Category Archives: Employment

Unemployment impact on American households, February 7, 2013, NY Times reports Rutgers study, Nearly a quarter layed off, Recession all consuming, Real unemployment rate

Unemployment impact on American households, February 7, 2013, NY Times reports Rutgers study, Nearly a quarter layed off, Recession all consuming, Real unemployment rate

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“The United States economy has lost more jobs than it has added since the recovery began over a year ago.”…NY Times Sept. 20, 2010.

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

The following is a decent article from the NY Times except for the fact that it fails to accurately reflect the real unemployment rate. That is, the large number of people who have dropped out of the workforce, i.e., the large drop in the Labor Force Participation Rate.

Where I come from, if you are going to report the truth about unemployment and the impact on American households, you do not omit that important fact.

From the NY Times February 7, 2013.

“Profound Weight of Layoffs Is Seen in Work Trends Survey”
“Layoffs have touched nearly every American household in some fashion over the last few years, according to new survey data to be released Thursday by the John J. Heldrich Center for Workforce Development at Rutgers University.

While about 8 percent of Americans are unemployed, nearly a quarter of Americans say they were laid off at some point during the recession or afterward, according to the survey. More broadly, nearly eight in 10 say they know someone in their circle of family and friends who has lost a job.

“This to me is why the recession was so all-consuming and is likely to influence the American psyche,” said Cliff Zukin, a public policy and political science professor at Rutgers and co-author of the report. “Almost everyone, four out of five, were directly or one step removed from unemployment and all that goes with it financially, socially, psychologically.”

The survey presented a bleak view of the economic future.

A majority of Americans say they think it will be at least six years before the economy is made whole again, if ever. Three in 10 said the economy would never fully recover from the Great Recession.

“Despite significant improvements in the nation’s labor market, American workers’ concerns about unemployment, the job market, job security and the future of the economy have not changed much since we conducted a similar survey in August 2010,” the report said.

Just a third of Americans surveyed in this poll, conducted from Jan. 9-16, said they thought the economy would be better next year, the same share that said so two years earlier.

Of those laid off in recent years, nearly a quarter said they still had not found a job. Re-employment rates for older workers have been particularly bad, with nearly two-thirds of unemployed people 55 and older saying they actively sought a job for more than a year before finding one or had still not found work.”

Rutgers University study.

Click to access Work_Trends_February_2013.pdf

Here are a few examples of what could have been added to the report:

“The unemployment rate fell by .2 percent only because the labor force participation rate dropped .2 percent to record lows.”

https://citizenwells.wordpress.com/2012/09/07/labor-force-participation-rate-drops-to-record-low-unemployment-still-over-8-percent-2-percent-drop-in-labor-force-lowers-unemployment-rate-white-house-brags/

“Here is the acid test, the bottom line on Obama and the Democrats impact on jobs.

When the Democrats took control of congress in January 2007, the unemployment rate was 4.6 percent.

When Obama  took control of the White House in January 2009, the unemployment rate was 7.8 percent.

The stated current unemployment rate is 8.3 percent.

That is job creation???

http://data.bls.gov/timeseries/LNS14000000

And that is not all.

The Labor Force Participation Rate has dropped. If that rate had not dropped, the unemployment rate would have been significantly higher.

When the Democrats took control of congress in January 2007, the Labor Force Participation Rate 66.4 percent.

When Obama took control of the White House in January 2009, the Labor Force Participation Rate was 65.7 percent.

The Labor Force Participation Rate currently is 63.7 percent.”

https://citizenwells.wordpress.com/2012/08/05/obama-job-facts-august-5-2012-obama-lies-about-jobs-created-fewer-jobs-since-obama-and-democrats-took-control-higher-unemployment-lower-labor-force-participation/

US stated unemployment rate 7.9 percent, Labor force participation rate 63.6 percent, NC unemployment rate up, Berkshire Hathaway buys Greensboro News Record

US stated unemployment rate 7.9 percent, Labor force participation rate 63.6 percent, NC unemployment rate up, Berkshire Hathaway buys Greensboro News Record

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984”

 

From the US Labor Dept. February 1, 2013.

“Employment Situation Summary”

“Total nonfarm payroll employment increased by 157,000 in January, and the unemployment rate was essentially unchanged at 7.9 percent, the U.S. Bureau of Labor Statistics reported today. Retail trade, construction, health care, and wholesale trade added jobs over the month.

Household Survey Data

The number of unemployed persons, at 12.3 million, was little changed in January. The unemployment rate was 7.9 percent and has been at or near that level since September 2012. (See table A-1.) (See the note and tables B and C for information about annual population adjustments to the household survey estimates.)

