Tags: U.S. unemployment | hiring | Ben Bernanke

Poll: This Week's Payroll Numbers Will Be Disappointing

Monday, 29 Aug 2011 10:05 AM

The government will likely report on Friday that nonfarm payrolls increased by merely 46,000 jobs in August, according to a poll of economists conducted by MarketWatch.

In July, nonfarm payrolls increased by 117,000, according to the Labor Department.

The debt-ceiling impasse and the ensuing downgrade of the U.S. AAA rating by Standard and Poor's may have spooked some companies from adding to their payrolls.

"We worry that firms may have been slow to hire workers during the negotiations, particularly those that do business with government," says Peter D’Antonio, an analyst at Citi, according to MarketWatch.

Some economists says the country can expect another five years until the job market fully recovers from the recession, including Paul Ashworth and Paul Dales of Capital Economics.

"The view that the U.S. will avoid a lost decade because the policy response was quicker and bigger than in Japan is not very convincing when the U.S. economic performance has already been worse than Japan's," the two economists write in a note to clients.

"The U.S. could easily be facing another five years of weak economic growth. And the argument that if the U.S. was going to fall into deflation it would already have done so doesn’t stand up when it took nine years for deflation to take hold in Japan."

Federal Reserve Chairman Ben Bernanke, however, says that while the economy is taking longer than expected to recover, better days do lie ahead.

"The economic healing will take a while, and there may be setbacks along the way," Bernanke says, according to Reuters. "However ... the healing process should not leave major scars."

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The government will likely report on Friday that nonfarm payrolls increased by merely 46,000 jobs in August, according to a poll of economists conducted by MarketWatch. In July, nonfarm payrolls increased by 117,000, according to the Labor Department. The debt-ceiling...
U.S. unemployment,hiring,Ben Bernanke
268
2011-05-29
Monday, 29 Aug 2011 10:05 AM
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