKARTA - Indonesian app giant GoJek said it would cut hundreds of jobs and ditch at-home massage and cleaning services as the global pandemic slashes demand for face-to-face businesses, after Singapore-based rival Grab also announced layoffs.

Starting as a ride-hailing service in 2010, GoJek launched an app 5 years later with a wide range of offerings, including deliveries, takeaway food and financial services, that could be ordered via smartphone.

The company attracted investments from tech giants including Google, Facebook and Tencent.

But on Tuesday it said it would cut 430 posts -- or about 9 percent of its full-time staff -- as it cancels massage, house cleaning and GoFood Festivals, which supplies vending space for food sellers.

"These businesses are dependent on close human interaction, and have seen a significant downturn over the past few months as the COVID-19 pandemic has affected consumer habits," the firm said in a statement.

"These will be the only COVID-19-related layoffs," it added.


However, GoJek said its logistics and grocery delivery businesses had surged since the pandemic hit.

The firm -- which claims some 170 million users in Indonesia and has expanded to other Southeast Asian markets -- employs freelancers for many of its services, including ride-hailing drivers.

It did not respond to requests for comment on how many of its freelance staff would be affected by the cuts. 

Last week, rival Grab announced that it would dismiss 360 employers, or about five percent of its full-time workforce.

In May, US-based ridesharing giant Uber said it was slashing a quarter of its global workforce -- about 3,000 employees -- and trimming investment to survive the financial hit to its business from the disease crisis.

Agence France-Presse

US faces unemployment crisis amid record trade drop

In further signs of the crisis facing the world's largest economy amid the coronavirus pandemic, new data Thursday showed US a record plunge in US exports as layoffs exceeded 42 million.

The two key reports on economic health indicate that even as Wall Street regains its strength and some industries show signs of recovery as virus lockdowns ease, the United States is not out of the woods yet.

The Labor Department said 1.87 million workers filed new jobless claims last week, 249,000 less than the week prior but still a grievous figure nearly three times higher than the weekly record in the pre-pandemic economy.

"This and other indicators suggest not that the job market is improving but that it's getting bad less quickly," Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities think tank, said on Twitter.

The decline in initial claims means the wave of layoffs caused by businesses closures ordered in mid-March to stop the spread of COVID-19 are slowing. 

More than 42 million workers lost their jobs, at least temporarily since mid-March, but the new data showed 21.5 million people were receiving benefits in the week ended May 23, an indication that millions either had their benefit claims rejected, or have since been rehired, or more likely a combination of the two.

After falling last week, the insured unemployment rate ticked up half a point to 14.8 percent -- a huge number of Americans not working, but that only reflects those with unemployment benefits.

That is a grim omen for Friday, when the Labor Department releases the all-important May jobs report and likely show national unemployment increasing to closer to 20 percent, from 14.7 percent in April, which was the highest unemployment rate in 90 years.

Despite the grim economic picture, Wall Street indices opened lower but were trending upwards by mid-morning, continuing a rally that had the tech-rich Nasdaq nearing its all-time high at the close of trading on Wednesday as investors are optimistic about the reopening of the economy.

But Bernstein warned high unemployment is here to stay.

"(The) National unemployment rate is likely at or above 20 percent, twice that of the Great Recession peak, and full employment years away," he said.

However, Labor Secretary Eugene Scalia said he remains confident the unemployment rate will fall below 10 percent by year end.

In an interview with Fox News, Scalia said "many of these jobs will come back quickly because they were still there."

Trade slammed 

Meanwhile, the Commerce Department reported that US exports and imports dropped by a record amount in April and the trade deficit jumped more than $7 billion to $49.5 billion and the coronavirus forced shuttered businesses and closed down transportation worldwide.

Compared to March, exports of US goods and services fell more than 20 percent or $39 billion to $151.3 billion, the lowest level in 10 years. 

Imports in the month dropped to $200.7 billion, a more modest 13.7 percent or $32 billion decrease.

"Trade activity slowed again, this time nearly to the worst of the contraction in the financial crisis," Oxford Economics said in an analysis.

"We think trade activity will see its worst year on record in 2020."

For the year to date, the US trade gap swelled by $26 billion, or more than 13 percent, compared to the same period of last year, according to the report.

The impact of the COVID-19 shutdowns were widespread throughout the data and in all industries and products, including aircrafts, air travel, oil, auto parts and clothing.

