Yellen: Unemployment Rate 'Less Rosy' When You Count Part-Time, Discouraged Workers

[Vigilante]

Oh my, the truth slowly slapping the Obuma administration!

CNS News ^
Federal Reserve Chair Janet Yellen said Tuesday at a Senate Banking Committee hearing that the U-6 unemployment rate--which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force--“definitely shows a less rosy picture” of employment in the country. People "marginally attached" to the labor force "are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for one work sometime in the past 12 months."

In January, according to the Bureau of Labor Statistics, the "U-3" unemployment rate, which is the one generally reported, was 5.7 percent. U-6 was 11.3 percent.....

 

[Mr. H.]

The unemployment rate should be characterized by what it is - the not employed rate. What's that, more like 12.5%?

 

[pinqy]

The unemployment rate should be characterized by what it is - the not employed rate. What's that, more like 12.5%?

37.1%. Of course most of those not employed don't want a job.

 

[Roadrunner]

Oh my, the truth slowly slapping the Obuma administration!

CNS News ^
Federal Reserve Chair Janet Yellen said Tuesday at a Senate Banking Committee hearing that the U-6 unemployment rate--which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force--“definitely shows a less rosy picture” of employment in the country. People "marginally attached" to the labor force "are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for one work sometime in the past 12 months."

In January, according to the Bureau of Labor Statistics, the "U-3" unemployment rate, which is the one generally reported, was 5.7 percent. U-6 was 11.3 percent.....

One more reason why we need a NO SHIT SHERLOCK forum.

 

[Roadrunner]

The unemployment rate should be characterized by what it is - the not employed rate. What's that, more like 12.5%?

37.1%. Of course most of those not employed don't want a job.

Did you never NOT have a job, when you WANTED one?

I sure didn't.

 

[pinqy]

The unemployment rate should be characterized by what it is - the not employed rate. What's that, more like 12.5%?

37.1%. Of course most of those not employed don't want a job.

Did you never NOT have a job, when you WANTED one?

I sure didn't.

hmmm the double negatives are confusing me. Are you saying that there has never been a time where you wanted a job but did not have one, or that you have wanted a job but not had one?

In either case, what does that have to do with my post?

 

[waltky]

Mebbe the Fed gonna stay the course on interest rates...

Yellen: Fed should 'proceed cautiously'
Tue, 29 Mar 2016 - US Federal Reserve chair Janet Yellen says global risks mean that the Fed should "proceed cautiously" before raising interest rates.

She said global risks were not expected to have a deep impact on the US, but caution was still appropriate. Global developments and risks had led policymakers to project a slower path of rate rises than initially expected in December, Ms Yellen said. US markets rose during her speech at the Economic Club of New York. Her tone was similar to the Fed's statement in mid-March, when the central bank made no change to rates and guided expectations towards a slower pace of increases after December's increase.

Ms Yellen repeated her message from earlier pubic speeches that volatile oil prices and China's slowing growth, along with how soon inflation would reach the Fed's 2% goal, were key factors guiding the Fed towards taking a gradual approach on raising rates. Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said her caution was not surprising, but stood in contrast to support for rate rises from other Fed speakers in recent days. He added: "On balance, [Yellen's] comments do not sound consistent with a looming rate hike in April and leave considerable doubt about whether rates will rise in June. Earlier on Tuesday the head of the San Francisco Federal Reserve, John Williams, said the US economy was doing "quite well".

As she has done in past speeches, Ms Yellen said the market should be open to the possibility of news that boosts confidence. "We should not ignore the welcome possibility that economic conditions could turn out to be more favourable than we now expect," she said. The audience in New York laughed when Ms Yellen was asked how long the Fed expected to take to reach "normal" interest rates and whether she felt the market had failed to understand the bank's plan. The Fed chief has been trying to reassure markets of its "gradual" plan since taking action in December. Following Ms Yellen's speech, Wall Street climbed sharply . The S&P 500 rose 0.8% and the Nasdaq index jumped 1.5%, although the Dow Jones Industrial Average added just 0.1%.

Unconventional tools

Although the focus of her speech was on interest rates, Ms Yellen did address the other tools the Fed has at its disposal if the US economy was to suffer a downturn. These unconventional tools - including asset purchases, forward guidance and negative interest rates, which have been used in Europe - have been criticised for helping banks and not stimulating economies. Ms Yellen defended the use of these tools, saying they helped prevent the recession from becoming worse. "They have been effective policy, they have made a difference and inflation may have been lower and unemployment higher - by noticeable amounts - had we not employed those policies," she said.

http://www.bbc.co.uk/news/business-35921558

 

[waltky]

Fed stymied as recovery starts to unravel...

Fed policymakers divided over whether to raise rates soon: minutes
Wed Aug 17, 2016: WASHINGTON - Federal Reserve policymakers agree that more economic data is needed before raising interest rates, although some see a need to tighten policy soon, according to the minutes from the U.S. central bank's July 26-27 policy meeting.

The minutes, which were released on Wednesday, showed that members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook and labor market. "Some ... members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation," the Fed said in the minutes. Several Fed policymakers, however, said a slowdown in the future pace of hiring would argue against a near-term hike, and members of the FOMC said they wanted to "leave their policy options open."

The U.S. dollar strengthened after the release of the minutes, while U.S. stocks and prices of shorter-dated U.S. Treasuries pared losses. Fed funds futures showed little change in bets on when the Fed will lift rates, with investors still expecting the next rate increase to likely come in December. "The minutes contained more concrete indications that a consensus to raise rates is slowly building," said Brian Dolan, head market strategist at Drivewealth in New Jersey. The Fed raised rates in December for the first time in nearly a decade, but it has since kept rates unchanged amid financial market volatility, a global growth slowdown and tame U.S. inflation. Investors had raised bets earlier this week for a rate increase this year after two Fed policymakers said the economic stars now appear to be aligning despite weak U.S. growth in the first half of 2016.

