Did You Know or Want to Know the Following June 2010 Economic Status?

Since December 2007, the private-sector has lost over 7.9 million jobs.

• 14.6 million people were unemployed in June
• 11.2 million people have given up their search for a full-time job
• This is an underemployment rate of 16.5 percent.

 Each month the economy has to generate over 100,000 jobs to keep pace with the population starting their work careers or 3 percent growth to create enough jobs just to keep up with the population increase.

 

Bringing down the unemployment rate:

                     Generate over 200,000 jobs each month

 Bureau of Labor Statistics: For June 2010

                     Total nonfarm payroll employment declined by 125,000

                     Private-sector payroll employment edged up by 83,000

 Not keeping pace with population entering workforce

 

 At 5% economic growth, an 8% unemployment rate goal would not be achieved until 2013. How long before the underemployed rate is reduced in half?

                   Our economic growth is around 3% and trending down!

 

 Bureau of Economic Analysis:

                  In the fourth quarter of 2009, real GDP increased 5.6%

                 The first QT. 2010, real GDP increased 3.0%

  

Other Facts to consider:
The Labor Department indicated the nation's total payroll was actually reduced by 125,000 in June 2010

In June, for private workers, their workweek and earnings dropped. This is a sign that there is less work for the employed. No need to hire.

Consumer confidence fell in June, a significant drop since May.

Consumers are worried about their job

Businesses are worried about hiring

 

“Mortgage rates moved downward again last week as the economic recovery showed further signs of slowing. The respected ISM Manufacturing Index dropped last week. While the index does remain above 50, which indicates that manufacturing is growing, the dip is another sign that the manufacturing-led recovery is losing some of its momentum.” By: Don O’Dell, Allen Tate Mortgage

 

 Plan for the worst and hope for the best – the purpose of the above is to illustrate that the “numbers” do not distort the trends only politicians do. Planning for the worst means you should extend the difficult forecast planning beyond 2011. The economy doesn’t turn on a dime and the current trend is slower and downward.

 

The Bureau of Economic Analysis will publish an advance estimate of the 2nd QT 2010 real GDP on July 30th. Mark your calendars.