Archive for the ‘unemployment’ Category

Congressional Budget Office: Unemployment 10.5 Next Year

May 21, 2009

The Congressional Budget Office chief told Congress Thursday that rising unemployment likely will continue into next year.
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By Mosheh Oinounou
FOXNews.com

While the economy will begin growing again by the end of 2009, the unemployment rate will continue to expand into next year, the Congressional Budget Office reported Thursday.

The CBO projects Americans will continues to lose jobs through mid-2010, with the umemployment rate peaking at 10.5 percent next year, CBO Director Doug Elmendorf said in testimony before the House Budget Committee.

The CBO’s March assessment initially predicted unemployment would peak at 9.5 percent.

“We think it will be a slow, a painfully slow recovery,” Elmendorf told the committee, citing the ongoing crises in the housing and credit markets.

He added that the financial system is still in a “weakened state” even though it “has crawled back from the edge of the abyss.”

“All of those factors will lead to a tepid recovery, somewhat more tepid than we thought and assessed the conditions a few months ago,” Elmendorf noted.

He said employment numbers are often a lagging indicator of economic recovery, noting a number of positive trends including stabilizing manufacturing output, signs of life when it comes to consumer spending and confidence and that the decline in housing construction may be close to bottoming out.

The current unemployment rate is 8.9 percent. The Labor Department on Thursday reported 631,000 new jobless claims last week. 

The Federal Reserve said Wednesday that the unemployment rate could rise to 9.6 percent this year and remain elevated until 2011. Some private economists told The Associated Press they expect the rate to reach 10 percent by the end of this year.

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May 21 (Bloomberg) — More Americans than forecast filed claims for unemployment insurance last week, and the total number of workers receiving benefits rose to a record, signs the job market continues to weaken even as the economic slump eases.

Initial jobless claims fell by 12,000 to 631,000 in the week ended May 16, from a revised 643,000 the prior week that was higher than initially estimated, the Labor Department said today in Washington. The total number of people collecting benefits rose to 6.66 million, a record reading for a 16th straight week, and a sign companies are still not hiring.

Job losses are likely to continue after Chrysler LLC filed for bankruptcy and General Motors Corp. may follow suit and terminate 1,100 U.S. dealers. The auto slump threatens to slow any recovery from the deepest recession in half a century and keep pushing unemployment higher.

“We expect upward pressure on claims stemming from auto- related layoffs,” said Maxwell Clarke, chief U.S. economist at IDEAglobal in New York, who acurately forecast the initial claims number. “The labor market will remain weak, with gradual improvement on the horizon.”

Stock index futures were lower and Treasuries were little changed after the report. The contract on the Standard & Poor’s 500 Index fell 0.7 percent to 893.2 as of 8:38 a.m. in New York. The benchmark 10-year note yielded 3.18 percent, down 1 basis point from yesterday.

Economists surveyed by Bloomberg had forecast claims would drop to 625,000 from the 637,000 initially reported for the prior week, according to median of 42 estimates. Projections ranged from 585,000 to 675,000.

The four-week moving average of initial claims, a less volatile measure, decreased to 628,500 from 632,000.

Joblessness Climbs

Today’s Labor report showed the unemployment rate among people eligible for benefits, which tends to track the jobless rate, climbed to 5 percent in the week ended May 9, the highest level since December 1982, from 4.9 percent. These data are reported with a one-week lag.

Thirty-four states and territories reported an increase in new claims for the week ended May 9, while 19 reported a decrease.

The ‘majority’ of last week’s decrease in claims was in states that reported a jump in auto-related filings the prior week, a spokesman for the Labor Department said.

Read the rest:
http://www.bloomberg.com/apps/news?pi
d=20601087&sid=a56LXUHX28Ig&refer=home

Recession, Obama’s Stimulus Opens Dangerous War: Trade war

May 15, 2009

Is this what the first trade war of the global economic crisis looks like?