Among the major worker groups, the unemployment rates for adult men (7.3 percent), adult women (7.3 percent), teenagers (23.4 percent), whites (7.0 percent), blacks (13.8 percent), and Hispanics (9.7 percent) showed little or no change in January. The jobless rate for Asians was 6.5 percent (not seasonally adjusted), little changed from a year earlier.
(See tables A-1, A-2, and A-3.)

In January, the number of long-term unemployed (those jobless for 27 weeks or more) was about unchanged at 4.7 million and accounted for 38.1 percent of the unemployed. (See table A-12.)

Both the employment-population ratio (58.6 percent) and the civilian labor force participation rate (63.6 percent) were unchanged in January.”

http://www.bls.gov/news.release/empsit.nr0.htm

The Orwellian reporting of Obama and economic news is getting worse with no end in sight.

The Greensboro News Record has done a decent job of economic and jobs reporting over the past year.

However,

Warren Buffett’s Berkshire Hathaway just bought the Greensboro News Record.

“But Kroeger said BH Media likes the News & Record because it is the dominant source of information for the region, and that gives it an edge in attracting advertisers.

Kroeger said it’s important that the print newspaper is affordable and accessible to all readers, even in an economically troubled region.

But plenty of readers want their news by computer, smartphone and iPad. So, BH Media wants to deliver content to those people and earn money in the process.”

http://www.news-record.com/home/latestnews/673320-91/buffett-media-buys-news-

From the Greensboro News Record  January 30, 2013 .

“Update: Jobless rate up slightly in Triad”

“The jobless rate for the Greensboro-High Point metro area was 9.6 percent in December, up from November’s figure of 9.2 percent.

The December rate was lower compared with December 2011, which had a jobless rate of 10.5 percent, according to figures the N.C. Department of Commerce released today.”

http://www.news-record.com/news/business/665883-92/update-jobless-rate-up-slightly

“up slightly”

Is that like slightly pregnant?

Actually, unemployment was up in 97 of 100 counties in NC!

From the Greensboro News Record  February 1, 2013 .

“Greensboro area jobless rate drops, still high”

“No economist likes a 9.6 percent unemployment rate.

But December’s rate in the Greensboro/High Point Metro Area is nearly 1 percentage point lower than it was in December 2011, according to figures released Wednesday by the state Department of Commerce.

“That’s a terrible number, but it’s less terrible than a year ago,” said Andrew Brod, senior research fellow at the Center for Business and Economic Research at UNCG.”

http://www.news-record.com/news/crime/latestnewsnewscrime/666278-92/greensboro-area-jobless-rate-drops

“:jobless rate drops”

How many people read that and believed that it was reality?

Factor in the drop in the labor force participation rate in NC and it may not have dropped from a year ago.

George Orwell must be spinning in his grave.

NC unemployment rates increased in 97 of 100 counties, Graham County 18.5 percent, Guilford 9.5, Mecklenburg 9.3, Labor force participation rate down

NC unemployment rates increased in 97 of 100 counties, Graham County 18.5 percent, Guilford 9.5, Mecklenburg 9.3, Labor force participation rate down

“The United States economy has lost more jobs than it has added since the recovery began over a year ago.”…NY Times Sept. 20, 2010.

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

NC unemployment rates increased in 97 of 100 counties.

That is scary enough.

That is only part of the picture.

Since the Democrats took control of congress in 2007, the labor force participation rate in NC has dropped 3.6 percent. Since Obama took the White House it has dropped 1.8 percent. So as bad as these unemployment rates appear, they are actually much higher.

From the NC Department of Commerce January 30, 2013.

“Unemployment rates increased in 97 of North Carolina’s 100 counties in December, decreased in one, and were unchanged in two. Thirteen of the State’s metro areas also experienced rate increases while one metro decreased. The December (not seasonally adjusted) statewide rate was 9.5 percent.

Graham County had the highest unemployment rate at 18.5 percent, while Orange County had the lowest at 5.9 percent. Among the Metro areas, Rocky Mount at 12.5 percent experienced the highest rate, and Durham-Chapel
Hill at 7.2 percent had the lowest.”

“North Carolina’s statewide unemployment rate (not seasonally adjusted) was 9.5 percent in December. This was a 0.5 of a percentage-point increase from November’s revised rate of 9.0 percent, and a 0.7 percentage-point decrease over the year.”

