Friday, December 7, 2012
Unemployment rate falls to 7.7% as job growth weathers Hurricane Sandy
http://www.latimes.com/business/money/la-fi-mo-economy-jobs-20121206,0,4378298.story. Due 10 Dec 2012...(2nd article). What does the author cite as reasons for the low unemployment rate? Is this good or bad??
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Reasons for the low unemployment rate would be the start of the holiday season. Retailers are hiring many people for the holidays. However, the hurricane did not affect the unemployment rate as the analysts had expected. In addition, construction cut back on their payroll as well as, manufacturing cut back on workers. I believe the unemployment rate increasing because of the holidays is good. The more money America spends, the better the economy will become.
ReplyDeleteMost people would think that the recent hurricane would hurt job growth, but it surprisingly seemed to have no effect on it. The author states that the reason for the low employment is because of the strong hiring by retailers, for the holiday season. Employment is always strong during the holiday season, but this year was the strongest in the past 5 years. Retailers hired 53,000 people in the past month, while manufacturing and construction cut jobs. This is good because retailers are hiring more people, and expecting more customers to spend money. Also, Hurricane Sandy had no strong effect on the unemployment rate, which shows that the country is getting stronger.
ReplyDeleteThe author cites the reasons for the low unemployment rate as being rooted in the "unusually strong hiring in retailers" that is occurring as a result of the approaching holiday season. Clothing retailers appear to have hired the largest portion of these new employees, with about 50,000 out of 175,000 jobs going to this section of retail. Though these growths in employment are positive and are able to compensate for the growing population, these trends certainly do not mean that we will soon come out of this unemployment crisis. The article also offers a slightly depressing reason for this job growth - the shrinking job market. Sure, jobs were created. However, another reason these numbers seem so positive is actually due to a shrinking labor force. Meaning, people are leaving the market, causing these numbers to be somewhat misleading. In any case, these numbers are optimistic, and reflect progress.
ReplyDeleteThe author states the drop in the unemployment is cause by the holiday season, but this serves as a double-edged sword. This is great news because it reflect the fact that consumer confidance is returning to the market, which allows retailers to hire more workers. But this increase in hiring is only tempory. As anyone in the retail buisness knows, after the holiday season, they begin to let go most of the workers they hired to cover the holiday madness. This will lead to an increase in the unemployemnt, but really, no one should be shocked. What the economy needs is a steady supply of more and newer jobs, and stop reling on the occasional holiday present.
ReplyDeleteJaime Caldaro
ReplyDeleteThe hiring of workers during holiday season has increased employment. Most of the hiring was done by retail industries. Hurricane Sandy also didn't affect the economy as much as experts expected. This is a good thing for short run growth.
The author states that the low unemployment rate is caused by the increased hiring of workers in retail stores due to the holiday season. The article even states that this year had the most holiday hirings in the past five years. So, luckily, more people are getting jobs, thus showing that retailers are expecting more customers to come out and shop. This is good, but hopefully they stay hired after the holiday season, where most retailers cut employees. If they don’t, then the employment rate will just increase again, and have more people without jobs.
ReplyDeleteThe article talks about how unemployment has fallen down due to Hurricane Sandy. like this because it works out good for everybody but usually after the holidays retailers cut employees. The retailer industry is the cause of most of the hirings. The unemployment rate will probably rise again due to the fact of the employees getting cut after the holidays but hopefully this is not the case.
ReplyDeleteThe author speculates that the cause of this low unemployment rate is because of the early start to the holiday shopping season this year mainly in the clothing stores and retail centers. The author also says that even with the disruptions of hurricane Sandy we still added an approximate 146,000 jobs which was unexpected. This is a good thing but we wont know until the holiday seasons are over when workers start being laid off again.
ReplyDeleteThe author states that the lower unemployment rates are a result of the holiday season. Many retail employers will hire new employees in preparation for the influx of customers and holiday shoppers associated with the holidays. Despite Hurricane Sandy, the author claims that about 146,000 jobs have been added to the economy. However, the decrease in unemployment is probably ephemeral and is likely to increase after the holidays.
ReplyDeleteThe unemployment rate according to the author was low because there was an unexpectedly large amount of jobs added over the month because of the holidays. Most was strong hiring by retailers and that alone had added 53,000 jobs. Although the unemployment rate is low now, the outlook is still cloudy because of the fiscal cliff. Many companies are holding back on hiring until they get a clearer picture.
ReplyDeleteThe author says the lower unemployment rates are due to the holiday season. Many employers will hire employees to prepare for more customers/shoppers associated with the holidays. Even though we recently had a hurricane, the author claims that about 146,000 jobs have been added. However, the decrease in unemployment is probably going to increase after the holidays.
ReplyDeleteThe decrease in unemployment numbers can be attributed to the holiday season shopping madness; the influx of consumers and the temporarily expanded job market. Superficially this may seem like the answer that the country has been waiting for, however, it is only temporary. Just because there was an increase in both employees and consumers, doesn't mean that it will last. So while it is good short term, we might not see it in the long run.
ReplyDeleteThe cause for the unemployment rate falling is largely due to the hiring of seasonal workers. Even though we had a hurricane, it didnt affect the employment rate. I do not think this number is reliable because after the holidays are over, a lot of workers will be laid off.
ReplyDeleteThe author cites that the cause of the lowering unemployment rate is due to the holiday season. As this time of the year approaches, companies hire more employees to adequately serve the greater number of customers that' this time of the year brings. This can be seen from a positive and negative outlook. If we analyze the situation positively, the fact that companies are confidently hiring employees for the holiday season means that it is expected for American consumers to spend a substantial amount of money for the holidays. Pessimistically, we know that all good things do indeed come to an end and this will certainly be one of them. After the holidays will the unemployment rate rise again? Probably, it is only logical when we analyze the numbers.
ReplyDeleteThe author of the article states that the reason for the drop in the unemployment rate is because of the holiday season. Many retail stores hire many people to cover the crazyiness that occurs. The problem with this however is that after the holidays, they will start laying off the new workers. People believed that Hurrican Sandy would hurt the job growth but suprisingly it had no effect.
ReplyDeleteThe author states that the lower unemployment rates are a result of the holiday season. Many retail employers will hire new employees in preparation for the influx of customers and holiday shoppers associated with the holidays. Despite Hurricane Sandy, the author claims that about 146,000 jobs have been added to the economy. However, the decrease in unemployment is probably ephemeral and is likely to increase after the holidays.
ReplyDelete-Jacob Hochman