Travel alone fell nearly $3 billion in the month, the report said.

Although the collapse of trade in most cases meant the US deficit in goods alone narrowed with most countries, the deficit with China jumped to nearly $26 billion from $17 billion in March.

"Exports and imports will continue to be restrained by weaker global growth and falling demand at home and abroad in the aftermath of the virus outbreak," Rubeela Farooqi of High Frequency Economics said in an analysis.

Agence France-Presse

US layoffs surpass 38.6 million as lawmakers debate stimulus

WASHINGTON- Job losses in the United States are slowing but totaled an unheard-of 38.6 million since the coronavirus pandemic lockdowns began, while officials debate what additional steps will be needed to rescue the beleaguered economy.

Another 2.43 million Americans were put out of work last week, fewer than the previous week but still among the highest figures on record, according to the latest Labor Department data released Thursday.

Meanwhile, other reports showed US housing sales collapsed last month, while manufacturing continues to decline.

Initial claims for unemployment benefits appeared to have passed the peak hit in late March, but economists say joblessness is likely worse than the figures indicate since many people do not qualify for traditional aid.

"The dramatic spike in unemployment claims is trending down, but it still completely overshadows any precedent," Kate Bahn, director of Labor Market Policy at the Center for Equitable Growth, said on Twitter, noting that the latest number was three times higher than the record prior to the pandemic.

Democrats in Congress are calling for the Republican-controlled Senate to pass a $3.3 trillion spending measure approved by the House of Representatives last week to revitalize the economy, but President Donald Trump's administration has rejected the bill as he encourages more state government to loosen the lockdowns.

"We did the right thing, but we now want to get going... you'll break the country if you don't," he told African American leaders in a visit to Michigan, a key election battleground state.

The coronavirus pandemic has killed 93,406 people in the US and infected nearly 1.6 million others, according to John Hopkins University, despite widespread business shutdowns from mid-March to stop the virus's spread.

PARTISANS SPLIT

Weekly jobless claims declined but they remain well above any week during the 2008 global financial crisis and are more in line with job losses in the Great Depression last century.

"Forget the idea that they are coming down. If anyone thinks that 2.5 million new claims is anything but disastrous, they are deluding themselves," economist Joel Naroff said, warning that the economy is in the midst of a second round of layoffs.

The latest weekly number also does not include the 2.22 million people who applied for a federal program aimed at contractors and self-employed workers who would not normally qualify for traditional benefits.

House Speaker Nancy Pelosi pushed to approve the Heroes Act that includes $1 trillion for state and local governments, funds for hospitals, hazard pay for health workers, relief for devastated small businesses, and another round of cash disbursements to hard-hit US families -- measures many economists have been calling for.

But Treasury Secretary Steven Mnuchin, though acknowledging a "strong likelihood" additional aid will be needed, rejected Pelosi's effort as "obviously" partisan, and said officials will need to take some time to consider the next steps.

Pelosi fired back at Republicans, including Senate Majority Leader Mitch McConnell, for dragging their feet.

"Instead of telling laid-off workers to pause, Leader McConnell and the Senate GOP need to come to the negotiating table to help deliver the relief to protect lives and livelihoods."

HOME SALES PLUNGE

The Federal Reserve has rolled out trillions in new liquidity to ensure markets continued to function through the downturn, but the central bank's Chair Jerome Powell said additional government spending is necessary to spur a recovery.

During a video conference with community leaders across the country, Powell repeated earlier warnings of unprecedented economic uncertainty, saying "questions only the virus can answer complicate the outlook."

Adding to the building picture of the damage, the National Association of Realtors (NAR) said existing home sales -- a key sector in the world's largest economy -- plummeted in April, the first full month the lockdowns were in effect.

But realtors and economists are optimistic they will pick up quickly as the economy reopens due to very low borrowing rates.

Sales plunged 17.8 percent last month, dropping in all parts of the country, with sales in western states hit hardest, falling 25 percent compared to March.

NAR's Chief Economist Lawrence Yun said home sales have been "temporarily disrupted" by the pandemic but pointed to a year-on-year price increase of 7.4 percent as evidence that "listings that are on the market are still attracting buyers."

A Philadelphia Federal Reserve Bank monthly report released Thursday showed a slight improvement in manufacturing activity in the region the bank covers, though it was rebounding from a 40-year low in April.

