What you need to know today to survive and thrive in the recession.
“What if the job losses this time around aren’t temporary, the ‘ebb’ part of the ebb and flow of the business cycle?” Caroline Baum asks. “What if employers are hacking away at their permanent workforce?” (Bloomberg)
The recession has slashed U.S. output of planet warming gases and puts the country on track to reach President Barack Obama’s short-term emissions goal, but cutting the pollution further will take more effort as the economy recovers. (Reuters)
One of the oddest phenomena of the boom years was how kitchen appliances quickly morphed into sexy, high-maintenance trophies. These high-flying days flickered out when the real estate market imploded, but they may come back. (The Big Money)
President Barack Obama has put together a grab-bag program to combat unemployment, which resembles the approach taken by recent presidents of both parties, who have leaned heavily on tax cuts to spur job creation. (Associated Press)
“While some upper-middle class marriages may be strengthened, on the margins, by the recession, working class marriages are more likely to be weakened, even as the continued decline of the manufacturing sector makes men without college degrees less marriageable to begin with,” writes Ross Douthat. (New York Times/Evaluations)
More consumers are turning to processed foods, either prepared, frozen or canned and often filled with fat-generating calories, refined grains and sugars. Experts said that’s making more Americans chubbier and prone to obesity-related illnesses such as diabetes in what has been dubbed “recession fat.” (Chicago Tribune)
In a poll of more than 1,000 Americans conducted late last week, 84% of those surveyed believe that the economy is still in recession. (CNN/Money)
Many young workers say the economic crisis has made their generation more conservative, which is reflected in not only their financial decisions, but has also made them less inclined to “job hop.” (Boston Globe)
Most of the struggling homeowners who have enrolled in the Obama administration’s marquee mortgage-relief program still haven’t proved they qualify for help, illustrating lingering weakness in the effort to aid distressed borrowers. (Washington Post)
“This dichotomy of record profits and bonuses on Wall Street while you have real unemployment of 15 percent-plus in this country is very striking,” Financial Crisis Inquiry Commission Chairman Phil Angelides said yesterday. (Huffington Post)
If you come across a good article or blog post about the recession pass it on. To receive Recession Briefing in your inbox, subscribe to our daily email.
By Thomas Penny Dec. 9 (Bloomberg) — Chancellor of the Exchequer Alistair Darling said the U.K. economy will recover from its longest recession on record next year as the government’s stimulus measures take hold. The finance minister forecast growth in 2010 to between 1 percent and 1.5 percent, the same as he estimated in March. He expects growth of about 3.5 percent in 2011 and 2012. For 2009, Darling forecasts the economy will shrink by between 4.75 percent, deeper than his March projection for a contraction between 3.75 percent and 3.25 percent. Trailing in opinion polls before an election that he must hold by June, Prime Minister Gordon Brown is balancing the need to clamp down on a record budget deficit while extending support to voters struggling in the deepest recession since 1980. “We must continue to support the economy until the recovery is established,” Darling said in a speech in Parliament in London today. “The choices are between going for growth or putting the recovery at risk. To reduce the deficit while protecting front-line services or cuts, which put these services in danger.” Darling, delivering his pre-budget statement, will announce his deficit projections later in the speech. In March he expected a shortfall of 175 billion pounds ($285 billion) in the current fiscal year, about 12 percent of gross domestic product and the most in the Group of 20 nations. Tax Plans He’s also planning to raise taxes on bonus pay earned by bankers and to maintain spending on health and education programs popular with voters, Treasury officials say. He confirmed he’d return value added tax to 17.5 percent at the end of this year from 15 percent. He also extended tax relief on empty properties, cut duties on bingo gaming and raised the basic state pension 2.5 percent from April. He also will increase disability benefits by 1.5 percent. Brown’s Labour government and David Cameron’s Conservatives both have promised measures to bonus payments in the City, London’s financial district. Where the two parties diverge is on just how quickly the government should curb the deficit. “We can’t solve the problem of the deficit straight away, but what there’s an absence of is a credible plan,” Conservative leader David Cameron said yesterday. “I don’t think anyone’s going to be impressed with a plan that doesn’t at least have some early action in it.” To contact the reporter on this story: Thomas Penny in London at tpenny@bloomberg.net
Read more from the original source:
Darling Says U.K. Economy Will Recover From Recession Next Year, Grow 1.5%
WASHINGTON – Le nombre de nouveaux travailleurs licenciés désirant obtenir les prestations de chômage a augmenté plus que prévu la semaine dernière, après avoir baissé pendant cinq semaines consécutives. Malgré cette augmentation, les demandes ont baissé régulièrement depuis cet été, un signe que les suppressions d'emplois sont à ralentir et à l'embauche pourrait reprendre dès l'an prochain au milieu d'une reprise économique générale. Demandes initiales d'assurance chômage a augmenté de 17.000 à une 474000 corrigées des variations saisonnières, le département du Travail a annoncé jeudi. Qui a été supérieur aux attentes des analystes de 460.000 nouvelles demandes. Des réclamations ont été en partie gonflé par un bond suivant la semaine de vacances de Thanksgiving, alors que de nombreux bureaux de chômage de l'État sont fermées, un analyste du département dit. Licenciements saisonniers dans l'industrie de la construction a également joué un rôle.
