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Unemployment Rate Jumps to 9.6 Percent in August
(AP) The U.S. unemployment rate rose in August for the first time in four months as weak hiring by private employers wasn't enough to keep pace with a large increase in the number of people looking for work.
The Labor Department says companies added a net total 67,000 new jobs last month, down from July's upwardly revised total of 107,000. Wall Street analysts expected a smaller gain, according to Thomson Reuters.
Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. State and local governments shed 10,000 positions. The jobless rate rose to 9.6 percent from 9.5 percent in July.
Wait for it!
The unemployment rate went up a tick and we lost another 54,000 jobs. Thank god the "summer of recovery" is over.
Unemployment Rate Jumps to 9.6 Percent in August - CBS News
There were also 60,000 jobs gained ex-census. The gap between ex-census and current employment is becoming smaller which suggests that the negative impact of lower census hiring should be smaller in the coming months. The 60,000 positive gain is pretty weak, and right on schedule for those who have been saying that the stimulus package was too small to begin with. Without another stimulus, expect a slow economy for the 2nd half of 2010.
There were also 60,000 jobs gained ex-census. The gap between ex-census and current employment is becoming smaller which suggests that the negative impact of lower census hiring should be smaller in the coming months. The 60,000 positive gain is pretty weak, and right on schedule for those who have been saying that the stimulus package was too small to begin with. Without another stimulus, expect a slow economy for the 2nd half of 2010.
Oh WOW, what a clever chappie your are to post this 'forecast' for the 2nd quarter, in the 3rd quarter.
thats just what i think is going to happen. the stimulus is phasing out, and the numbers are not looking encouraging. also, i think it would be the 3rd and 4th quarter.
Were there more or less people unemployed in August 2010 vs. 2009? Were there more or less people employed in August 2010 vs. 2009?
Another stimulus? How was the first stimulus spent?
more unemployed in 2010.
How it was spent:
Exactly, more people unemployed in 2010 than in 2009 according to the Bureau of Labor Statistics.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 11919 12714 13310 13816 14518 14721 14534 14993 15159 15612 15340 15267
2010 14837 14871 15005 15260 14973 14623 14599 14860
Discouraged workers
2008 467 396 401 412 400 420 461 381 467 484 608 642
2009 734 731 685 740 792 793 796 758 706 808 861 929
2010 1065 1204 994 1197 1083 1207 1185 1110
Unemployed + Discouraged
2008 8095 7831 8194 8043 8797 8980 9356 9890 10036 10656 11225 12042
2009 12653 13445 13995 14556 15310 15514 15330 15751 15865 16420 16201 16196
2010 15902 16075 15999 16457 16056 15830 15784 15970
As for the tax cuts, here is what you call a tax cut which if compared to Bush's was not stimulative at all.
Tax cuts
Total: $288 billion
Tax cuts for individuals
Total: $237 billion
• $116 billion: New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phaseout begins at $75,000 for individuals and $150,000 for joint filers.[29]
• $70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009.[29]
• $15 billion: Expansion of child tax credit: A $1,000 credit to more families (even those that do not make enough money to pay income taxes).
• $14 billion: Expanded college credit to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
• $6.6 billion: Homebuyer credit: $8,000 refundable credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years. This only applies to first-time homebuyers.[41]
• $4.7 billion: Excluding from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
• $4.7 billion: Expanded earned income tax credit to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
• $4.3 billion: Home energy credit to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
• $1.7 billion: for deduction of sales tax from car purchases, not interest payments phased out for incomes above $250,000.
Bush Tax cuts
Between 2001 and 2003, the Bush administration instituted a federal tax cut for all taxpayers. Among other changes, the lowest income tax rate was lowered from 15% to 10%, the 27% rate went to 25%, the 30% rate went to 28%, the 35% rate went to 33%, and the top marginal tax rate went from 39.6% to 35%.[3] In addition, the child tax credit went from $500 to $1000, and the "marriage penalty" was reduced. Since the cuts were implemented as part of the annual congressional budget resolution, which protected the bill from filibusters, numerous amendments, and more than 20 hours of debate, it had to include a sunset clause. Unless congress passes legislation making the tax cuts permanent, they will expire in 2011.
When analyzing the effects of say a tax cut or stimulus bill, it is useful to look at the economy with the legislation, and the economy without the legislation, and compare the two. That way the only difference captured is the legislation itself.
For example, the CBO has done this. A stimilus bill without the tax cuts and more government spending/transfer payments (unemployed, to states) would have been more effective than a tax cut.
In addition, I support the extension of the bush tax cuts (at least temporarily) . I am willing to compromise with those more concerned with the deficit to only sunset the provisions that take effect more so on the wealthy (capital gains, dividends, PEP, top bracket), however given our environment I would prefer a full extension through 2011. A stimulus bill (focusing on infrastructure, unemployment benefits, and aid to states) would be even more preferable to me, but that is doubtful.
Actually, what's far more interesting than that is the supposed reliability of the CBO depending on whether it's giving convenient or inconvenient estimates.
Or, we could, just spitballing here, not throw good money after bad, especially with no end in sight to massive, massive deficits.
.1%, the smallest amount they measure this in, is a "jump?"
.1%, the smallest amount they measure this in, is a "jump?"
Yes. O.O It's a jump. And how dare you accuse anyone of being a drama llama.
Were there more or less people unemployed in August 2010 vs. 2009? Were there more or less people employed in August 2010 vs. 2009?
Another stimulus? How was the first stimulus spent?
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