Posted by Tina
I'm not an economist but I do speak and comprehend English. This article spoke to me about the current state of the economy in the language I understand. I thought you might find it interesting and illuminating.
The jobless-recovery theme re-emerged on Friday with the arrival of a disappointing employment report. The daunting number was the unemployment rate, which jumped from 9.4 percent in July to 9.7 percent in August. This is a big-versus-small-business issue. Sort of the haves versus the have-nots. ** The large companies are gradually recovering as a result of major cost-cutting, inventory reduction, and a lean-and-mean return to profitability and high productivity. So the payroll survey registered a 216,000 job loss, the smallest drop in over a year. ** However, the household survey, which picks up small, owner-operated, LLC/S-Corp-type businesses, registered a devastating 392,000 job loss, which follows losses of 155,000 and 374,000 in the prior two months. This is the source of the unemployment-rate jump, as 466,000 newly unemployed were scored in the report. ** So while the big companies are getting healthier, the smaller firms are being left in the dust. Unfortunately, small businesses provide most of the new job creation in the United States.
There are many of us that believe there cannot be a sustainable economic recovery without the creation of jobs.
It is not only the number of Americans without jobs, this also includes many educated and skilled workers that are currently underemployed and their numbers are not reflected in the unemployment rate. Small businesses will incur a major additional expense if the health care reform is passed in its current state. Many small businesses have expressed they would be unable to continue with additional expenses. Someone in our govt. needs to address this issue.
If the job market does not improve, there are those that believe we may be in for a double-dip recession.