Tags: US | Jobs | Losses | unemployment

Nomura: US to Report Jobs Losses In August

Thursday, 25 Aug 2011 07:51 AM

Get ready for some bad news for an already bad jobs market.

August will likely report the country lost a net 5,000 nonfarm payrolls, according to U.S. economists at Nomura, a Japanese financial institution.

That figure is way below a previous Normura forecast of a 100,000-jobs gain and largely due to a strike by Verizon Communications workers, according to the Wall Street Journal.

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(Getty Images photo)
In July, the U.S. added a net 117,000 nonfarm payrolls, a figure that brought the unemployment rate to 9.1 percent, basically flat from 9.2 percent in June, according to the Bureau of Labor Statistics.

The government will unveil August figures on Sept. 2.

Aside from the Verizon strike, a drop in the Philadelphia Fed’s August manufacturing survey and a July slowdown in the growth in payroll tax receipts reported by the Treasury Department prompted Nomura to slash its jobs growth forecast into negative territory.

While layoffs aren't shooting up, "businesses likely shut the door on hiring as the economic outlook become even more 'unusually uncertain' amid fears of European contagion and stock market volatility. Surveys of business confidence have also pointed to stalled hiring intentions," Nomura says.

The numbers probably won't mark the arrival of a recession since the end of the Verizon strike will lead to a rebound of jobs in September.

The economy is growing so slowly that it will take years for unemployment rates to fall back to pre-recession levels, says Cleveland Federal Reserve Bank President Sandra Pianalto.

The economy should grow by 2 percent in 2011 and about 3 percent in 2012 and 2013, not enough to really bring the unemployment rate down from current levels.

"If we're going to dig ourselves out of the hole that we're in and begin to drive down the unemployment rate, we need even faster growth than that," Pianalto says, according to Reuters.

"I think it will take quite a few years for the unemployment rate to fall to more typical levels, in the neighborhood of 5.5 percent."

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Get ready for some bad news for an already bad jobs market. August will likely report the country lost a net 5,000 nonfarm payrolls, according to U.S. economists at Nomura, a Japanese financial institution. That figure is way below a previous Normura forecast of a...
US,Jobs,Losses,unemployment
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2011-51-25
Thursday, 25 Aug 2011 07:51 AM
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