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Inside views on the jobs market

Unemployment jumps, but is the economy finding its floor?

April 3, 2009

Markets might have rallied on relief that the jobs data this morning wasn’t worse than expected, but there’s no getting away from the fact that an 8.5 percent unemployment rate is an ugly number. The March jobs figures showed U.S. employers slashed 663,000 jobs in March. The unemployment rate was the highest since 1983. Here is some reaction from the market:

ROBERT MACINTOSH, CHIEF ECONOMIST, EATON VANCE CORP, BOSTON:
“It’s telling you we’re in a deep recession and it’s still going to be a while to get out of it, especially on the employment side of things. But you have to keep in mind that this is a lagging indicator, we’re going to get bad employment numbers, along with the employment rate, even if the economy is starting to turn.”

PIERRE ELLIS, SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK:
“The report does not contradict the growing notion that the economy is finding a bottom. Employment will not turn on a dime and certainly there’s no sign of strength, but at least it’s not getting worse and worse and worse.”

PETER KENNY, MANAGING DIRECTOR, KNIGHT EQUITY MARKETS, JERSEY CITY, NEW JERSEY:
“It gives the market a sense that we dodged a bullet in the very, very near term. It’s positive in that it wasn’t a blowout number of more than 750,000. All the indexes are higher because the market is breathing a sigh of relief because it wasn’t a blowout of market psychology. It indicates a slackening of the rate of decline and leaves the bear market rally intact.”

Do you agree the economy has found its floor? If you’re an employer, have you done cutting jobs? If you’re employed, do you feel secure? If you’re unemployed, are you seeing any improvement in the jobs market? Let us know in the comments below.

Comments

No one can accuse Dominique Strauss-Kahn of mincing around the issue. The head of the IMF says of the possible consequences of the economic crisis: “All this will affect dramatically unemployment and beyond unemployment for many countries it will be at the roots of social unrest, some threat to democracy, and may be for some cases it can also end in war.”
He warned that stimulus will “melt in the sun as snow” unless the banking sector is reformed.

Via Stock Research Portal (http://www.stockresearchportal.com)

 

I have not seen any change in the job market, not since February, in fact, it has gotten worse since then. I do not believe it will improve significantly until small businesses get $ from the government for jobs and manufacturing jobs in large quantities are generated(hopefully green technology). This may be a long and protracted recession, although I would really like to think otherwise and I hope I am proven wrong.

Posted by Rebecca | Report as abusive
 

Greatest stock rally in history? Time for a little perspective, says the Stock Research Portal. “The global stock index is still down more than 12% in Q1 2009 after losing 22.7% in Q4 2008.”Conclusion: “Always consider changes (up or down) in the context of absolutes.”

Via Stock Research Portal

I don’t think we’re at a floor yet

 

Any one being turned down because of a background check of their credit? I have had this happen 3 times .. honest… I dont know how to make it better without a job.. and… If I file bankruptsy I am eliminated all together… I am a bank consultant… Alot of my friends are having the same problem.. We have had job losses most of last 2 years… Regular jobs were not hiring either.. No one espected it to last this long.. If I had had a forclosure or short sale I would be sliminated too… What is going on ????

Posted by deb | Report as abusive
 

It will be a great day in America when the news of massive job loss is no longer. Hopefully this administration will have the ksa’s to get this nation back on track. And for those in need of employment, I have a website for you…The site is http://www.freegovtjobs.com. The site provides free access to vacant government jobs across the country.

 

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