Jobs in U.S. Unexpectedly Drop, Bolstering View Economy is in a Recession

[marmar]

from Bloomberg:



U.S. Unexpectedly Lost 63,000 Jobs in February (Update3)

By Shobhana Chandra

March 7 (Bloomberg) -- The U.S. unexpectedly lost jobs in February for the second consecutive month, adding to evidence the economy is in a recession.

Payrolls fell by 63,000, the most in five years, after a revised decline of 22,000 in January, the Labor Department said today in Washington. The jobless rate declined to 4.8 percent, reflecting a shrinking labor force as some people gave up looking for work.

``All the lights are flashing red,'' said Nariman Behravesh, chief economist at Global Insight Inc. in Lexington, Massachusetts, in an interview with Bloomberg Television. ``We're in a recession. I don't think there is any doubt about it at this point.''

Treasury notes soared after the report on concern that the weakening labor market, combined with lower home prices, higher fuel bills and a global credit squeeze will force consumers to further reduce spending. Minutes before the figures were released, the Fed said it will expand two short-term auctions this month to $100 billion to address ``heightened liquidity pressures'' in markets.

Traders now anticipate Fed Chairman Ben S. Bernanke and his team will cut their benchmark interest rate by at least three quarters of a percentage point at or before their March 18 meeting.

Worse Than Anticipated

Economists had projected payrolls would rise by 23,000 following a previously reported 17,000 drop in January, according to the median of 76 forecasts in a Bloomberg News survey.

The jobless rate was forecast to rise to 5 percent from January's 4.9 percent, with projections ranging from 4.8 percent to 5.2 percent. ......(more)

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

[El Pinko]

1. "Unexpectedly"?

I expected it to be worse. I'm breathing a sigh of relief that it wasn't a lot worse. (or course the revised numbers several months later always are...)

[leftofthedial]

2. when even their dishonest, lying propaganda numbers are

"unexpectedly worse," things must REALLY be bad.

[gratuitous]

4. Yeah, "unexpected"?

I guess nobody saw Melanie Morgan's firing coming?

[mother earth]

3. Don't forget they aren't counting those of us who were dropped

from the unemployment nos., but are still unemployed, they don't count those who had medical insurance along with unemployment benefits & are now cut off from both. These numbers are a joke, this is how bad the lying is.

The republicans are blatant liars and our dems don't have the backbone to look out for us by insisting unemployment benefits be extended. Let them eat cake! Well, we know how that ended, so the lies MUST continue...

[BrklynLiberal]

5. "Unexpectedly" only to those living in another plane of reality.....

Or perhaps to those who cannot bring themselves to admit that the damn emperor is friggin naked!!!

[ProfessorGAC]

6. Which Economists?

I want names! When the press says "economists" (plural) they should say which one. In fact, it's probably two guys at Goldman Sachs or at Treasury who have good jobs but don't know their ass from their hat.

Anybody who is surprised by any of this economic behavior is an idiot.
The Professor