Agence France-Presse

Millions more Americans file for jobless benefits as coronavirus layoffs widen

WASHINGTON - The global novel coronavirus crisis continues to batter the US labor market, with millions more Americans, including white collar workers, filing for unemployment benefits last week as the hit from the pandemic spills over into a broader swath of the economy.

Initial claims for state unemployment benefits totaled a seasonally adjusted 2.981 million for the week ended May 9, the Labor Department said on Thursday. While that was down from 3.176 million in the prior week and marked the sixth straight weekly drop, claims remain astoundingly high.

Economists polled by Reuters had forecast applications for unemployment benefits totaling 2.5 million in the latest week. Claims have been gradually decreasing since hitting a record 6.867 million in the week ended March 28.

The weekly jobless claims report, the most timely data on the economy's health, cements economists' expectations for a third straight month of massive job losses in May. The report came a day after Federal Reserve Chair Jerome Powell warned of an "extended period" of weak growth and stagnant incomes.

"We are on the back end of the first wave of layoffs, but now we are transitioning from the natural-disaster phase to the recession phase," said Josh Wright, chief economist at Wrightside Advisors in New York. "That's why so many white collar jobs are still being lost. We effectively amputated a large section of the economy, and we are going to limp along afterwards."

The economy lost a staggering 20.5 million jobs in April, the steepest plunge in payrolls since the Great Depression of the 1930s, as businesses were locked down to slow the spread of COVID-19, the respiratory illness caused by the virus.

Still, April was probably the trough in job losses during this economic downturn, which has also been marked by the sharpest decline in output since the 2007-09 Great Recession.

In addition to workers in industries and jobs not initially affected by the coronavirus shutdowns, economists attribute the continued elevation in claims to the processing of application backlogs, which accumulated as state unemployment offices were overwhelmed by the unprecedented wave of filings.

Many parts of the country are reopening and states and local governments are laying out plans to restart their economies. But with businesses and factories operating well below capacity, and fears of a second round of COVID-19 infections, economists do not anticipate a dramatic improvement in the labor market.

Some businesses have accessed loans from an almost $3 trillion fiscal package, which could be partially forgiven if they used the credit for employee salaries. But many small enterprises are expected to close permanently, leaving some of the 21.4 million people who lost their jobs in March and April out of work. 

(Reporting By Lucia Mutikani Editing by Chizu Nomiyama)

-reuters-

8 killed, 15 wounded in new clashes in Iraq

BAGHDAD - At least 8 people were killed and 25 wounded in new clashes between protesters and police in eastern Baghdad on Sunday, police and medical sources said.

The clashes were in Sadr city, a sprawling residential district of the Iraqi capital, and added to a death toll of more than 100 people killed in less than a week of protests over corruption and unemployment.

Police, backed by the army, used live rounds and tear gas to disperse the crowds at two separate locations in Sadr City, police said.

The protests pose the biggest security and political challenge for Prime Minister Adel Abdul Mahdi's government since it took power a year ago, and have revived fears of a new spiral of violence that could suck in influential militia groups.

Two years after oil-producing Iraq declared the defeat of Islamic State, security has improved but corruption is rampant, wrecked infrastructure has not been rebuilt and jobs are scarce. 

source: news.abs-cbn.com

US unemployment falls to 50-year low of 3.5 pct in September

WASHINGTON - America's jobless rate tumbled in September to its lowest level in 50 years, according to government data released Friday, delighting the White House even though it may not assuage recession fears as President Donald Trump's trade wars persist.

Meanwhile, with a strong dollar and slowing global economy, the US trade deficit widened in August, as the trade conflicts ate into export growth.

Trump immediately cheered the good jobs data, claiming his economic record should shield him from efforts to impeach him, and shortly after said a trade deal with China was possible soon.

But there was less-than-stellar news as well: The pace of job creation was the slowest in four months and wages fell, while the manufacturing workforce also shrank for the second time this year.

Wall Street was reassured by the news, with the benchmark Dow Jones Industrial Average ending the day with a gain of 1.4 percent.

Unemployment fell two-tenths of a point to 3.5 percent, matching the rate last recorded in December 1969, and well below what analysts had forecast, according to the Labor Department.

Employers added a total of 136,000 net new positions, which was below expectations, with notable slowdowns in education, government, finance and business services.

The August job gain was revised up sharply to 168,000, nearly 40,000 more than originally reported.