“Unemployment rates increased in 13 of the state’s 14 Metropolitan Statistical Areas (MSAs). The Rocky Mount MSA had the highest unemployment rate in December at 12.5 percent. Durham/Chapel Hill reported the month’s lowest unemployment rate at 7.2 percent, which increased 0.3 of a percentage point from the previous month. Asheville and Raleigh/Cary followed at 7.5 percent.”

Click to access NR_December2012_CntyRates_M.pdf

AP job facts January 23, 2013, Recession tech kill middle class jobs, 70 percent of jobs added low paying, Government policies biggest job killer

AP job facts January 23, 2013, Recession tech kill middle class jobs, 70 percent of jobs added low paying, Government policies biggest job killer

“only 2 percent of the 3.5 million jobs gained since the recession ended in June 2009 are midpay. Nearly 70 percent are low-paying jobs”…AP, Kitsap Sun January 22, 2013

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

With the controversy about the AP producing biased reports about jobs added and unemployment, I did a search this morning:

January 23, 2013 AP jobs

I found the article below. There is truth in the article. There has been a trend for technology to replace jobs. Technology has also helped companies to function after massive layoffs. However, Technology did not cause the “Great Recession.”

From the Kitsap Sun January 22, 2013.

“Five years after the start of the Great Recession, the toll is terrifyingly clear: Millions of middle-class jobs have been lost in developed countries the world over.

And the situation is even worse than it appears.

Most of the jobs will never return, and millions more are likely to vanish as well, say experts who study the labor market. What’s more, these jobs aren’t just being lost to China and other developing countries, and they aren’t just factory work. Increasingly, jobs are disappearing in the service sector, home to two-thirds of all workers.

They’re being obliterated by technology.”

“The numbers startle even labor economists. In the United States, half of the 7.5 million jobs lost during the Great Recession paid middle-class wages, ranging from $38,000 to $68,000. But only 2 percent of the 3.5 million jobs gained since the recession ended in June 2009 are midpay. Nearly 70 percent are low-paying jobs; 29 percent pay well.”

“Over the past 50 years, technology has drastically reduced the number of jobs in manufacturing. Robots and other machines controlled by computer programs work faster and make fewer mistakes than humans. Now, that same efficiency is being unleashed in the service economy, which employs more than two-thirds of the workforce in developed countries. Technology is eliminating jobs in office buildings, retail establishments and other businesses consumers deal with every day.”

“Thanks to technology, companies in the Standard & Poor’s 500 stock index reported one-third more profit the past year than they earned the year before the Great Recession. They’ve also expanded their businesses, but total employment, at 21.1 million, has declined by a half-million.”

“In the U.S., the economic recovery that started in June 2009 has been called the third straight “jobless recovery.”

But that’s a misnomer. The jobs came back after the first two.

Most recessions since World War II were followed by a surge in new jobs as consumers started spending again and companies hired to meet the new demand. In the months after recessions ended in 1991 and 2001, there was no familiar snap-back, but all the jobs had returned in less than three years.

But 42 months after the Great Recession ended, the U.S. has gained only 3.5 million, or 47 percent, of the 7.5 million jobs that were lost. The 17 countries that use the euro had 3.5 million fewer jobs last June than in December 2007.

This has truly been a jobless recovery, and the lack of midpay jobs is almost entirely to blame.”
Read more:

http://www.kitsapsun.com/news/2013/jan/22/ap-impact-recession-tech-kill-middle-class-02/#ixzz2InmaRPFt

While technology may account for some job losses, a big part of the answer lies in Washington, DC.

Diogenes

Looking for honest reporting.

Unemployment Insurance claims report January 17, 2013, Total claiming benefits in all programs increased 465547, Top 3 increases NY GA NC over 66K

Unemployment Insurance claims report January 17, 2013, Total claiming benefits in all programs increased 465547, Top 3 increases NY GA NC over 66K

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

“Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984”

 

Talk about creative accounting and seasonal adjustments.

The alleged decrease of  37,000 initial claims from the prior week makes zero reality sense.

From the US Labor Dept. January 17, 2013.

“UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

SEASONALLY ADJUSTED DATA”

“SEASONALLY ADJUSTED DATA

In the week ending January 12, the advance figure for seasonally adjusted initial claims was 335,000, a decrease of 37,000 from the previous week’s revised figure of 372,000. The 4-week moving average was 359,250, a decrease of 6,750 from the previous week’s revised average of 366,000.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending January 5, an increase of 0.1 percentage point from the prior week’s unrevised rate. The advance number for seasonally adjusted insured unemploymentduring the week ending January 5 was 3,214,000, an increase of 87,000 from the preceding week’s revised level of 3,127,000. The 4-week moving average was 3,195,750, a decrease of 6,000 from the preceding week’s revised average of 3,201,750.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 555,708 in the week ending January 12, an increase of 2,360 from the previous week. There were 525,422 initial claims in the comparable week in 2012.

