Employment: Heavy Losses Continue in Changing Economy
Nonfarm employment fell 524,000 with broad declines in manufacturing, construction, and services. Aggregate hours declined for the ninth month in a row, signaling a drop of six percent in fourth quarter GDP. Jobs, like credit and output, are adjusting to the expected slow-growing economy of 2009-2010. Consumers remain challenged.
Employment Declines Signal Broad Consumer Weakness
Job declines were widespread with losses in manufacturing and construction - the only bright spots remaining are health care & education, which reflects demographic trends.In contrast to the broad trend of declines in private sector, government employment continues to grow. What might this suggest about the changing composition of the economy?Unemployment Up, Output Down
Rising unemployment rates have been driven by a loss of jobs and are consistent with weakness in consumer spending and the drop in consumer sentiment. Unemployment rates remain significantly different by education cohort.The employment and wages component of personal income continues to weaken and this puts pressure on the consumer.Wachovia Corporation
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