But signs of the slowdown were unambiguous: At 157,000, the average for the last three months is now well below the 223,000 a month recorded during 2018.

"Breaking News: Unemployment Rate, at 3.5%, drops to a 50 YEAR LOW. Wow America, lets impeach your President (even though he did nothing wrong!)," Trump tweeted.

The hotly anticipated jobs report also landed amid a raft of worrisome economic data showing Trump's trade wars have put a dent in the business environment and suggesting hiring should slow in the coming months.

But Federal Reserve chief Jerome Powell said Friday that although the economy "faces some risks, overall it is... in a good place."

The Fed's job "is to keep it there as long as possible," he said.

Average hourly wages fell by a penny to $28.09 last month, well below economists' expectations, putting an end to a year-long string of steady gains and limiting consumers' spending power in the coming months.

AS GOOD AS IT GETS

Despite the slight drop in the month, Trump hailed the increase in wages over the past 12 months.

"Wages are up by almost 3 percent. That's a fantastic increase for everybody out there working. We're very happy about those numbers," Trump told reporters at the White House.

But meanwhile the mining sector added no workers after three straight months of layoffs, and the auto sector shed workers for the fourth month in a row.

"Job growth is set to slow much further," Ian Shepherdson of Pantheon Macroeconomics said in a note to clients.

"This is as good as it's likely to get until the trade war is resolved."

But given the dwindling supply of workers in the US economy, some groups continue to benefit: Unemployment among Hispanics fell to its lowest level since records began in 1973.

And for workers without a high school diploma, the jobless rate fell to the lowest since records began in 1992.

The latest data did not reflect the nationwide strike launched last month by General Motors employees, who walked off the job the week after the survey for the September jobs report was conducted.

EXPORTS SLOW

In a separate report also released Friday, the Commerce Department said the yawning US trade deficit rose by nearly $1 billion in August as weakening foreign demand and the churning trade conflict ate into US export growth.

However, Trump said there is a "very good chance" to reach a trade deal with China soon.

"Right now we're in a very important stage in terms of possibly making a deal. If we make it, it will be the biggest trade deal ever made," Trump said.

But the unexpected trade deficit increase could weigh on GDP calculations for the third quarter, with a global economic slowdown expected to weaken US exports while the strong US dollar has fueled imports.

As a result, the US trade balance crept 1.6 percent higher to $54.9 billion for the month, surpassing economists' expectations.

Imports increased 0.5 percent, while exports rose 0.2 percent, rising more slowly than in July.

source: news.abs-cbn.com

The state of Britain's economy as Brexit looms

LONDON - British unemployment has hit a 45-year low, official data showed Tuesday, but the economy still risks falling into a deep recession owing to Brexit turmoil.

Here is an assessment of the economy and where it is heading, as Britain prepares to leave the European Union on October 31, with or without a deal according to Prime Minister Boris Johnson.

HOW POSITIVE IS THE UNEMPLOYMENT DATA? 

Britain's unemployment rate eased in July to 3.8 percent, the lowest level since 1974, and down on 3.9 percent in June. 

Annual wages growth meanwhile climbed to 4.0 percent, the highest level since 2008, but skewed by bonus payments.

On the surface, the data looks positive, but Britain's low unemployment rate is not boosting productivity. Many workers are in part-time employment or on "zero-hour contracts" offering no minimum guarantee of hours, say analysts.

"Employment has been rising appreciably but growth has been lackluster -- so output per-hour worked has actually been falling," Howard Archer, chief economic adviser to forecasters EY ITEM Club, told AFP on Tuesday.

"There may be an element of some companies taking on workers recently out of concern that with the labor market pretty tight and Brexit occurring, they may be unable to get the quality of workers they need in the future."

Archer added that "while earnings growth has been rising over the past year, it still remains much cheaper and less risky in a highly uncertain environment to take on labor rather than invest. 

"It is also much easier to reverse the taking-on of extra workers than pulling the plug on an investment project if the situation deteriorates," he said. 

WHERE IS THE UK ECONOMY OVERALL? 

Analysis of the health of Britain's economy can change quickly. Last week, experts reckoned on the country heading for recession this year even before Brexit, amid a global slowdown.

However the outlook has changed for some after official data Monday showed that UK economic growth grew by a better-than-expected 0.3 percent in July. Market experts still expect a severe downturn in the event of a chaotic EU departure.

