I was watching business news and they wera talking bout reaons for optimism being:
- Productivity gains
- Profits are increasing.
How is that going to help the 2.6 million or so that lost jobs since Bush was elected. Someone please shed some light.
if companies are profitable they will make capital purchases..put more in R&D, more infrastructure spending etc etc. this in turns means a ripple effect for jobs in other companies who are supplying to them whether it is services or goods.
here is a good article for you to read.
More than 120,000 new jobs were created in the US in October, new figures show.
The number was twice what economists had predicted, bringing the jobless rate to 6% from 6.1% the month before.
The news comes a day after the weekly figure for new unemployment benefit claims fell below 350,000 for the first time since January 2001
Alright thanks Fraudia. I read a few of thosse similar articles in US papers as well. Now can you also explain this as well in the light of above. I read this here
On Friday, the Labor Department announced that employers added a net 126,000 payroll jobs in October. In all, the economy has added 286,000 positions over the last three months — the best showing since early 2001.
But 2.4 million more jobs would be needed to regain all the ground lost since March 2001, when the last recession began. When, or even if, those positions will come back is far from clear.
Here’s the problem: Many companies like the notion of a jobless recovery. The leaner they can keep their U.S. payrolls — by using overtime, automating the production process and outsourcing jobs overseas — the higher their profits.
Analysts say 150,000 jobs must be created every month just to keep pace with population growth. Only if more than that number are created would the unemployment rate, currently 6%, continue to fall.
Jagga
I see where you are coming from, and companies will try to keep payrolls low and outsource where possible, but there is only so much people can do ..even with automation and increased productivity. eventually companies will need to hire ppl, if not in the positions that were eliminated earlier, than in some other positions.
when the industrial age started people thought they would lose jobs due to automation too, but they had demand in other areas.
I dont see the heyday of mid to late 90's returning anytime soon, but things will improve..how much is anyone's guess right now.