Skip to comments.Private sector job growth remains tepid
Posted on 08/04/2010 6:57:23 PM PDT by NormsRevenge
NEW YORK (Reuters) Companies hired more workers in July but the gains are too slow to reduce unemployment and spur the economy significantly, reports showed on Wednesday.
The reports come two days before the government's more comprehensive jobs reading for the month and illustrate that while the economy's improving, the jobs market has a long way to go.
U.S. private employers added 42,000 jobs in July, payrolls processor ADP Employer Services reported, slightly more than economists forecast but still a tepid figure.
Separately, the Institute for Supply Management reported increased growth in the services sector in July, while its employment gauge for the sector indicated expansion for only the second time since December 2007.
Employment levels are considered key to a pickup in consumer spending and to boosting overall U.S. economic growth, which has shown signs of weakness in recent months.
"We are going to see subpar job growth for quite some time," said Lindsey Piegza, market analyst, FTN Financial in New York.
"What this means to the average person on Main Street is that there is not a lot of jobs out there. There is still a lot of pressure on consumers and investors," Piegza said.
(Excerpt) Read more at news.yahoo.com ...
1. barely or moderately warm; lukewarm: said of liquids
2. lacking warmth of feeling or enthusiasm
I guess “a train wreck” was too over the top then?
If all the jobs where spread over ALL the counties, which they are not, that would make an additional 13.3 jobs per county. As of the 2000 Census, the average U.S. county population is about 100,000. That is an average increase of Private Sector Jobs of .0133%. KEEP UP THE GOOD WORK BARRY!
Almost all of the job growth from 2000 to 2007 was in the FIRE economy- finance, insurance, real estate. When the housing bubble blew up these jobs were gone, and they aren’t likely to be coming back.
Since the end of the Cold War and the rise of the internet we have been outsourcing and de-industrializing this country. I suspect the the tepid growth we are experiencing is a result of twenty plus years of moving factories out of the country. In the past when would start spending at the depth of a recession we would start putting our neighbors back to work. Now when we start spending we put the Chinese to work.
The problem with the income tax in general is that in the need to lower the income tax burden, American citizens and businesses have offshored savings, capital investments, jobs, and even corporate headquarters out of the USA--sheer economic stupidity. That's why I'm in favor of MASSIVE income tax reform to reduce income tax compliance costs and to encourage American citizens and businesses to keep as much of their savings and capital investments in the USA as possible, either by the Steve Forbes flat tax plan or the more radical FairTax replacement for our current income tax.
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