hvactec
VIP Member
From 10/03/11
There was a small glimmer of hope on the perpetually dismal jobs front last Thursday. Initial jobless claims came in well below expectations at 391,000, compared to 428,000 the week before, and fell to levels not seen since April.
But there was a caveat. The Labor Department cited "technical issues and seasonal adjustment volatility, rather than economic factors" as the reason for the drop.
"While the market responded well to the Initial Claims print, the Labor Dept caveat shouldn't be ignored," said Peter Boockvar, equity strategist at Miller Tabak, last week. "Unfortunately though we'll have to wait until next Thursday to see whether a new positive trend is being established or today was a technical anomaly."
Perhaps the bigger number to watch this week is the September jobs number on Friday after the August report when no net jobs were created during the month.
Currently the official unemployment rate in the United States is 9.1%. But when you factor in the underemployed — those who have dropped out of the jobs search or who are working part-time but really desire full-time work — that 9.1% figures actually ranges anywhere from 15% to more than 20% depending who you ask.
Mort Zuckerman, U.S. News and World Report chairman and editor-in-chief, figures the real unemployment rate to be around 19% and fears that in the months to come job creation could fall into negative territory. He says it is the lack of demand and lack confidence in the U.S. government and consumer that is preventing employers from hiring.
"Employers are basically focusing on their bottom line rather than on their top line and that means they are going to cut costs, because their top line isn't growing any more," Zuckerman tells The Daily Ticker's Aaron Task. Adding fuel to this fire is the fact that "there are many jobs for which we have a mismatch of skills and job needs" particularly in the areas of science, technology, engineering and math (STEM).
Read more, Video Mort Zuckerman: U.S. Jobs to Be
There was a small glimmer of hope on the perpetually dismal jobs front last Thursday. Initial jobless claims came in well below expectations at 391,000, compared to 428,000 the week before, and fell to levels not seen since April.
But there was a caveat. The Labor Department cited "technical issues and seasonal adjustment volatility, rather than economic factors" as the reason for the drop.
"While the market responded well to the Initial Claims print, the Labor Dept caveat shouldn't be ignored," said Peter Boockvar, equity strategist at Miller Tabak, last week. "Unfortunately though we'll have to wait until next Thursday to see whether a new positive trend is being established or today was a technical anomaly."
Perhaps the bigger number to watch this week is the September jobs number on Friday after the August report when no net jobs were created during the month.
Currently the official unemployment rate in the United States is 9.1%. But when you factor in the underemployed — those who have dropped out of the jobs search or who are working part-time but really desire full-time work — that 9.1% figures actually ranges anywhere from 15% to more than 20% depending who you ask.
Mort Zuckerman, U.S. News and World Report chairman and editor-in-chief, figures the real unemployment rate to be around 19% and fears that in the months to come job creation could fall into negative territory. He says it is the lack of demand and lack confidence in the U.S. government and consumer that is preventing employers from hiring.
"Employers are basically focusing on their bottom line rather than on their top line and that means they are going to cut costs, because their top line isn't growing any more," Zuckerman tells The Daily Ticker's Aaron Task. Adding fuel to this fire is the fact that "there are many jobs for which we have a mismatch of skills and job needs" particularly in the areas of science, technology, engineering and math (STEM).
Read more, Video Mort Zuckerman: U.S. Jobs to Be
