US job losses are double expected figure

[Peikko 1,575]

President Barack Obama: the job loss data has fuelled fears that the US economic recovery will not bring about a revival in the job market. Photograph: Pablo Martinez Monsivais/AP Employers in the US shed twice as many jobs as expected in July, fanning fears that the recovery in the world's largest economy will not see a revival in employment.

The US government said 131,000 jobs were lost overall, compared with forecasts for a 65,000 fall. The drop was mainly due to work finishing for temporary staff hired by the government to conduct its census. But private hiring was also weaker than expected.

Economists polled by Reuters ahead of the monthly non-farm payrolls data, forecast that private-sector jobs would rise by 90,000, but in the event only 71,000 were added.

At the same time, June's overall drop was revised to a far steeper 221,000 from 125,000.

The data sparked a rally in government bonds, seen as safer investments when the economic picture darkens. Crude oil futures dropped on the prospect of weaker demand from the US market and stock indices also fell, including the FTSE 100 in the UK.

"This employment report only reinforces a sluggish recovery. Private sector job and income gains are not weak enough to point to a renewed downturn, nor are they strong enough to suggest the recovery is free of such risk," said Stephen Gallagher, economist at Société Générale.

Within July's drop, 143,000 jobs were census staff who were laid off, but there were also a further 59,000 public sector job losses as the US government mirrored its counterparts around the world in tightening budgets. Economists voiced concerns that the private sector outlook was also gloomy, suggesting that Americans will remain wary about their job prospects and do little to power the recovery.

"This is not good news for consumer confidence or spending and will intensify concerns about the pace of the recovery at the Federal Reserve," said James Knightley economist at ING Financial Markets.

"Given the recent data flow on activity we doubt we will see a surge in private-sector employment over the next couple of months, which implies a further fall in total payrolls is probable next month."

The sharp drop in jobs, which follows news of slowing economic growth in the US, is likely to prompt discussions at the Federal Reserve over implementing more quantitative easing – a way of pumping money into the financial system. The central bank's Federal Open Market Committee (FOMC) meets on Tuesday and Fed chairman Ben Bernanke has already hinted to markets that its programme of asset purchases could be resumed.

"The big picture is unfortunately that the downtrend in US economic growth is once again obvious, and these figures will probably do little to deter the FOMC from ultimately implementing fresh stimulus in the near future," said Nick Beecroft at Saxo Bank.

"I'd expect them to reinstate a quantitative easing programme - buying either US Treasuries or mortgage-backed securities - either at next week's meeting, or more likely at the following meeting on 21 September."

Still, there was some comfort for president Barack Obama as he battles to ensure the economic recovery is accompanied by job creation. The unemployment rate held steady at 9.5% in July, defying expectations that it would rise to 9.6%.

But the steady rate, which is measured by the government's household survey, reflected the fact that employment fell 159,000 while at the same time the workforce shrunk by 181,000 as people stop looking for work for various reasons.

"The fact that so many people are leaving the workforce is not positive in that it suggests people are giving up looking for work due to the lack of jobs," said Knightley.

[mawilson 2,133]

Barack looks like he has aged 10 years in 2.

[Ban Hammer 13,206]

Barack looks like he has aged 10 years in 2.

that's bush's fault too!

[Peikko 1,575]

Soon be time to buy some shares again! I'm ####### at the stock market game - and my retirement depends upon it

[mawilson 2,133]

Soon be time to buy some shares again! I'm ####### at the stock market game - and my retirement depends upon it

Buy if you have faith in this recovery, sell otherwise.

[Peikko 1,575]

Buy if you have faith in this recovery, sell otherwise.

I have some cash I need to convert into investments - I'm sort of thinking that the recovery is going to stall for a bit and shares will go down - the question is how far down will they go? Ho hum

[^_^ 5,021]

I think the recovery will stall, the teabagger militias will overthrow the government and replace the US dollar with the Freedom Dollar and all your stocks will belong to them.

[Peikko 1,575]

I think the recovery will stall, the teabagger militias will overthrow the government and replace the US dollar with the Freedom Dollar and all your stocks will belong to them.

Well, that's one possibility:unsure:

[I AM NOT THAT GUY 5,715]

I think the recovery will stall, the teabagger militias will overthrow the government and replace the US dollar with the Freedom Dollar and all your stocks will belong to them.

Are you channeling Neil's a Bore?

[mawilson 2,133]

I have some cash I need to convert into investments - I'm sort of thinking that the recovery is going to stall for a bit and shares will go down - the question is how far down will they go? Ho hum

Well you can go with "safe" investments, such as tax-free munis (municipal bonds). They don't

pay much though - maybe 3% - but at least you won't lose your principal even if they default.

You can get 8-10% if you buy riskier corporate bonds. Or you could buy some safe dividend stocks.

[^_^ 5,021]

Are you channeling Neil's a Bore?

Don't think they're gonna forgive you just because you've morphed into one of them, Mr. Johny Come Lately. You supported single payer healthcare once, your perfidy has been noted and when the teabagger militias come to your neck of the woods, they will be making a special house call just for you.

Or you could buy some safe dividend stocks.

Name some please. I will do my own research too but still wanna know which ones you think of.

[Peikko 1,575]

Don't think they're gonna forgive you just because you've morphed into one of them, Mr. Johny Come Lately. You supported single payer healthcare once, your perfidy has been noted and when the teabagger militias come to your neck of the woods, they will be making a special house call just for you.

Name some please. I will do my own research too but still wanna know which ones you think of.

I'm not sure I would share my hard won information on a message board - maybe pm?

[^_^ 5,021]

I'm not sure I would share my hard won information on a message board - maybe pm?

mawilson doesn't pm.

besides, with access to the right screening tools thats not a difficult list to come up with.

i just happen to not have access to the right tools.

[Peikko 1,575]

mawilson doesn't pm.

besides, with access to the right screening tools thats not a difficult list to come up with.

i just happen to not have access to the right tools.

Nor do I

[I AM NOT THAT GUY 5,715]

Don't think they're gonna forgive you just because you've morphed into one of them, Mr. Johny Come Lately. You supported single payer healthcare once, your perfidy has been noted and when the teabagger militias come to your neck of the woods, they will be making a special house call just for you.

I am a firm believer in the premise, that if you break it, you buy it. I still think the only solution to the healthcare issue is to nationalize the whole sector, since they are already micromanaging the whole thing.