"New jobless claims rise unexpectedly" by Associated Press | September 5, 2008
WASHINGTON - Jobless claims rose unexpectedly last week, the government said yesterday, while companies responded to the slowing economy by producing more with fewer workers.
It was not great news for American workers, who have seen jobs decline and wages erode, but it may signal less inflation worry for the Federal Reserve. That news, plus disappointing sales reports from retailers, sent financial markets down as investors lost hope for an end of the year recovery.
Many economists expect unemployment will continue to rise for the rest of the year. A separate report yesterday indicated that hiring by companies in the service sector has declined.
"Across the board, we're seeing evidence that labor conditions are worsening," said Carl Riccadonna, senior economist at Deutsche Bank Securities. A tougher job market can crimp consumer spending as laid off workers and those who fear for their jobs cut back on their purchases. That can further weaken the economy.
The economy grew by a robust 3.3 percent in the spring, thanks to a surge in exports and the government's tax rebates. Companies are responding to the downturn by doing more with less, which led to a jump in productivity this spring, the Labor Department said yesterday.
Productivity, or the amount of output for every hour of work, rose at a 4.3 percent annual rate in the April-June quarter, a full percentage point higher than economists expected.
Don't you just love stoo-pid Americans who WORK HARDER as they are GETTING FUCKED?!!!
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Also see: The AmeriKan People Deserve What They Get
NEW YORK - Wal-Mart Stores Inc.'s August sales exceeded analysts' estimates after discounts lured shoppers from department stores and malls facing what may be the worst back-to-school season in seven years.
Jon Fisher, a Minneapolis-based manager who oversees $1.5 billion in assets at Fifth Third Asset Management, including Target shares: "It's going to be a tough Christmas. It's the same environment."
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Update:
"NEW YORK (AP) -- Wall Street slid for a second straight session Friday on news that the economy shed jobs for the eighth straight month in August and at a faster-than-expected pace.
The Labor Department said payrolls shrank by 84,000 last month, more than the 75,000 economists predicted, and higher than the 51,000 jobs lost in July. The unemployment rate rose to a five-year high of 6.1 percent from 5.7 percent.
In miday trading, the Dow Jones industrial average fell to 11,163.97. Stocks turned in a dismal performance on Thursday, with the Dow Jones average plunging more than 340 points in a sell-off underpinned by disappointing economic news and lackluster sales reports from retailers."
Update: Dow
