finance.yahoo.com/news/If-Private-Sector-Is-Hiring-cnbc-4039402657.html?x=0
cnbc On Monday August 16, 2010, 3:05 pm EDT One of the biggest obstacles to job growth may actually surprise most Americans: as fast as the private sector is creating jobs, the government is shedding them. Despite all the gloom and doom about the US economy, the private sector actually created 620,000 jobs over the past seven months, far faster than in the previous two recessions. "The private sector is adding jobs now-that's good--because a year ago we were sliding toward oblivion,' says Heidi Shierholz, an economist at the Economic Policy Institute. The problem, economists say, is that the pace of hiring in the private sector can't keep up with all the layoffs by cash-strapped federal and local governments. "It puts more pressure on the private sector to compensate for it," says Christian Weller of the Center for American Progress and the University of Massachusetts. Another complication: The economy shed so many jobs during the recession-nearly three million in the second half of 2008 alone-that even a sizeable gain in private sector hiring can't make much of a dent in overall unemployment. "How long will it take to get back to anything that looks like a recovery?" That level will certainly be breached in the coming months, as more Census jobs are shed and state and local governments follow through on job cuts.
"It's very likely they're going to continue to shed jobs well in 2011," says Chris Hoene, reserach director at the National League of Cities, which helped prepare the report. That may not seem a lot, but consider that government payrolls never shrank during or after the 1990-1991 recession. In the 2001-2004 recession-recovery period, payrolls were never more than 85,000 below their expansionary peak. "States didn't get their fiscal house in order when they had a chance," says Weller. "They thought the great, wonderful slush funds in the form of property taxes in the the boom years would never end." The gains in private sector jobs have been broad-based, covering manufacturing, travel, health care, education, business services and even retail. Not surprisingly, hard-hit sectors at the center of the 2008-2009 downturn-construction and financial--are still struggling, but nevertheless showing signs of stabilizing. Commercial construction, for instance, added 9,000 jobs in July. "Its going to be a long, frustrating, different experience," says David Resler, chief economist at Nomura Securities.
There is NO WAY the private sector added that number of jobs, that number is primarily based on the BLS (Bureau of Labor Statistics) number based on their faulty "birth/death" ratio. Every year it gets adjusted down by around ONE MILLION jobs, so this number is faulty logic at best. If the main premise of the article is this off base, the rest can't be relied on either.
Report Abuse " Commercial construction, for instance, added 9,000 jobs in July. " DIDN'T ADD, just look like, if those jobs were replaced, or jobs that were left by the deported inmigrannts.
Report Abuse "Despite all the gloom and doom about the US economy, the private sector actually created 620,000 jobs over the past seven months" It is completely misleading! Most of these so called "private" jobs are private sector jobs working on the government contracts.
Something along the lines of 20% of the wages paid to the H1B worker. That would do 2 things instantly: it would remove the cost advantage of hiring an H1B over an American worker AND it would generate much needed revenue for the government. Yes, the companies who utilize H1B workers would witch about how this would drive up their costs and all that. The idea is to raise the cost of an H1B to the point where it is no longer cheaper than hiring an American.
Report Abuse We have not made a car in this country in 50 years. We need a strong militery NOW China is drilling in the gulf of Mexico and soon they will be fishing off our coast line. Whats gonna happen if they have the miltery power to tell us to go screw? I would hit these crooks ->Communist with a tariff on everything and anything to pay down our debt. If that pice of junk on the shelf was 200 and they slap a tariff on it and made it 250 and you said let it sit untill next week and now its 200 bucks guess what China just made up the cost. Need to invest in Engineering math/science -> I can not see paying 40 k a year (tuition)for someone that can not create jobs. We really pushed this in the late 60's and early 70's and guess what we won the cold war.
Report Abuse How to get jobs going again healthcare must have true reform: A lot of good paying jobs today have to compete with a world job market, that's why a lot of jobs go overseas. To be more competitive for good paying job in the economy, especially private sector (there are already too many government workers with expensive benefits), eliminate employer benefits, such as healthcare and any kind of insurance, since our foreign counterparts don't get that. Don't worry, healthcare insurance would be cheaper once on open market because it will not be subsides by companies. Employers dictate what you get and only give you a couple of choices for insurance anyway. So you may have a higher deductible and pay a little more on premium initially but eventually it will go down because consumers will have more insurance companies to pick from, more choices to pick the coverage they need and want and besides Doctors and nurses have to eat too. The marketplace will create true healthcare reform and free employees and employers from this drag on the economy.
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