New Jobless Claims Rise to 474,000 After Falling For 5 Straight Weeks
WASHINGTON — The number of newly laid-off workers seeking jobless benefits rose more than expected last week, after falling for five straight weeks.
Despite the increase, claims have fallen steadily since this summer, a sign that job cuts are slowing and hiring could pick up as soon as early next year amid a broad economic recovery.
Initial claims for unemployment insurance rose by 17,000 to a seasonally adjusted 474,000, the Labor Department said Thursday. That was above analysts’ expectations of 460,000 new claims.
Claims were partly inflated by a surge following the Thanksgiving holiday week, when many state unemployment offices are closed, a department analyst said. Seasonal layoffs in the construction industry also played a role.
Economists closely monitor initial claims, which are considered a gauge of the pace of layoffs and an indication of companies’ willingness to hire new workers.
The four-week average of claims, which smooths fluctuations, fell to 473,750, its 14th straight decline and the lowest level since September 2008.
Still, claims will have to fall to about 425,000 for several weeks to signal the economy is actually adding jobs, according to many economists.
The number of people continuing to claim benefits fell by 303,000 to 5.16 million, the lowest level since February. The total unemployment benefit rolls have fallen in 11 of the past 12 weeks.
But the so-called continuing claims do not include millions of people that have used up the regular 26 weeks of benefits typically provided by states, and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government.
About 4.6 million people were receiving extended benefits in the week ended Nov. 21, the latest data available. That’s an increase of about 130,000 from the previous week, and is partly due to an extension of benefits that Congress enacted last month.
The economy grew at a 2.8 percent pace in the July-September quarter and analysts say it is likely growing at a similar pace in the current quarter. But that is much slower than the average 6 percent rate in previous economic recoveries.
As a result, most economists expect the unemployment rate to rise in coming months and remain above 9 percent through the end of next year.
Federal Reserve Chairman Ben Bernanke said Monday that he expects “modest” economic growth next year. That should help push down the nation’s unemployment rate — now at 10 percent — “but at a pace slower than we would like,” he acknowledged.
The Labor Department last week said employers shed 11,000 jobs in November, much better than economists expected and below the 111,000 lost the previous month.
President Obama has the ability to focus on what is really important and not get sidetracked by the "talking point of the day" – a very important skill to have in our modern media driven culture.
Nashville_fan (Sent Wednesday, December 09, 2009 11:57 AM)
We just disagree, Nashville!! I've stated before he passed the ball to congress and never touched it again; we'll have to agree to disagree!!
The WH has also sent out so many conflicted statements on HCR, in addition to doing the same with other issues, such as the Afghanistan troop withdrawal plan!! It seems to me that what you believe to be one of his greatest assets, multi-tasking, has been his largest problem!!
And I do believe the focus should have been on the economy and the two wars first; I would have patiently waited until next year for President Obama to tackle HCR!! We've waited, as you know, for more than half a century!! Even FDR tabled HCR and focused on bringing the country back from the depression and The New Deal!!
Once President Obama stated HCR was his top priority this year, I supported him!! Not until today have I stated here I believed he should have tabled it until next year when the economy showed REAL signs of improvement and the average American FELT the recovery; we are a long way from that!! By taking on HCR first, the GOP, and quite successfully, have labeled Obama irresponsible by spending money we don't have, and albeit this is an asinine and FALSE accusation, it's caught on with many Americans!! And while I'm an avid supporter of HCR, as are millions of others, I believe Obama could have framed an argument to make those that have now turned on HCR to agree the economy, unemployment and the wars were justifiably, what his focus would be on during the first year of his administration!! And while he pushed the stimulus, he made assurances, if not promises, that it would create jobs very quickly, which has not happened!! Then there is that website, which reported the creation of new jobs in congressional districts that do not exist, over 440 bogus districts!! This is a public relations nightmare!! I don't believe for one second that President Obama did it intentionally, but heads should have rolled; they didn't!! And the 18 million they spent to create that website is another public relations disaster!!
Too many things at one time creates confusion and stalls accomplishments!! That’s just my opinion, which I believe I am entitled to!!
Year-over-year growth in U.S. overnight express and international priority services, along with cost cutting, helped bolster the company's bottom line, said Chief Executive Alan B. Graf Jr. in a press release. “Demand for our international services has improved significantly since the first quarter, particularly in Asia and Latin America,” he said.
The FedEx upside surprise is a particularly good sign for the economy because, unlike many other companies, it was not solely the result of cost cutting. Shares of the company soared after the announcement was issued late yesterday and probably will rise again today with the rest of the market.
In a speech yesterday before the Economic Club of Washington, Federal Reserve Chairman Ben Bernanke said, “We still have some ways to go before we can be assured that the recovery will be self-sustaining,”
But even the most cockeyed of optimists admit that a stiff headwind could send the economy into a tailspin again. Though unemployment dipped slightly in November from its nearly 27-year high, it has the potential to creep back up during the early part of 2010. Retail hiring in November climbed ahead of the holiday shopping season. Economic confidence, though, remains weak, with holiday spending down 21 percent over last year.
Good news from one company does not make a trend, but it certainly welcome nonetheless.
Jared Rosario