The advance unadjusted insured unemployment rate was 3.0 percent during the week ending January 5, an increase of 0.1 percentage point from the prior week’s unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,850,441, an increase of 170,067 from the preceding week. A year earlier, the rate was 3.2 percent and the volume was 4,109,127.

The total number of people claiming benefits in all programs for the week ending December 29 was 5,821,966, an increase of 465,547 from the previous week. There were 7,826,846 persons claiming benefits in all programs in the comparable week in 2011.”

STATES WITH AN INCREASE OF MORE THAN 1,000


State Change State Supplied Comment
NY +37,189 Layoffs in the transporation, construction, and educational service industries.
GA +15,354 Layoffs in the manufacturing, administrative and support service, construction, and healthcare industries.
NC +13,606 Layoffs in the textile, business service, construction, electronic, furniture and fixtures, rubber and plastic products, lumber and wood products, transportation equipment, food services, metal, mining, service, healthcare service, engineering, accounting, research, amusement and recreation, general merchandise stores, and apparel and accessory industries.
CA +8,691 Layoffs in the service industry as well as agriculture, forestry, and fishing.
TX +8,669 Layoffs in the transportation and warehousing, and manufacturing industries.
SC +8,020 Layoffs in the textile and manufacturing industries.
AL +7,037 Increase is a result of processing claims from prior week when offices were closed due to the holiday. Majority of increase were in the transportation, textile, manufacturing, and construction industries.
TN +4,397 Layoffs in the administrative and support service, textile, contractors, electrical equipment, and construction industries.
VA +3,289 Layoffs in the manufacturing industry.
FL +2,501 Layoffs in the construction, agriculture, trade, retail and service industries.
CT +2,125 No comment.
MO +1,739 Layoffs in the construction, administrative service, and retail industries.
ME +1,594 Layoffs in the construction, manufacturing, and accommodation and food service industires.
CO +1,378 No comment.
AZ +1,262 No comment.

http://www.dol.gov/opa/media/press/eta/ui/current.htm#.UPhMYif7LhI

The top 3 increases in NY, GA and NC total over 66,000.

Pat McCrory pay raises stupid, Republican McCrory inherited Perdue Obama Democrat mess, Perceptions matter, Citizen Wells to McCrory wake up!

Pat McCrory pay raises stupid, Republican McCrory inherited Perdue Obama Democrat mess, Perceptions matter, Citizen Wells to McCrory wake up!

“The road to hell is paved with good intentions.”…Karl Marx

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“And you shall know the truth, and the truth shall set you free.”…Jesus, John 8:32

 

Pat McCrory, the new Republican Governor of NC is a likeable guy. He inherited a huge mess from former Democrat Governor Beverly Perdue, Barack Obama and the Democrats.

McCrory was raised within approx. 15 miles of where I was raised. Though he is younger than I, he must have been surrounded, as I was, by good people who had some damn sense.

Pat McCrory, what the hell were you thinking?

Perceptions matter.

Despite the fact that you inherited this mess, you just gave high pay raises to staff members surrounding you while average North Carolinians are still suffering.

You made a mistake.

Admit it.

Fix it!

From the Raleigh News Observer January 13, 2013.

“Saunders: McCrory takes care of his own”

“If you saw our new governor live or on television banging away on a drum set with a band at Raleigh’s Lincoln Theatre last week, you already know Ringo has nothing to worry about.

For further evidence that the governor is tone deaf, all you had to do was read the newspaper the next day and see that Gov. Pat, henceforth known as Gov. Pay Raise, McCrory bestowed sizable raises on the people closest to him while sprinkling a pittance upon those outside his inner circle – you know, the ones who do the actual work.

Six-figure-earning Cabinet secretaries in his administration received raises ranging from 5 to 11 percent right off the bat. Tony Tata and Kieran Shanahan, directors of transportation and public safety, respectively, got bumped from $121,807 to $135,000.

Nice work if you can get it, and you can get it, apparently, if you’re close enough to reach out and touch the hem of the governor’s garment.

Regular ol’ state workers got raises, too – their first in four years. Surely Gov. McCrory cut them a nice slice of that state cheddar, one commensurate with their worth, right?

