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Us Jobless Soars As Companies Squeeze Workers

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http://business.timesonline.co.uk/tol/busi...icle6818595.ece

Private employers cut 298,000 American jobs last month, far above economists’ expectations, and squeezed more work out of staff over fewer hours.

The ADP Employer Services report on jobless numbers in August exceeded the 250,000 staff cuts economists had forecast.

Employees who kept their jobs worked even harder over shorter hours, according to the Labor Department today.

Revised productivity figures, which show the amount of output per hour of work done, rose by an annual rate of 6.6 per cent in the second quarter, the biggest rise in nearly six years.

Labour costs fell by 5.9 per cent as a result of the rise in productivity. It was the largest drop in costs since the second quarter of 2000.

The department had estimated last month that second quarter productivity was up by 6.4 per cent and costs down by 5.8 per cent.

The ADP Employer Services report is published two days before the US Labor Department's own figures, which include Government jobs and are usually less dire than those reported by ADP.

Macroeconomic Advisers, the economics consultancy that works with ADP on the employment report, said that it expected the Government to have added about 2,000 workers, taking the number of job losses to 296,000 across the US workforce in August.

The unemployment rate is expected to rise to 9.5 per cent in August, up from 9.4 per cent in July, and hit 10 per cent by year-end.

The Labor Department said last month that 247,000 jobs were lost in July.

The ADP Employer Services report today revised down the number of jobs lost in July from 371,000 to 360,000.

Did the economists underestimate the total because we are having a jobless recovery?

Didn't the US bank stress tests set the unemployment rate around the 9.4% for the end of this year and yet it appears it will be 10%!

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http://business.timesonline.co.uk/tol/busi...icle6818595.ece

Did the economists underestimate the total because we are having a jobless recovery?

Didn't the US bank stress tests set the unemployment rate around the 9.4% for the end of this year and yet it appears it will be 10%!

http://www.housepricecrash.co.uk/forum/ind...howtopic=113749

8.8% in the 'expected' scenario

and...

Nope sorry dude.

That figure is for what they expect.

The 'worst case' scenario is:

Examiners used an "adverse scenario" of a 3.3 percent contraction in the economy this year, and an average unemployment rate of 8.9 percent in 2009 and 10.3 percent in 2010. Economists see a 2.5 percent drop in output this year, and unemployment rates of 8.9 percent in 2009 and 9.4 percent in 2010, according to a Bloomberg News survey.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

So the annualised decline in gdp was 6.9% for the first quarter and even in the worst case scenario they have to break even on job losses for the rest of the year. :ph34r:

Maybe they outsourced the stress testing to Darling?

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