Ordered by Congress to “buy American” when spending money from the $787 billion stimulus package, the town of Peru, Ind., stunned its Canadian supplier by rejecting sewage pumps made outside of Toronto. After a Navy official spotted Canadian pipe fittings in a construction project at Camp Pendleton, Calif., they were hauled out of the ground and replaced with American versions. In recent weeks, other Canadian manufacturers doing business with U.S. state and local governments say they have been besieged with requests to sign affidavits pledging that they will only supply materials made in the USA.

 

By Anthony Faiola and Lori Montgomery
Washington Post Staff Writers

 

Outrage spread in Canada, with the Toronto Star last week bemoaning “a plague of protectionist measures in the U.S.” and Canadian companies openly fretting about having to shift jobs to the United States to meet made-in-the-USA requirements. This week, the Canadians fired back. A number of Ontario towns, with a collective population of nearly 500,000, retaliated with measures effectively barring U.S. companies from their municipal contracts — the first shot in a larger campaign that could shut U.S. companies out of billions of dollars worth of Canadian projects.

This is not your father’s trade war, a tit-for-tat over champagne or cheese. With countries worldwide desperately trying to keep and create jobs in the midst of a global recession, the spat between the United States and its normally friendly northern neighbor underscores what is emerging as the biggest threat to open commerce during the economic crisis.

Read the rest from the Washington Post:
http://www.washingtonpost.com/wp-dyn/co
ntent/article/2009/05/14/AR2009051404241.html

Stimulus Checks Go To Dead People

May 15, 2009

This week, thousands of people are getting stimulus checks in the mail. The problem is that a lot of them are dead. A Long Island woman was shocked when she checked the mail and received a letter from the U.S. Treasury — but it wasn’t for her.

WATCH VIDEO:
http://www.myfoxny.com/dpp/your_money/c
onsumer/090514_Dead_People_Get_S
timulus_ChecksAntoniette

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Santopadre of Valley Stream was expecting a $250 stimulus check. But when her son finally opened it, they saw that the check was made out to her father, Romolo Romonini, who died in Italy 34 years ago. He’d been a U.S. citizen when he left for Italy in 1933, but only returned to the United Stated for a seven-month visit in 1969.

The Santopadres are not alone. The Social Security Administration, which sent out 52 million checks, says that some of those checks mistakenly went to dead people because the agency had no record of their death. That amounts to between 8,000 and 10,000 checks for millions of dollars.

The feds blame a rushed schedule, because all the checks have to be cut by June. The strange this is, some of the checks were made out to people — like Romonini — who were never even part of the Social Security system.

Fox News New York

New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

May 14, 2009

Obama administration: Thanks for the “bailout.”

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From the Associated Press

New jobless claims rose more than expected last week due partly to an increase in layoffs by the automobile industry, while the number of people continuing to receive unemployment benefits set a record for the 15th straight week. 

The Labor Department said Thursday the number of new claims rose to a seasonally adjusted 637,000, from a revised 605,000 the previous week. That’s above analysts’ expectations of 610,000. 

The increase comes after initial claims dropped in four of the previous five weeks, which raised hopes that the wave of layoffs announced earlier this year has crested and that the recession was nearing a bottom. 

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers. 

New jobless claims rose more than expected last week due partly to an increase in layoffs by the automobile industry, while the number of people continuing to receive unemployment benefits set a record for the 15th straight week. 

The Labor Department said Thursday the number of new claims rose to a seasonally adjusted 637,000, from a revised 605,000 the previous week. That’s above analysts’ expectations of 610,000. 

The increase comes after initial claims dropped in four of the previous five weeks, which raised hopes that the wave of layoffs announced earlier this year has crested and that the recession was nearing a bottom. 

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers. 