Seventeen Fed policymakers participated in the July meeting, 10 of whom had a vote. Of the broader group of policymakers, several expressed concern that low interest rates could hurt financial stability. The minutes came a day after New York Fed President William Dudley said "it's possible" to raise rates at the Sept. 20-21 policy meeting and Atlanta Fed President Dennis Lockhart said a hike next month is in play. The Fed also has policy meetings scheduled in early November and mid-December. Economists see the December meeting as the most likely time for a rate increase since it follows the U.S. presidential election, according to a Reuters poll last week. Investors will now focus on next week's annual meeting of central bankers in Jackson Hole, Wyoming, a venue the Fed often uses to telegraph policy plans.

Fed policymakers divided over whether to raise rates soon: minutes

See also:

Cisco to cut 5,500 jobs in shift away from switches, routers
Wed Aug 17, 2016 - Cisco Systems Inc said it would lay off up to 5,500 employees, or nearly 7 percent of its workforce, as the world's largest networking gear maker shifts focus to areas such as security, Internet of Things and cloud.

Cisco's traditional business of switches and routers has been struggling with sluggish demand from telecom carriers and enterprise customers and intense competition from companies such as Huawei and Juniper Networks Inc. Revenue in the company's traditional routers business fell 6 percent in the fourth-quarter ended July 30, while switching unit revenue was up 2 percent. Chief Executive Chuck Robbins, who took over from John Chambers in July last year, has been steering the company toward more software and services businesses. Revenue in Cisco's security business, which offers firewall protection as well as intrusion detection and prevention systems, rose 16 percent.

Cisco, which is also betting on acquisitions to bolster its faster-growing businesses, has made 10 acquisitions since Robbins took the helm, according to FactSet StreetAccount data. These deals range from internet-of-things startup Jasper Technologies to cloud security provider CloudLock. Cisco's net profit rose to $2.81 billion, or 56 cents per share, in the fourth quarter, from $2.32 billion, or 45 cents per share, a year earlier. Excluding items, the company earned 63 cents per share. Revenue fell 1.6 percent to $12.64 billion.

Analysts on average had expected a profit of 60 cents and revenue of $12.58 billion, according to Thomson Reuters I/B/E/S. Cisco, which expects to start laying off employees from the first quarter, said it will take a charge of about $325 million to $400 million in the quarter. On the whole, the company expects a pre-tax charge of $700 million. Technology news site CRN, citing sources close to the company, reported on Tuesday that Cisco planned to lay off about 14,000 employees, or nearly 20 percent of its workforce. Cisco's shares were down 1.2 percent at $30.38 in after-market trading on Wednesday. The shares had gained 13.2 percent this year through Wednesday's close, compared with the 6.8 percent increase in the broader S&P 500 index.

Cisco to cut 5,500 jobs in shift away from switches, routers

Related:

Target says low demand for Apple products hurts electronics sales
Wed Aug 17, 2016 - Target Corp reported a drop in demand for Apple Inc's products that hurt the retail chain's electronics sales in the second quarter, but said it is working with the iPhone maker to capitalize on new product launches during the second half.

Earlier on Wednesday, Target cut its fiscal-year profit outlook after quarterly sales fell more than expected due to lower demand for electronics and a weak start to a revamp of its grocery business. The company's shares closed down 6.4 percent at $70.63 after falling as much as 7.4 percent. Chief Executive Brian Cornell said customer visits declined across product categories during the quarter but electronics sales fell by a double-digit percentage rate and accounted for about two-thirds of the overall decline in sales at stores open at least a year. About a third of the decrease in electronics sales stemmed from reduced demand for Apple products, which were down more than 20 percent. In April, Apple reported its first-ever decline in iPhone sales and its first revenue drop in 13 years due to a saturated market for smartphones.

Cornell said one of the first tasks for newly appointed Chief Merchandising Officer Mark Tritton is to spend time with Apple to make sure "we're putting the right plans together for the back half of the year, that we're ready to capitalize on their new innovation that they will be bringing to the market." Apple's long-awaited iPhone 7 is expected to be launched next month and retailers hope it will create enthusiasm among consumers and boost phone sales. For the past several quarters Best Buy Inc, the largest electronics retailer in the United States, has complained about the lack of innovative new products to excite consumers. Apple did not immediately respond to a request for comment.

SIGNIFICANT SLOWDOWN

Target's sales declined from the previous quarter as well as from a year earlier, indicating a "significant slowdown in trade," said Neil Saunders, chief executive officer of research firm Conlumino. Sales at stores open at least one year fell 1.1 percent in the second quarter ended on July 30, which Saunders said was the first decline in two years. Target said it expected same-store sales to be flat to down 2 percent in the second half of the year. The company's sales have suffered as shoppers increasingly use online retailers such as Amazon.com Inc and focus their spending on big-ticket items like cars and home renovations rather than small discretionary purchases. The company lowered its full-year profit forecast to between $4.80 and $5.20 per share from a prior range of $5.20 to $5.40.

Target, which has been reorganizing its grocery business by adding more organic and fresh food, said those early efforts were disappointing. The business had a "small" decline in comparable sales and was pressured by price deflation for meat, milk and other food items. The company gained market share in the apparel and home improvement categories, Cornell said. Net income attributable to the company fell nearly 10 percent to $680 million in the second quarter. Earnings before special items exceeded analysts' estimates. Net sales fell 7.2 percent to $16.17 billion, lagging Wall Street expectations of $16.18 billion. Digital sales increased 16 percent, a deceleration from previous quarters, and accounted for 3.3 percent of the company's total.

Target says low demand for Apple products hurts electronics sales