Three months into the year, the unemployment rate has already soared to 8.5 percent. The official figures showed that it was the highest level in more than a quarter-century, as the recession savaged the labour force.
The non-farm payrolls data presents that about 663,000 jobs disappeared from the American economy last month. Moreover between January and March, more than two million jobs were lost, according to the employment report, released Friday. So in all, the total number of layoffs swelled beyond five million jobs.
The job losses weren’t large and widespread across the services sectors, that is in contrast with the improvement in the manufacturing activity. The government expects and hopes the world economy stabilizes in the second half of the year, before the market recovers. So the government’s purpose to the downturn is being put to a strenuous test. Further president Barack Obama requested the US and the developing countries to spend more as part of a global rebalancing of demand in the years ahead.
Ben Bernanke communicated the purchases of government securities and debt were having beneficial effect, which is positive. We can conclude the decline in full-time jobs is very worse, there is a loss of 1,188,000 jobs but in spite of this there is an increase of 373,000 in people working part-time.
According to me, unemployment is something that is related to the economy. Especially in these hard times companies purpose is: continuing their activity. People haven’t enough time anymore in these outpaced society, and so part-time jobs grow in significance. The government has to recover the economy by supporting the market financially.
Written by Marie Maes
Source: The Financial Times
Article: US unemployment hits 8.5%
Published: April 3, 2009
By Krishna Guha in Washington
zondag 5 april 2009
As Economy Is Down, Vitamin Sales Are Up
“As Economy Is Down, Vitamin Sales Are Up” was the first title that really caught my eye.
I did not know what to make of it so I decided to clear it out.
The article tells us how people like Ms. Parham are skipping a (necessary) doctor visit due to the financial crisis or due to the loss of their job in order to make some savings.
Ms. Parham said she spent $50 a month on prescriptions for her asthma, allergies and other chronic problems. Now, she pays $6 a month for over-the-counter protein supplements and oregano oil capsules. Nothing to worry about according to you? I see it differently.
All right, it can be that those protein supplements are helping for her allergies and maybe for her asthma and even for her chronic problems, but I think it is very difficult to know where to draw the line here. Like I said, there is no problem when it helps for allergies and so on, but I fear she will take simply more supplements if those supplements do not help anymore in the near future.
There is even a distinct possibility that some people will become their own ‘doctors’ over time wich will cause only more bigger problems.
So I am convinced that those proteins can not be a substitute for traditional health care.
But a lot of consumers seem to be doing the same math as Ms. Parham.
Sales of vitamins and nutritional supplements have grown consistently for years and doctors are warning for the problems on long-term.
Others are even replacing fresh fruits and vegetables with fish oil capsules and antioxidant supplements. This is just too crazy.
Source: http://www.nytimes.com/2009/04/05/business/05vitamins.html?_r=1&ref=us
I did not know what to make of it so I decided to clear it out.
The article tells us how people like Ms. Parham are skipping a (necessary) doctor visit due to the financial crisis or due to the loss of their job in order to make some savings.
Ms. Parham said she spent $50 a month on prescriptions for her asthma, allergies and other chronic problems. Now, she pays $6 a month for over-the-counter protein supplements and oregano oil capsules. Nothing to worry about according to you? I see it differently.
All right, it can be that those protein supplements are helping for her allergies and maybe for her asthma and even for her chronic problems, but I think it is very difficult to know where to draw the line here. Like I said, there is no problem when it helps for allergies and so on, but I fear she will take simply more supplements if those supplements do not help anymore in the near future.
There is even a distinct possibility that some people will become their own ‘doctors’ over time wich will cause only more bigger problems.
So I am convinced that those proteins can not be a substitute for traditional health care.
But a lot of consumers seem to be doing the same math as Ms. Parham.
Sales of vitamins and nutritional supplements have grown consistently for years and doctors are warning for the problems on long-term.
Others are even replacing fresh fruits and vegetables with fish oil capsules and antioxidant supplements. This is just too crazy.
Source: http://www.nytimes.com/2009/04/05/business/05vitamins.html?_r=1&ref=us
2 million jobs lost so far in '09
The unemployment rate in the U.S. reached 8.5%, that’s the highest point in 25 years. In March this year there are already 663,000 jobs lost and since the beginning of 2008 already 5.1 million.
Since the beginning of 2009 there are already 2 million jobs lost. In March the job losses were felt in all areas of the economy, in the manufacturing and construction sectors as well as the business and professional services industries,… but they were not the only sectors, also the government trimmed some jobs. The only sectors that added some jobs were the education and the health care services, with 8,000 jobs.
Experts are not optimistic at all, the chief executive of Adecco Group, one of world’s largest employment staffing firm, said that many of the layouts announced in recent months have yet to be implemented. He also predicts that the job loss in April will be between 600,000 and 700,000 and after that in May and June between 300,000 and 400,000. Another expert said that the rising unemployment could influence the consumer confidence and spending, which would lead to more job cuttings.