Read the rest:
http://www.foxnews.com/politics/2009/05/
14/new-jobless-claims-rise-expected-aut
o-layoffs-increase/

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See also Reuters:
http://news.yahoo.com/s/nm/20090514/bs_n
m/us_usa_economy;_ylt=AjX5pfSxzEPIczaoA
xx4xiCs0NUE;_ylu=X3oDMTJnMWZlN3FqBG
Fzc2V0A25tLzIwMDkwNTE0L3VzX3VzYV9
lY29ub215BGNwb3MDNARwb3MDMTEEc2
VjA3luX3RvcF9zdG9yeQRzbGsDYXV0b2x
heW9mZnNs

Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

May 14, 2009

Stuart Varney says, “America’s standard of living, especially for Middle Class America, is likely to stagnate or drop due to the Obama administration’s spending and debt.”

Varney is the British economic journalist, currently working for the Fox News Channel.

He said he expects taxes to go up to pay for all the spending and debt and anticipates a recovery.

But he has concerns that the recovery will not return average wage earners to the prosperity they once enjoyed due to new taxes and inflation…..

http://hotair.com/archives/2009/0
5/13/us-speeding-towards-financial-crash/

Top Ten Reasons The Republican Party Will Recover

May 13, 2009

Here’s our Peace and Freedom list of the top ten reasons to expect the Republican Party to make gains over the course of the next two to four years:

1)  The economy: Despite the huge spending measures already enacted by the Obama administration, including the stimulus and the many ‘bailouts,” the economy may not even start any really significant recovery until this time next year.  Voters are already tiring of the recession and showing discontent.

Related:
Bank of England: Recovery will be slow, starting next year
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New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

2)  Democratic leaders like Harry Reid, Nancy Pelosi, and John Murtha.  There is already rumbling that our Congressional leaders are disappointing voters.  Most polls rate congress very poorly even though some 60% like Obama.  Scandals, a lack of integrity and broken promises on transparency can add to the woes of Democrats easily over time.

Related:
Pushy Practices of Pelosi, Murtha Back To Haunt Them?
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Democratic Party a “One Man Show” — After Obama, It’s a “Second-Division Ball Club”
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Pelosi Vehemently Challenges CIA’s Account of Briefings To Her on Waterboarding; Agency “Lied to Congress”
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“Democratic Party is Bought and Paid For By The Unions” Lawmaker Says

House Speaker Nancy Pelosi of Calif. gestures during a news ...

3)  National debt, deficit and spending.

Related:
America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?
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What Did We Get for $180 Billion “Bailout”? AIG Still “Toxic”
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One Hundred Billion Goes To IMF: Money U.S. Taxpayers Will Likely Never See Again
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Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

4)  Taxes.  Taxes will go up.  There is just no way to support all our current spending let alone the promises of overhauls to health care, education, and the environment without raising more money and that means raising taxes.

Related:
Taxes: People and Business Flee Higher Rates; Why Can’t Obama, Congress Get That?
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Governors of Texas, South Carolina to Host “Tea Party 2.0″ This Week


Gov. Rick Perry, Texas
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5)  Unexpected world events.  Just as nobody could have predicted 9/11, there could well be an event as yet unknown that unfolds to change the game for everyone before long.  Just as Joe Biden predicted last year, this president will be tested….

Related:
Battles over energy may lead to wars, Russian strategists conclude

China’s Navy Grows and the World Watches Warily
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6)  Democratic Infighting.  This is the party that has, for a long time, been unable to get along with itself, for too long, before all hell breaks loose….

7)  Inflation.  With all the borrowing of the federal government, inflation is indeed likely.  Nobody will like that one bit.  Which will hurt incumbents….

8)  Loss of buying power and credit.  Obama’s current campaign to rein in the credit card companies is admirable but it may result in millions of people unable to get the credit they’ve grown used to….Expect retail sales to lag other indicators of recovery…..

Retail sales remain slow in April:
http://finance.yahoo.com/news/Reta
il-sales-drop-apf-15227744.html?.v=3

9)  Broken Promises.  “Green jobs” won’t be as numerous or high paying as once promised and work for good jobs will dry up as GM and Chrysler and others move more jobs overseas….The health care overhaul may actually harm enough people that there could be a backlash that wants to punish lawmakers…

Related:
Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions
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Obama, Daschle and Socialized Medicine: Care of GE
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Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

10) Desire for Change/Hope (The Pendulum): In our American system, the pendulum has been swinging to and fro; from Republicans to Democrats and back again for almost all of time.  People will tire of our current way of doing business and even the euphoria over Obama will wane.

