Job Losses Soar; Some Economists Expect Weak Growth for Years

U.S. employers slashed 467,000 jobs in June, far more than the 363,000 economists had expected, the Labor Department reported this morning (July 2). The unemployment rate edged up to 9.5%. Economists had expected 9.6%. Including laid-off workers who have given up looking for jobs or settled for part-time work, the unemployment rate would have been 16.5%. The average workweek fell to a record-low 33 hours. Yesterday, the private ADP employment report recorded a loss of 473,000 jobs in June. Bill Gross of Orange County's PIMCO, considered the nation's leading bond expert, now says that economic growth may be 1% or 2% for several more years, with consumer spending exceedingly weak.

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Calpers is going to have a huge meltdown because of the mismanagement of their pension fund.

They have allowed MORE underfunding on the pipe dream that a dot com style bubble will bail them out down the road.

This will go down as a mistake that will exceed their foolishness when they said the 3%@50 pensions would pay for themselves.

Response to post #1: It's my understanding that Calpers has problems. Best, Don Bauder

The economy is going to be in the gutter for years-and I think there is a very really possibilty of the entire economy collapsing if we continue to print money on credit.

Never before have I thought debt could cave in America's future-but after hearing of another $1 trillion dollars of "stimulas" borrowing this morning there is no doubt in my mind wthe entire countries economy will have a good shot at collapsing.

It is going to get worse, much worse, before it gets better.

Response to post #3: The improvement that will be reported in the second half of this year, and into 2010, will be chimerical. When the government and central bank create this much liquidity (they have thrown $12 trillion at the problem), there is bound to be an appearance of economic improvement. It's a liquidity mirage. Don't count on it. Best, Don Bauder

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