Nope. They received raises – if you can call them that – of 1.2 percent. If the average teacher’s salary in North Carolina is $46,605, that means his or her salary went up $559.26.

Hmm. One hundred years ago, that would’ve been enough to keep ’em rolling in fatback, flour and sorghum from the General Store to see them through spring. Now, though, $559.26 might feed a family of four for a month – as long as two of them don’t eat.

Oh … nevermind

Do you remember that campaign talk from Gov. McCrory about how we’ve all got to learn to tighten our belts and live within our means?

Nevermind. He apparently wasn’t talking about the high-up muckety mucks. “I’m trying to make it at least where they can afford to live while running multi-billion-dollar departments,” he said in an earlier interview with The N&O.

I don’t know about you, but I don’t have much confidence in the management skills or fiscal acumen of any Cabinet secretary who can’t live off $121,000 a year but who can live off $135,000.

The governor and his supporters will no doubt stress that these selfless public servants – tee hee – could make more money in the private sector. Perhaps some could, although others – judging by recent work histories – would be lucky to find a job wearing a paper hat and nametag and asking “Paper or plastic?””

Read more:

http://www.newsobserver.com/2013/01/13/2604805/saunders-gov-pay-showers-the-people.html?storylink=MI_emailed

Unemployment insurance initial claims up 4000, January 10, 2013, 4 week moving average increased 6750, 18 states increase more than 1000, American Express cutting 5400 jobs

Unemployment insurance initial claims up 4000, January 10, 2013, 4 week moving average increased 6750, 18 states increase more than 1000, American Express cutting 5400 jobs

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

 

From the US Labor Department January 10, 2013.

“UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT”

“In the week ending January 5, the advance figure for seasonally adjusted initial claims was 371,000, an increase of 4,000 from the previous week’s revised figure of 367,000. The 4-week moving average was 365,750, an increase of 6,750 from the previous week’s revised average of 359,000.”

STATES WITH AN INCREASE OF MORE THAN 1,000


State Change State Supplied Comment
MI +15,107 Layoffs in the manufacturing industry.
PA +12,483 Layoffs in the transportation, construction, food and beverage manufacturing, and metals industries.
WI +6,748 No comment.
NJ +3,436 Layoffs in the educational service industry.
MO +3,057 Layoffs in the transportation and warehousing, and manufacturing industries.
IA +2,804 Increase is a result of processing claims from prior week when offices were closed due to the holiday.
NC +2,300 Layoffs in the machinery, lumber and wood products, transportation and warehousing, automotive repair, service and parking, rubber and plastic products, petroleum, and textile industries.
OR +2,185 Increase is a result of processing claims from prior week when offices were closed due to the holiday.
MD +2,182 No comment.
CA +2,012 Increase is a result of processing claims from prior week when offices were closed due to the holiday.
AL +1,913 Layoffs in the administrative and support service, healthcare and social assistance, construction, and textile industries.
TN +1,589 Layoffs in the administrative and support service, electronics, and construction industries.
KS +1,387 No comment.
CT +1,276 No comment.
OH +1,240 No comment.
ID +1,219 No comment.
VT +1,103 Layoffs in the manufacturing industry.
MA +1,051 Layoffs in the transportation and warehousing industry.

http://www.dol.gov/opa/media/press/eta/ui/current.htm#.UO9P4m_7LhI

From CNN Money January 10, 2013.

“American Express to cut 5,400 jobs”

“American Express announced Thursday that it was cutting 5,400 jobs, becoming the latest large financial firm to reduce its headcount.
The company said the largest reductions would come from its travel businesses, which “operate in an industry that is being fundamentally reinvented as a result of the digital revolution.”

“One outcome of this ongoing shift to online is that we can serve a growing customer base with lower staffing levels,” AmEx CEO Kenneth Chenault said in a call with analysts. “Staying ahead of these trends has led us to redesign the model within global business travel and to continue the evolution within cardmember servicing and collections.”

While the cuts will be partially offset by the addition of new positions, American Express said it expects to see its current work force of 63,500 reduced by between 4% and 6% by the end of the year.

“Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources to drive growth,” Chenault said in a statement.

The company said the cuts “will be spread proportionally between the U.S. and international markets and will primarily involve positions that do not directly generate revenue.”

Shares fell about 0.7% in after-hours trading.

The news came as American Express (AXP, Fortune 500) pre-announced of its fourth-quarter results. Excluding severance costs associated with the job cuts and other special expenses, net income came in at $1.2 billion, or $1.09 a share, exceeding the prediction of $1.06 a share from analysts surveyed by Thomson Reuters. Sales were $8.1 billion, in line with expectations.