"The UK economy remains in a strong position, defying calls for a recession," Chris Beauchamp, chief market analyst at IG, said following the gross domestic product (GDP) update and after the latest "solid, if unspectacular" jobs data.

WHAT ABOUT THE WEAK POUND'S IMPACY? 

The pound, seen as a better indicator of the UK's economic health than the London stock market which is loaded with multinationals, continues to suffer Brexit-fueled volatility.

Sterling last week slid below $1.20 for the first time in nearly three years -- reaching the lowest level since 1985 except for a 2016 "flash crash".

One of the biggest consequences of a weak pound has been to push up import costs, which in turn has contributed to higher UK inflation.

But while the Bank of England would ordinarily look to hike interest rates to put a lid on rising inflation, Brexit uncertainty has caused it to sit tight. Its key lending rate stands at just 0.75 percent.

Supermarkets have meanwhile sought to avoid passing on their higher costs to consumers owing to strong price-competition across the sector.

But small businesses are finding it harder to shield themselves, while Britons heading abroad are facing costlier holidays.

DEAL OR NO-DEAL? 

While Britain may avoid falling into recession should it reach an exit deal with the European Union, experts predict a dramatic slowdown in the event of a no-deal.

The Bank of England's latest assessment is for a slide in British GDP of 5.5 percent following a no-deal Brexit.

Unemployment would meanwhile surge to 7.0 percent and the annual inflation rate soar to 5.25 percent from a current 2.1 percent.

source: news.abs-cbn.com

Canada job numbers higher on cannabis boost

OTTAWA, Canada - Canada's pot legalization helped to significantly boost job numbers in November and push the unemployment rate down 0.2 percentage points to 5.6 percent -- the lowest level since 1976, the government statistical agency said on Friday.

In total, 94,000 jobs were added in the month. Gains were spread throughout most of the country, but led by Quebec and Alberta. Only the 4 eastern Maritimes provinces saw no changes, according to Statistics Canada.

It said the number of people employed in cannabis-related jobs -- including bud trimming -- in November rose 266 percent to 10,400, against the same period a year earlier.

Recreational-use cannabis was legalized on Oct. 17, creating an entirely new industry.

More than half of these jobs were in Ontario province, which has the largest concentration of licensed producers.

Pot workers were also paid slightly more than the national average salary, Can$29.58 (US$19.43) versus Can$27.03.

Overall, more people worked in the month in professional, scientific and technical services, which employed an additional 26,000 people; as well as in health care and social assistance; construction; business, building and other support services; transportation and warehousing; and agriculture. 

At the same time, fewer people were employed in information, culture, and recreation jobs.

The private sector increased hiring in the month, while there was little change in the public sector or in the number of self-employed individuals.

Employment increased for both core-aged women and men (aged 25 to 54), as well as for older Canadians aged 55 and over.

source: news.abs-cbn.com

U.S. durable goods data points to pickup in business spending

WASHINGTON - New orders for key U.S.-made capital goods rose less than expected in March, but a second straight monthly increase in shipments suggested business investment accelerated in the first quarter amid a recovering energy sector.

While other data on Thursday showed a bigger-than-expected increase in first-time applications for unemployment benefits last week, the trend remained consistent with tightening labor market conditions.

The Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.2 percent last month after gaining 0.1 percent in February.

Shipments of these so-called core capital goods rose 0.4 percent after jumping 1.1 percent in February. Core capital goods shipments are used to calculate equipment spending in the government's gross domestic product measurement.

Economists had forecast core capital goods orders rising 0.5 percent last month. March's modest increase suggests a loss of momentum in the manufacturing sector after recent strong growth.

Manufacturing, which accounts for about 12 percent of the U.S. economy, is being underpinned by the energy sector revival.

Energy services firm Baker Hughes said last Friday that U.S. oil rigs totaled 688 in the week ending April 21, the most in two years. U.S. drillers have added oil rigs for 14 straight weeks and shale production in May was set for its biggest monthly increase in more than two years.

Business spending on equipment is expected to have accelerated from the fourth-quarter's annualized 1.9 percent growth pace and will likely be one of the few bright spots when the government publishes its advance first-quarter GDP estimate on Friday.

The Atlanta Federal Reserve is forecasting GDP increasing at a 0.5 percent rate in the first quarter, a sharp slowdown from the fourth-quarter's 2.1 percent pace. With the labor market near full employment, the anticipated slowdown in growth likely understates the health of the economy.

