[OPE] Where are the new jobs going to come from?

From: Jurriaan Bendien <adsl675281@telfort.nl>
Date: Sat Jun 20 2009 - 05:57:46 EDT

This report outlines a constructed measure of effective employment: BLS's
measurement of unemployed, 2.2 million marginally attached workers, and 9.1
million workers employed part time only because they can't find full time
work plus another 4.4 million Americans who want to work but gave up the
search over a year ago. This results in an 18.68% effective unemployment
rate of the available labour capacity.

Other highlights from the report:

*The US economy must add 125,000 jobs per month just to keep pace with
population growth.
*Employment growth is further hindered by continued productivity gains
through this recession.
*As of Q1 2009, only 27% of employers experiencing mass layoffs anticipate
rehiring some of the displaced workers.
*The most severe unemployment and job losses are occurring in sectors
comprising the productive economy, precisely the sectors that must grow to
shift from the debt-financed growth of the recent past to growth driven by
production and consumption made possible by rising incomes.
*Mass unemployment is now fueling home foreclosures on prime mortgages: 5.7%
of prime fixed-rate loans were overdue or in foreclosure last quarter, up
from 3.2% a year earlier.

Europe Payrolls Shrink by Record 1.22 Million Jobs
By Simone Meier
June 15 (Bloomberg)
Europe's economy lost a record 1.22 million jobs in the first quarter as
companies cut spending to survive the worst global economic slump in more
than six decades. Employment payrolls in the 16-member euro region fell 0.8
percent from the fourth quarter, when they declined 0.4 percent, the
European Union statistics office in Luxembourg said today. The first-quarter
drop was the biggest decline since the data series started in 1995. From a
year earlier, payrolls contracted 1.2 percent, the first annual decline on
record. (...) "Companies will continue to cut jobs well into 2010, pushing
up unemployment across the region," said Stefan Bielmeier, an economist at
Deutsche Bank AG in Frankfurt. "While the economy may start to stabilize,
the worst is still ahead in terms of the labor market." (...) The worldwide
financial crisis, which started with the collapse of the U.S. property
market in 2007, has triggered more than $1.46 trillion of writedowns and
credit losses at banks and other financial institutions, according to data
compiled by Bloomberg, and sent the global economy into its first recession
since World War II. The statistics office estimates that the total number of
people employed in the euro area was 146.2 million in the first quarter.
Total employment in the 27-nation EU was 223.8 million. The fourth-quarter
drop in euro-area employment from the prior quarter was revised to 0.4
percent from 0.3 percent estimated earlier.

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