Not only experts are worried also the government is taking steps to take care of the problems in the job market, with the earlier announced economic stimulus plan.
I think the growing unemployment rate is normal for an economic crisis because a lot of companies have problems and the first thing they do to lower their costs is fire people. But it’s the task of the government to resolve such situation by creating jobs. There is already a stimulus plan for the economy but I don’t think the plan is working because the unemployment rate is still rising so the government has to come with new solutions. But instead of creating jobs they also fire people…
Source:http://money.cnn.com/2009/04/03/news/economy/jobs_march/index.htm?postversion=2009040310
Since the beginning of 2009 there are already 2 million jobs lost. In March the job losses were felt in all areas of the economy, in the manufacturing and construction sectors as well as the business and professional services industries,… but they were not the only sectors, also the government trimmed some jobs. The only sectors that added some jobs were the education and the health care services, with 8,000 jobs.
Experts are not optimistic at all, the chief executive of Adecco Group, one of world’s largest employment staffing firm, said that many of the layouts announced in recent months have yet to be implemented. He also predicts that the job loss in April will be between 600,000 and 700,000 and after that in May and June between 300,000 and 400,000. Another expert said that the rising unemployment could influence the consumer confidence and spending, which would lead to more job cuttings.
Not only experts are worried also the government is taking steps to take care of the problems in the job market, with the earlier announced economic stimulus plan.
I think the growing unemployment rate is normal for an economic crisis because a lot of companies have problems and the first thing they do to lower their costs is fire people. But it’s the task of the government to resolve such situation by creating jobs. There is already a stimulus plan for the economy but I don’t think the plan is working because the unemployment rate is still rising so the government has to come with new solutions. But instead of creating jobs they also fire people…
Source:http://money.cnn.com/2009/04/03/news/economy/jobs_march/index.htm?postversion=2009040310
zaterdag 4 april 2009
Funeral cost-cutting boosts cremations
In the United States the recession has not only caused the fact that people are saving on living expenses but also on their dying expenses. More and more people economize on their funerals by not hiring limousines and cutting back on wakes and embalming. They also start to prefer cremations above burials, since a cremation can be up to $4000 cheaper.
Passing away is simply not a choice and you also can’t choose to postpone the expenses caused by it. And when there are no funds available for a traditional funeral, people choose something less expensive.
While the average funeral cost at Hollomon-Brown general Home and Crematory is $8500, the cost of a cremation is between $3000 and $5000. This has a clear effect on the figures National Vital Statistics Department shows. In 2006, about 34% of deaths in the United States were cremated in 2006. If we keep following the current evolutions that number will be 40% in 2010 and even 60% in 2025.
Some people just stick with funerals. Though they try to find measures to save some money. For instance it’s possible to have the visitation the same day of the funeral instead of having it the night before. This measure can save you up to $600. It’s also possible to not opt for a limousine service, which can save you $375. Another popular measure is skipping the viewing which makes it legal to skip the embalming also. Embalming can cost $500 to $700.
Moloney, co-owner of Long Island, N.Y.-based Moloney Family Funeral Homes says that he and his colleagues are doing everything they can to help bring down the costs. Though that’s not really simple because of the utility costs that are going up in the meanwhile.
This article really shows how big the impact of the economical crisis really is. How cruel it sounds, people are even forced to economize on burying family. Since I don’t have got any experience with arranging a funeral, I was really shocked when I saw the average price of $8500 for a funeral.
It’s a good thing that owners of funeral companies try to help out customers as much as possible by cutting in certain elements. Nevertheless a funeral stays really expensive and since you can’t really postpone it I hope the crisis will end soon.
Source: http://money.cnn.com/2009/04/02/news/economy/recession_funerals/index.htm?postversion=2009040212
vrijdag 3 april 2009
Honda makes cuts in North America
As a result of the bad sales figures, Honda has created a program of cost cutting measures in North America. Honda employs more than 30,000 workers in the US and has already announced 3,100 job cuts and a reduced production by 56,000 vehicles in Japan.The program includes five factors. First of all, they will cut pay. Secondly, factories will be closed for 13 days. Further, Honda will reduce its production by 62,000 vehicles. Fourthly, bonuses will be cut. Finally, an improved retirement packages will be offered, but basis pay will not be changed.
Comparing to March 2008, the sales figures in Japan were 24.5% higher than March 2009. But Honda is not the only carmaker who’s suffering from the financial crisis. The situation of other Japanese carmakers is worse. For example, the sales figures of the biggest carmaker of the world, Toyota, decreased 31.9%. Toyota took measures in the UK; employees have to work less hours. This resulted in a basis pay cut of 10%. Toyota also decided to close its production plant for four months.
The measures taken in the US are less drastic. Toyota only announced production cuts at several plants hoping to reduce its stock of cars.
According to me, Honda and other carmakers hadn’t no other choice to take these measures. These area is suffering from the economic crisis. Decisions have to be taken to make the situation of today better. These measures have bad consequences, but in my opinion everything is better than a failure of a carmaker.