TIGHTENING JOBS MARKET

In a separate report on Thursday, the Labor Department said initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 257,000 for the week ended April 22.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 112 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller.

Economists had forecast first-time applications for jobless benefits rising to 245,000 last week. Claims, however, tend to be volatile around this time of the year because of the different timings of spring and Easter holidays.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 500 to 242,250 last week, the lowest level since February.

U.S. financial markets were little moved by the data.

Manufacturing could get a lift from President Donald Trump's proposed tax plan, announced on Wednesday, that includes cutting the corporate income tax rate to 15 percent from 35 percent.

Last month, orders for machinery slipped 0.2 percent, but shipments increased 0.7 percent. Orders for primary metals rose in March as did shipments of these products. Electrical equipment, appliances and components orders and shipments also increased last month.

There were, however, declines in orders for fabricated metal products and computers and electronic products.

Last month, overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, increased 0.7 percent after surging 2.3 percent in February. Civilian aircraft orders increased 7.0 percent.

Orders for motor vehicles and parts fell 0.8 percent, declining for a second straight month.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

source: news.abs-cbn.com

White House forecasts stubbornly high unemployment

WASHINGTON - White House economists on Friday predicted that unemployment will fall only slightly by the end of the year, amid modest economic growth and a dangerously high budget deficit.

The Office of Management and Budget showed little in the way of optimism about the state of the world's largest economy, forecasting unemployment of 7.9 percent by year-end, compared with 8.2 percent today.

The White House unit also predicted that 2012 growth would come in around 2.6 percent, not fast enough to bring down painfully high levels of joblessness, which remain the biggest obstacle to a solid recovery and President Barack Obama's chances of re-election in November.

The 2012 budget deficit is expected to reach $1.21 trillion, around $116 billion less than first expected, but still astronomically high, at 7.8 percent of gross domestic product.

Amid rolling crises spilling over from Europe and twitchy consumers and investors at home, the US economy has struggled for four years to recover from the "Great Recession."

Earlier estimates had expected growth of around 2.7 percent this year, with unemployment of 8.9 percent.

Obama's allies in Congress seized on the latest figures as evidence of the need for Republicans to accept the president's plans to juice the economy.

"There is much more work to be done to bolster our recovery," said Congressman Chris Van Hollen. "It is more important than ever to pass the president's jobs package, which has been sitting before the House of Representatives since September."

Republican oppose the plan because it would raise taxes on those earning over $200,000 a year.

source: interaksyon.com

Spain slides back into recession in first quarter

MADRID - Spain's gross domestic product shrank by 0.3 percent in the first quarter after contracting at the same rate in the final three months of 2011, confirming a return to recession, according to final statistics published Thursday.

The figures confirm preliminary data issued in April by the National Statistics Institute (INE), underscoring the precarious state of the eurozone's fourth biggest economy, which is battling a record high 24.4 percent unemployment rate.

An INE statement said that weaker domestic demand, including household consumption and public spending, had undermined growth as Spain struggles with austerity measures aimed at cleaning up its finances.

Spanish exports and its tourism sector have not been able to make up the difference, owing to a generally weaker economic climate elsewhere in Europe.

Spanish growth had depended to a large extent on the construction sector, which went into a slump in 2008, and the country's last recession lasted until early 2010.

Spanish officials acknowledge that the economy is going through one of its toughest ever moments, but have voiced optimism for the future.

Economy Minister Luis de Guindos has estimated that gross domestic product will shrink by 1.7 percent this year, but forecasts slight growth of 0.2 percent in 2013.

The national foundation of savings banks, Funcas, is less optimistic, and estimates that the recession will last until the second half of 2013.

Analysts at Commerzbank expect Spain to be the only eurozone country still in recession next year, with a drop in GDP of 0.3 percent.

source: interaksyon.com

Spain's jobless rate climbs to a record in industrialized world

MADRID - Spain's jobless rate shot to 22.85 percent at the end of 2011, the highest in the industrialised world, as more than half of young people were out of work, official data showed Friday.

The number of unemployed burst through the five-million mark, surging 295,300 to 5.27 million in the last quarter of 2011, the National Statistics Institute report showed.

As a result, the jobless rate at the end of 2011 surged to a near 17-year record, rising from 21.52 percent the previous quarter, the National Statistics Institute report showed.

Even more dramatic, the jobless rate among those aged 16-24 climbed to 51.4 percent at the end of the year from 45.8 percent on September 30.