Elsewhere in the industry, Morgan Stanley (AACXX) plans to eliminate 1,600 jobs in the coming weeks, a source told CNNMoney this week. Last month, Citigroup (C, Fortune 500) announced plans to cut 11,000 jobs.”

http://money.cnn.com/2013/01/10/investing/american-express-jobs/

Unemployment initial claims January 3, 2013, 372000 claims, Up 10 thousand, 21 states with increases over 1000, Carma for Ohio with Layoffs in the automobile and manufacturing industries

Unemployment initial claims January 3, 2013, 372000 claims, Up 10 thousand, 21 states with increases over 1000, Carma for Ohio with Layoffs in the automobile and manufacturing industries

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

The Unemployment Initial Claims Report for January 3, 2013 was released this morning. 21 states had increases over 1000. Of the top 12 states with claims increases, all but one went for Obama in 2012 and all had initial claims over 2,000. Ohio had the largest increase of 8,795.

I refer to this as Carma.

From the US Labor Department January 3, 2013.

“In the week ending December 29, the advance figure for seasonally adjusted initial claims was 372,000, an increase of 10,000 from the previous week’s revised figure of 362,000. The 4-week moving average was 360,000, an increase of 250 from the previous week’s revised average of 359,750.”

STATES WITH AN INCREASE OF MORE THAN 1,000


State Change State Supplied Comment
OH +8,795 Layoffs in the automobile and manufacturing industries.
MI +6,641 Layoffs in the manufacturing industry.
PA +5,530 Layoffs in the entertainment and accommodations, and food service industries.
KY +4,745 No comment.
MA +4,330 Layoffs in the educational services, construction, transportation, retail, food service and manufacturing industries.
NJ +3,710 Layoffs in the educational services, construction, manufacturing, and real estate and rental industries.
IL +3,445 Layoffs in the construction and manufacturing industries.
VA +3,366 No comment.
WI +2,833 No comment.
NY +2,401 Layoffs in the construction, food service, professional, scientific, and technical service industries.
CT +2,084 No comment.
WA +2,008 Layoffs in the agriculture, forestry, fishing and hunting, and construction industries.
IA +1,648 Layoffs in construction and manufacturing industries.
NC +1,394 Layoffs in the business services and construction industries.
MD +1,353 No comment.
MO +1,311 Layoffs in the accommodation and food service industries.
OK +1,198 No comment.
IN +1,175 Layoffs in the construction and transportation manufacturing industries.
OR +1,150 Layoffs in seasonal industries.
AR +1,092 No comment.
TN +1,030 Layoffs in the administrative and supporting service, food service, specialty trade contractors, metal, and construction industries.

http://www.dol.gov/opa/media/press/eta/ui/eta20122533.htm#.UOXh8W_7LhI

Obama supporters resemble Eloi of HG Wells “Time Machine”, Ask no questions and be fed, Morlocks represent government, Eloi like Obots and sheep led to slaughter

Obama supporters resemble Eloi of HG Wells “Time Machine”, Ask no questions and be fed, Morlocks represent government, Eloi like Obots and sheep led to slaughter

“If the party could thrust its hand into the past and say
of this and that event, it never happened–that, surely,
was more terrifying than mere torture and death.”…George Orwell, “1984″

“The question had come into my mind abruptly: were these creatures fools? You may hardly understand how it took me. You see I had always anticipated that the people of the year Eight Hundred and Two Thousand odd would be incredibly in front of us in knowledge, art, everything. Then one of them suddenly asked me a question that showed him to be on the intellectual level of one of our five-year-old children”…HG Wells, “Time Machine”

“We control life, Winston, at all its levels. You are imagining that there is something called human nature which will be outraged by what we do and will turn against us. But we create human nature. Men are infinitely malleable.”…George Orwell, “1984″

Two days ago I caught part of 2 shows, Mark Steyn substituting for Rush Limbaugh and part of the movie “Time Machine” by HG Wells

A caller from Washington State began chastising Mark Steyn for being so negative about the economy and Steyn simply replied food stamps usage has skyrocketed. That really does tell the tale. Home prices going up some means very little since they had no where to go but up and the housing market will continue to stagnate as long as the core economy falters.

The unemployment situation is much worse than the stated unemployment rate. Labor Force Participation Rates are at historic lows and if one reads the Labor Dept. reports a clearer picture emerges.

