People get confused with all these numbers.
It was 171,000 people who lost jobs in October, the 125 is a 125% increase
from the layoffs in September.
The 125% increase in layoffs from October was reported on CNN Headline News and
cbsmarketwatch.com. They said the job cuts doubled in October from 90,000 in
September, to 171,000 in October.
Here is part of the actual article:
Layoffs more than double in October
WASHINGTON (CBS.MW) -- Layoff announcements from U.S. companies more than doubled in
October to 171,874, the highest in a year, according to the monthly tally released Tuesday by
outplacement firm Challenger Gray & Christmas.
October is typically the largest months for layoff notices, as companies slash costs at the end of
the fiscal year. The Challenger survey is not adjusted for seasonal factors.
Layoff announcements had fallen for three months in a row before October's 125 percent increase.
Layoffs hit bottom in June with 59,715.
"While perhaps shocking to some, the October spike follows a trend of heavy year-end downsizing
that has occurred since we began tracking job cuts in 1993," said John Challenger, the CEO of the
company that bears his name.
"With factors like technology, outsourcing and consolidation working against job creation, any job
market rebound we see in the near future will be relatively small," Challenger said.
Here is the link, but it is expired now and you have to be a member to view the article now.
http://cbs.marketwatch.com/news/story.asp?guid=%7B587E1DC6%2D895E%2D472F%2D8F42%2DC3B1BB851495%7D&siteid=mktw
These numbers were not counted by the Bush administration. When they say 300,000 jobs were
created, they are correct. But they do not offset all the layoffs from the last 3 months. To be
acurate they should have said the economy created 300,000 jobs, but if you count the October
layoffs the economy lost 54,000 jobs.
In the above article it says the layoffs doubled from September to 171,000, half of 171 is 85, that
means the economy lost 85,000 jobs in September.
Here is an article with the august numbers:
CBS News | Economy Loses 93,000 Jobs | September 8, 2003
Economy Loses 93,000 Jobs in August
The U.S. economy lost payroll jobs in August for the seventh month in a row even as the
unemployment rate dipped to 6.1 percent, the Labor Department reported Friday.
Non-farm payrolls shrank by 93,000, bringing the total job losses to 595,000 since January.
The decrease in payrolls was the largest since March.
Economists had expected a small gain in payrolls of about 19,000 and had forecast that the
jobless rate would hold steady at 6.2 percent.
The economy needs to create about 150,000 jobs a month just to absorb the population growth.
http://www.cbsnews.com/stories/2003/09/05/national/main571748.shtmlThe economy needs to create 450,000 every 3 months just to absorb the population growth. Even
If the Bush economy did create 300,000 more jobs than it lost, they still come up 150,000 jobs
short of what they need just to break even. On top of that their own economic team estimated the
economy would create 306,000 jobs a month after the july tax cuts kicked in.
So if you take 306,000 x 3 you get 918,000 jobs, if they created 300,000 jobs, they are
612,000 jobs short just for the last 3 months.
A couple people think the economy created a net 300,000 jobs, this is wrong.
Payroll jobs increased by 126,000 in October. While far preferable to further job losses, those
job gains fall short of the 150,000 jobs a month necessary to prevent the slack in the labor market
from worsening.
Payroll jobs increased by 126,000 in October, but we had 171,000 new layoffs in October too. They
did not count the 171,000 layoffs.
The reason unemployment dropped from 6.1 to 6.0 is 2.3 million people gave up on finding a job and
created a missing labor force of 2.3 million.
Even with job gains of 306,000 a month, as promised by the Administration early this year, it would
take more than four years to close the jobs gap that two and a half years of job losses have
created.
http://www.jobwatch.org/--------------------
For many jobseekers, the employment outlook still isn't rosy.
The new jobs added last month mostly were in lower-paying industries such as retail and
temporary employment firms. Average weekly earnings in those sectors are $366 and $318
respectively, said John A. Challenger, chief executive officer of Challenger, Gray and Christmas,
an employment research and recruiting firm. The national average is $521 per week.
Also, 1.4 million workers were only able to find part-time work, up 27 percent from a year ago.
To make ends meet, 7.5 million Americans worked two or more jobs last month, up from 7.3 million
a year ago.
One of four people out of work were unemployed for 27 weeks or longer last month. Nearly half
of those were white-collar workers in management, professional, sales and office jobs, Challenger
said.
The hard-hit manufacturing sector continued to shed jobs in October, losing 24,000. It was the
37th consecutive month of declines, though the pace has slowed considerably.
For blacks, the jobless rate climbed three-tenths of a percentage point last month to 11.5 percent.
The rate fell for whites, Hispanics, Asians, men and women.
"It's quite alarming that the Bush administration is celebrating ... a very, very minuscule decrease
in the overall unemployment rate while African-Americans are still standing in the unemployment
line," said Rep. Elijah Cummings, D-Md., chairman of the Congressional Black Caucus.
"I see nothing to celebrate in these numbers," he said.
http://abcnews.go.com/wire/Business/ap20031107_1425.htmlI have not seen one article that claims the 300,000 is a net job gain, they all say 300,000 new
jobs created. But none of them say it is a net gain over the jobs lost over the same period. If
someone has an article saying the 300,000 is a net gain, please post it.
Even if it is true, the Bush team predicted 306,000 a month after the july tax cuts kicked in. I
also read somewhere that the economy has lost net jobs this year. I can not remember where I
read it, but I remember reading the economy has lost a net 600,000 to 900,000 jobs this year.
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