Hiring May Have Cooled, Factories Slowed: U.S. Economy Preview

[marmar]

from Bloomberg:



Hiring May Have Cooled, Factories Slowed: U.S. Economy Preview

By Shobhana Chandra

March 2 (Bloomberg) -- The unemployment rate in the U.S. probably rose in February as hiring slowed, and manufacturing may have contracted for the second time in three months, economists said before reports this week.

The jobless rate rose to 5 percent from 4.9 percent, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's March 7 report. Payrolls probably expanded by 25,000, short of the roughly 100,000 needed to keep pace with increases in the labor force.

Fewer jobs, rising fuel costs and falling property values are causing consumers to lose confidence and limit spending. The slump in demand is prompting factories to cut production, pushing the economy closer to a recession and making it more likely the Federal Reserve will cut interest rates further.

``Hiring will slow in coming months,'' said Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts. ``The parts of the economy that are doing well aren't enough to offset the parts that are doing badly.''

The projected increase in payrolls last month would follow a decline of 17,000 jobs in January, the first decrease in more than four years. The pace of hiring over the past two months would be the worst start for any year since 2003.

Factory payrolls shrank by 25,000 workers, reflecting automakers' efforts to trim costs, economists project the jobs report may show. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aXHDe1nkJg.c&refer=home

[Hydra]

1. Let's see how long this goes before people strat screaming n/t

[Frustratedlady]

2. Students will be hitting the streets before long...

There will be a lot of competition for any seasonal/short term jobs that are available.