The figures are a grim portent for Spain, widely considered to be sliding in to a recession in 2012 with jobless numbers set to rise even further as the new right-leaning government slashes spending further.

source: interaksyon.com

A fallback for unemployed nurses

MANILA, Philippines — To ease the unemployment woes of nursing graduates, a Quezon City councilor has filed a resolution that will include entrepreneurial subjects in the nursing curriculum.

Fourth District Councilor Jessica Castelo Daza said her proposal was meant to provide a fallback for nurses in case they land jobs outside of their nursing courses.

Under Resolution 5381, the Quezon City government will have to address the ballooning problem of unemployment of new nursing graduates by urging the Commission on Higher Education (CHEd) to add entrepreneurial subjects in the course to help nursing graduates to venture into other fields in case of the unavailability of nursing jobs.

The never-ending story of what the nursing profession can offer to those who wanted to be successful in life is one of the reasons why the country produces an oversupply of nursing graduates who end up unemployed.

According to Daza, the majority of the nursing graduates fail to find employment in their preferred profession and finding the opportunity to have jobs related to their chosen career has become part of their efforts to survive after graduation.

It is a common knowledge, according to Daza, that nursing job opportunities in the country are scarce, hence, most of nursing graduates opted to work abroad as caregivers, dental assistants, nursing aides, or become part of the unemployment statistics.

Daza wants the city’s nursing graduates to be successful entrepreneurs but they will have to prepare for it while in the nursing schools.

There are more than 450 nursing schools in the country that produce hundreds of thousands of nursing graduates annually.

Most of the nursing graduates, even those who passed the board examinations, have remained unemployed due to the decreasing demand for the profession.

source: mb.com.ph

Obama readies rewards to keep US firms from outsourcing jobs

WASHINGTON - President Barack Obama, under pressure in an election year to boost the economy and reduce high unemployment, will unveil tax proposals aimed at encouraging U.S. firms to keep jobs at home, the White House said on Wednesday.

"In the coming weeks, the president will put forward new tax proposals to reward companies that choose to invest or bring back jobs to the United States, and to eliminate tax advantages for companies moving jobs overseas," the White House said in a statement.

Obama was hosting a forum with executives on Wednesday on "Insourcing American Jobs" at which he will call on companies to invest and hire in the United States instead of moving jobs abroad.

The emphasis on keeping U.S. jobs at home is in line with a populist economic message championed by Obama that could play well with unionized workers, whose support the Democratic president will need to win re-election in November.

The practice of U.S. companies moving jobs to foreign countries such as India and China, where labor is cheaper, is a source of concern to many U.S. workers and resonates strongly in Midwest industrial states such as Ohio and Michigan that are expected to be battlegrounds in this year's election.

At the business forum, Obama will urge companies investing overseas "to take this opportunity to get the American people back to work," the White House said.

"That's how we'll rebuild an economy where hard work pays off and responsibility is rewarded - and a nation where those values live on," Obama will say, according to an excerpt from his prepared remarks.

For the past several years, Obama has proposed closing what he calls tax loopholes used by multinational firms, including those restricting the use of foreign tax credits, and preventing companies from deferring taxes on income earned abroad.

Although these ideas have the support of some Democrats, they generally landed with a thump in Congress, where most lawmakers want to tackle reforms to the voluminous U.S. tax code in one fell swoop.

The Obama administration had been drafting revisions to just the corporate side of the tax code but largely abandoned the effort over the past year after complaints that the tax code needs a massive overhaul and that many businesses file as individuals. — Reuters

source:gmanetwork.com

US jobless rate falls to 8.5% in big job surge

WASHINGTON - The US unemployment rate dropped to 8.5 percent in December, the lowest level in nearly three years, as hiring surged more than expected, government data showed Friday.

The Labor Department report confirmed an improving trend in the ailing job market. The department noted that the number of unemployed as well as the jobless rate "continued to trend down in December."

The economy added 200,000 nonfarm jobs last month, the department said, sharply higher than the average analyst estimate of 150,000.

The job gains occurred in transportation and warehousing, retail trade, manufacturing, health care, and mining, the department said.

Most analysts had expected the jobless rate to tick higher to 8.7 percent.

Instead, at 8.5 percent, the jobless rate was the lowest since February 2009, when the United States was battling the worst recession in decades. — Agence France Presse

source:gmanetwork.com