Related:
Republican Party Dead? Hardly. Polls Show Erosion and Doubt in Democratic Advantage

Bonus:

11) Traditional Republican Discipline.  The Republicans in general have traditionally shown much more discipline and togetherness than Democrats.  The current squabbling over Cheney, Powell, Gingrich, Rush et al can be expected to wind down as elections near.

12)  The law of unintended consequences.  President Obama has changed so much, so aggressively, so often, so soon in his presidency that the effort is unprecedented.  But this could mean that there is trouble lurking that has not been foreseen.  And we know how well our government foresees things: like the current recession….

13)  Bad Obama planning and staff work.  Nobody had time to read the stimulus?  This will come back to hurt the president and the Democrats in Congress.  Many other examples of stupidity an ineptitude come to mind…..

14)  The “Tea Parties.”  “The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children,” wrote Paul Gessing in the Albuquerque Conservative Examiner.  “The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.”  The fact that people are taking to the streets — people who are both Democrats and republicans — is unprecedented.John E. Carey
Peace and Freedom
In this photograph released by the White House, Air Force One ...

 

Related:
Republicans Determined to Lose?
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Obama Backs Off Promise to Release Abuse Photos
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If you had told me some of these Obama stories three months ago I would have said “impossible!”
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Obama’s Dumb Moves Getting More Difficult to Ignore? On Friday Mainstream Media Realizes Monday’s Cabinet Meeting Was Laughable, Really

Conservatives Need To Recommit to Conservative Values

Michelle Malkin:
http://michellemalkin.com/2009/05/1
3/big-labors-investment-in-obama-pays-off/

http://hotair.com/archives/2009/05/13/
stupid-rnc-to-pass-resolution-rebrand
ing-democrats-the-democrat-socialist-party/

California Says Unions Have Inappropriate Influence With Obama Administration

May 11, 2009

If there was any doubt about labor’s influence, look west to the state of California’s troubles. Officials in Governor Schwarzenegger’s administration say that the SEIU may have had inappropriate influence over the Obama Administration’s decision to withhold stimulus funds for California if the Governor did not undo a scheduled wage cut for workers who are part of the SEIU.

Officials from the Schwarzenegger administration said that they were troubled that the SEIU was included in a conference call between federal and state officials, who were reviewing the wage cut and stimulus funding. The SEIU had lobbied the federal government to intervene.

The state’s health and human services secretary, Kim Belshe, expressed concern over the Obama Administration inviting a siginificant stakeholder into federal-state government negotiatons. According to a list provided by California officials, participants in the conference call included an SEIU lawyer from Washington, D.C. and a California-based SEIU lobbyist and policy staffer.

As part of its budget deal, California legislators agreed to cut $74 million in wages for home health workers. That cut would lower the pay for home health workers – members of the SEIU – by two dollars an hour. The Obama Administration ruled that California must rescind the wage cut or lose $6.8 billion in stimulus funds. Undoing the wage cuts will require a two-thirds vote in the state legislature, which The Wall Street Journal compared to “moving the Sierra Nevadas.”

From LaborPains.org
http://laborpains.org/index.php/2009/05/1
1/ca-says-seiu-influenced-obama-adm
in-on-stimulus/

SEIU is allied with ACORN….

Related:
Stimulus Not About Jobs, But About Control, Payback, Punishment by Fed Government — California Lawmaker Says
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Where Are The Jobs? Ask The Unions
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States Acting Like Tea Party Goers: Fighting Obama’s Spending, Borrowing Recovery Plan: Want Tax and Spending Cuts; Resisting Stimulus
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Top Obama Billionaire Donors Object To His Support Of Unions, “Cardcheck”
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Fed Tells California: Can’t Cut Pay of Union Jobs To Save Budget; Threatens Loss of Stimulus Money

Obama Moving America To Less Dynamic, Less Innovative, Less Skilled and Poorer Nation

May 11, 2009

Something bad and dangerous is happening in Barack Obama’s America.