“The total number of people claiming benefits in all programs for the week ending December 8 was 5,475,708, an increase of 73,279 from the previous week.”

http://www.dol.gov/opa/media/press/eta/ui/current.htm#.UN2vzW_7LhJ

From the Guardian December 26, 2012.

“US markets take hit from poor Christmas spending figures”

“Retailers pulled stocks lower Wednesday as US markets reopened following the Christmas holiday.

The Dow Jones industrial average fell 49 points to 13,090 as of noon. The Standard & Poor’s 500 index fell seven to 1,419 and the Nasdaq composite lost 19 to 2,993.

Trading was quiet. European markets were still closed.

Major US retailers fell following a glum report on US holiday sales. Macy’s and Urban Outfitters lost 3%. Sears Holdings fell nearly 5%.

The MasterCard Advisors SpendingPulse report found that sales of electronics, clothing, jewelry and home goods increased just 0.7% in the two months before Christmas compared with the same period last year.

That’s well below the growth of 3 to 4% growth that analysts had expected and the worst performance since 2008, when spending shrank during the Great Recession.

Last year sales climbed 4 to 5% during November and December, according to ShopperTrak.”

http://www.guardian.co.uk/business/2012/dec/26/christmas-spending-figures-markets-down

I read HG Wells’ “Time Machine” many years ago and have seen the movie several times. I was sitting at my desk and turned on the TV to find the movie playing on TCM. The part where the Eloi were being interacted with was playing. In the past I viewed them as a frightening spectre of what could play out in human history. However, this time, especially after hearing the Mark Steyn caller in denial, I was struck by how much the Eloi resembled Obama supporters, Obots. Don’t ask questions and expect to be fed. The movie in this case, more so than the book, provided the stark imagery.

From the “Time Machine” by HG Wells.

Chapter 4

“As they made no effort to communicate with me, but simply stood round me smiling and speaking in soft cooing notes to each other, I began the conversation.”

“For a moment I was staggered, though the import of his gesture was plain enough. The question had come into my mind abruptly: were these creatures fools? You may hardly understand how it took me. You see I had always anticipated that the people of the year Eight Hundred and Two Thousand odd would be incredibly in front of us in knowledge, art, everything. Then one of them suddenly asked me a question that showed him to be on the intellectual level of one of our five-year-old children – asked me, in fact, if I had come from the sun in a thunderstorm! It let loose the judgment I had suspended upon their clothes, their frail light limbs, and fragile features. A flow of disappointment rushed across my mind. For a moment I felt that I had built the Time Machine in vain.”

“However, I felt like a schoolmaster amidst children, and persisted, and presently I had a score of noun substantives at least at my command; and then I got to demonstrative pronouns, and even the verb “to eat.” But it was slow work, and the little people soon tired and wanted to get away from my interrogations, so I determined, rather of necessity, to let them give their lessons in little doses when they felt inclined. And very little doses I found they were before long, for I never met people more indolent or more easily fatigued.”

“Looking round with a sudden thought, from a terrace on which I rested for a while, I realized that there were no small houses to be seen. Apparently the single house, and possibly even the household, had vanished. Here and there among the greenery were palace-like buildings, but the house and the cottage, which form such characteristic features of our own English landscape, had disappeared.

“Communism,” said I to myself.”

Chapter 5
“I wasted some time in futile questionings, conveyed, as well as I was able, to such of the little people as came by. They all failed to understand my gestures; some were simply stolid, some thought it was a jest and laughed at me. I had the hardest task in the world to keep my hands off their pretty laughing faces.”

“Going through the big palace, it seemed to me that the little people avoided me. It may have been my fancy, or it may have had something to do with my hammering at the gates of bronze. Yet I felt tolerably sure of the avoidance. I was careful, however, to show no concern and to abstain from any pursuit of them, and in the course of a day or two things got back to the old footing. I made what progress I could in the language, and in addition I pushed my explorations here and there. Either I missed some subtle point or their language was excessively simple – almost exclusively composed of concrete substantives and verbs. There seemed to be few, if any, abstract terms, or little use of figurative language. Their sentences were usually simple and of two words, and I failed to convey or understand any but the simplest propositions.”
“I must confess that my satisfaction with my first theories of an automatic civilization and a decadent humanity did not long endure. Yet I could think of no other. Let me put my difficulties. The several big palaces I had explored were mere living places, great dining-halls and sleeping apartments. I could find no machinery, no appliances of any kind. Yet these people were clothed in pleasant fabrics that must at times need renewal, and their sandals, though undecorated, were fairly complex specimens of metalwork. Somehow such things must be made. And the little people displayed no vestige of a creative tendency. There were no shops, no workshops, no sign of importations among them. They spent all their time in playing gently, in bathing in the river, in making love in a half-playful fashion, in eating fruit and sleeping. I could not see how things were kept going.”