Source: http://news.bbc.co.uk/2/hi/business/7975920.stm
zondag 29 maart 2009
New Economy in the Rural Northwest?
Booming timber towns with three-shift lumber mills are a distant memory in the densely forested Northwest. Now, with the housing market and the economy in crisis, some rural areas have never been more raw. Mills keep closing.
People keep leaving. Unemployment in some counties is near 20(!) percent.
Yet in parts of the region, the decline is being met by an unlikely optimism.
Some people who have long fought to clear-cut the region’s verdant slopes are trying to reposition themselves for a more environmentally friendly economy, motivated by changing political interests, the federal stimulus package and sheer desperation.
Some people who have long fought to clear-cut the region’s verdant slopes are trying to reposition themselves for a more environmentally friendly economy, motivated by changing political interests, the federal stimulus package and sheer desperation.
So far the good news. I understand the government is trying to help unemployed people by creating jobs, but this is a waste of money and effort according to me.
Before I turn down the whole idea, it might be easier to be something more specific about the plans.
The general idea is to create jobs and help the environment in one action.
Unemployed loggers are looking for work thinning federal forests, a task for which the stimulus package devotes $500 million; the goal is to make forests more resistant to wildfires and disease. I really can not believe it.
Unemployed loggers are looking for work thinning federal forests, a task for which the stimulus package devotes $500 million; the goal is to make forests more resistant to wildfires and disease. I really can not believe it.
$500 million… $500 million for thinning federal forests.
In a region with an unemployment of almost 20%, they are giving $500 million for thinning federal forests.
It is good that the government wants to invest in orde to give unemployed people a decent job of course and it is even better that they are helping nature in the same way but there must be other ways to invest those $500 million.
Even if we presume that you can put more than half the people of that 20 percent to work, those jobs will only be created on short-term. It would be much better to invest on long term.
Even if we presume that you can put more than half the people of that 20 percent to work, those jobs will only be created on short-term. It would be much better to invest on long term.
Protectionism or free trade?
The world is slipping dangerously into protectionism, threatening to strangle global economic recovery, the World Trade Organization said. WTO, in its stern advisory, also has communicated that the effect of protectionist measures by some countries would be devastating for our society. The effect: far-reaching consequences, for instance; measures will strangle the international trade and hinder the global recovery, are hard to avoid.
The WTO is bent to step up its monitoring of trade policies introduced by governments struggling to cope with the worldwide economic crisis.
WTO Director-General Pascal Lamy said free trade has suffered "significant slippage" this year as countries have established new barriers to import, for instance tariffs, subsidies and other measures designed to protect domestic industries.
Lamy also requested the government to avoid trade restricting and distorting measures otherwise the restrictions could gradually suffocate international trade.
Furthermore the WTO catalogued higher tariffs, new on-tariff barriers and more resort to trade defence measures, which increased by a quarter in 2008. Besides the actions of the major traders, that restrict the import of footwear, offer assistance to the domestic car industries, are hazardous. They will create a situation of uncompetitive industries and sectoral overcapacity.
As well as higher border barriers decrease the impact of fiscal and financial stimulus packages. These packages serve for stimulating the aggregate demand.
The WTO announced earlier this week that commercial activity was expected to shrink by 9 percent this year, the worst collapse since World War II.
According to me, we have to encourage free trade because of its advantages. First and foremost in case of free trade companies produce low-priced products and products of superior quality. Secondly the prosperity will increase. On the other hand protectionism boosts the employment and the ‘infant industry’, they have the possibility to develop into market leader.
Written by Marie Maes
Source: The Financial Times
Article: WTO warns against protectionism
Published: March 27, 2009
By Frances Williams in Geneva
The WTO is bent to step up its monitoring of trade policies introduced by governments struggling to cope with the worldwide economic crisis.
WTO Director-General Pascal Lamy said free trade has suffered "significant slippage" this year as countries have established new barriers to import, for instance tariffs, subsidies and other measures designed to protect domestic industries.
Lamy also requested the government to avoid trade restricting and distorting measures otherwise the restrictions could gradually suffocate international trade.
Furthermore the WTO catalogued higher tariffs, new on-tariff barriers and more resort to trade defence measures, which increased by a quarter in 2008. Besides the actions of the major traders, that restrict the import of footwear, offer assistance to the domestic car industries, are hazardous. They will create a situation of uncompetitive industries and sectoral overcapacity.
As well as higher border barriers decrease the impact of fiscal and financial stimulus packages. These packages serve for stimulating the aggregate demand.
The WTO announced earlier this week that commercial activity was expected to shrink by 9 percent this year, the worst collapse since World War II.
According to me, we have to encourage free trade because of its advantages. First and foremost in case of free trade companies produce low-priced products and products of superior quality. Secondly the prosperity will increase. On the other hand protectionism boosts the employment and the ‘infant industry’, they have the possibility to develop into market leader.
Written by Marie Maes
Source: The Financial Times
Article: WTO warns against protectionism
Published: March 27, 2009
By Frances Williams in Geneva
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