The powers that the Obama administration claimed in order to arrest the financial crisis and mitigate the recession are being used and abused in ways that are underming the legal and financial stability of the United States. Investors: You are warned.

By David Frum
National Post

The first warning was the attempt to snatch Chrysler’s assets away from their rightful owners to pay off administration friends and supporters.

The Obama plan to save Chrysler would have sold Chrysler’s most valuable assets into a new company co-owned by the U. S. and Canadian governments, Fiat and the United Auto Workers (UAW) — with the UAW getting the biggest piece, 55%. (more…)

White House: stimulus on pace for 3.5 million jobs

May 11, 2009

The Obama administration defended its claim Monday that the $787 billion economic stimulus plan will save or create 3.5 million jobs before 2011, an assertion questioned by some economists and GOP lawmakers.

A report by the White House Council of Economic Advisers says the projections are based on conservative estimates and widely accepted assumptions. The 3.5 million job estimate remains valid, the report says, now that stimulus money is starting to pay for various projects throughout the nation.

The report says the analysis is based on what the CEA considers “the relatively conservative rule of thumb that a 1 percent increase in GDP corresponds to an increase in employment of approximately 1 million jobs,” the report says.

However, it also notes that every increase in the GDP does not translate into new jobs. Existing workers absorb some of the increased economic activity by working longer hours and being more productive, it says.

Models that predict the number of U.S. jobs with and without the stimulus still conclude that the bill will create or save 3.5 million by the end of 2010, the report says.

The Obama administration defended its claim Monday that the $787 billion economic stimulus plan will save or create 3.5 million jobs before 2011, an assertion questioned by some economists and GOP lawmakers.

A report by the White House Council of Economic Advisers says the projections are based on conservative estimates and widely accepted assumptions. The 3.5 million job estimate remains valid, the report says, now that stimulus money is starting to pay for various projects throughout the nation.

The report says the analysis is based on what the CEA considers “the relatively conservative rule of thumb that a 1 percent increase in GDP corresponds to an increase in employment of approximately 1 million jobs,” the report says.

However, it also notes that every increase in the GDP does not translate into new jobs. Existing workers absorb some of the increased economic activity by working longer hours and being more productive, it says.

Models that predict the number of U.S. jobs with and without the stimulus still conclude that the bill will create or save 3.5 million by the end of 2010, the report says.

Read the rest from the Associated Press:
http://news.yahoo.com/s/ap/2009051
1/ap_on_go_ca_st_pe/us_stimulus_jobs_1

Stimulus Not About Jobs, But About Control, Payback, Punishment by Fed Government — California Lawmaker Says

May 11, 2009

With an economy the size of Britain’s, the State of California is struggling to balance its budget.

But now the federal government has become the enemy.

The Los Angeles Times reported last week that the federal government could not reduce the pay on unionized health care workers in order to trim the state’s budget.  The feds say stimulus money headed for California will be withheld if California insists on the pay cuts.

Related:
Fed Tells California: Can’t Cut Pay of Union Jobs To Save Budget; Threatens Loss of Stimulus Money
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Representative Brian Bilbray (R-CA) says the federal government is”engaging in Chicago style politics” and “working to reward supporters with favors.”

Among those getting the favors from the fed are union health care workers in California, Bilbray says.

Bilbray said on Fox News this morning that all kinds of California government employees are taking pay cuts and keeping their jobs in order to help keep the state from bankruptcy.

Bilbray said the stimulus from the U.S. government “is about control” and “punishing people” for not following the lead of Washington DC.

The fed is sticking by statements saying California will not get all its stimulus money if it doesn’t restore the union pay cuts….

Wealthy Democrat Supporters Dumbfounded… Realize Obama Will Take Their Money

http://exurbanleague.com/2009/05/11/do
ing-the-jobs-that-hardworking-gop-politic
ians-wont.aspx