Saturday, September 04, 2010

August Jobs Report

The summer jobs situation has shown the economy remains soft. That said, there is normally a weaker economy in the summer so we will have to see how things continue to play out.

Last month the economy lost 54,000 jobs, 114,000 of which were Census jobs. The unemployment rate inched up to 9.6 percent.

It is easy to criticize - which is what Republicans continue to do - but put into context from where we were at the end of 2008, it has been a miraculous recovery. Republicans want to extend the Bush tax cuts - that is pretty much the extent of their plan. That would basically keep things where we are - so they complain but offer nothing to change things.

Corporate profits have returned to pre-collapse levels. They are hoarding cash and the money will flow out soon. That will lead to large scale hiring. It should happen within the next 6-12 months.

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