“The great triumph of Humanity I had dreamed of took a different shape in my mind. It had been no such triumph of moral education and general co-operation as I had imagined. Instead, I saw a real aristocracy, armed with a perfected science and working to a logical conclusion the industrial system of to-day. Its triumph had not been simply a triumph over Nature, but a triumph over Nature and the fellow-man. This, I must warn you, was my theory at the time. I had no convenient cicerone in the pattern of the Utopian books. My explanation may be absolutely wrong. I still think it is the most plausible one. But even on this supposition the balanced civilization that was at last attained must have long since passed its zenith, and was now far fallen into decay. The too-perfect security of the Upper-worlders had led them to a slow movement of degeneration, to a general dwindling in size, strength, and intelligence. That I could see clearly enough already. What had happened to the Under-grounders I did not yet suspect; but from what I had seen of the Morlocks – that, by the by, was the name by which these creatures were called – I could imagine that the modification of the human type was even far more profound than among the “Eloi,” the beautiful race that I already knew.”

http://www.online-literature.com/wellshg/timemachine/4/

Unemployment claims, December 13, 2012, 26 states had initial claims increases over a thousand, 5 states over 10 thousand, Total people claiming benefits in all programs increased 683477

Unemployment claims, December 13, 2012, 26 states had initial claims increases over a thousand, 5 states over 10 thousand, Total people claiming benefits in all programs increased 683477

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

You will never read this in the mainstream media. But the data is there, you just have to look and to care.

26 states had initial claims increases over a thousand, 5 states over 10 thousand.

From the US Labor Department December 13, 2012.

“UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT”

“In the week ending December 8, the advance figure for seasonally adjusted initial claims was 343,000, a decrease of 29,000 from the previous week’s revised figure of 372,000. The 4-week moving average was 381,500, a decrease of 27,000 from the previous week’s revised average of 408,500.”

“The total number of people claiming benefits in all programs for the week ending November 24 was 5,642,678, an increase of 683,477 from the previous week.”

“The largest increases in initial claims for the week ending December 1 were in California (+24,411), Pennsylvania (+14,636), North Carolina (+13,961), New York (+11,025), and Texas (+10,435)”

STATES WITH AN INCREASE OF MORE THAN 1,000


State Change State Supplied Comment
CA +24,411 Increase a result of processing claims from prior week when offices were closed due to Thanksgiving holiday. Layoffs in the service, agriculture, forestry, and fishing industries.
PA +14,636 Layoffs in the construction, professional, scientific and technology service, transportation, entertainment, and accommodations and food service industries.
NC +13,961 No Comment .
NY +11,025 Layoffs in the transportation, construction, and food service industries.
TX +10,435 Increase a result of processing claims from prior week when offices were closed due to Thanksgiving holiday.
GA +8,708 Layoffs in the manufacturing, administrative service, construction, trade, healthcare and social assistance, and accommodations and food service industries.
IL +8,478 Layoffs in the construction, manufacturing, and administrative industries.
SC +5,009 Layoffs in the machinery manufacturing, textile, and fabricated metal products industries.
MI +4,065 Layoffs in the administrative service industry.
TN +3,846 Layoffs in the administrative service, manufacturing, trade, food service industries.
VA +3,326 Layoffs in the manufacturing industry.
MN +3,168 No comment.
MO +3,053 Layoffs in the construction and administrative service industries
AL +2,668 Layoffs in the construction, administrative service, accommodations and food service, and retail industries.
NJ +2,191 Layoffs in the construction, administrative, and retail industries.
MD +1,737 No comment.
NV +1,704 Increase a result of processing claims from prior week when offices were closed due to Thanksgiving holiday.
PR +1,699 No comment.
MA +1,654 No comment.
WV +1,477 Layoffs in the mining, manufacturing, information, managing, administrative service, waste, and accomadations and food service industries.
AZ +1,462 No comment.
OR +1,348 Increase in initial claims are due layoffs in seasonal industries and occupations and processing claims from prior week when offices were closed due to Thanksgiving holiday.
LA +1,343 No comment.
OH +1,269 Layoffs in the automobile and manufacturing industries.
CT +1,252 No comment.
IN +1,246 Layoffs in the manufacturing industry.

http://www.dol.gov/opa/media/press/eta/ui/current.htm#.UMunSm_7LhI