US Companies Decreased Payrolls by 79,000 in June

July 2, 2008

 

Excerpts from Bloomberg.com:

 

July 2 (Bloomberg) — Companies in the U.S. cut an estimated 79,000 jobs in June, a private survey based on payroll data showed.

The decrease was larger than forecast and followed a revised gain of 25,000 for the prior month that was less than previously estimated, the report from ADP Employer Services showed. Last month’s drop was ADP’s largest since November 2002.

 

The biggest housing recession in a quarter century and record oil prices are prompting an increase in firings as companies brace for falling demand. The government tomorrow may report that total private and government payrolls fell in June for a sixth decline this year, according to the median forecast in a Bloomberg News survey.

 

“Clearly, there is more weakness to come in the labor market,” said Anna Piretti, a senior economist at BNP Paribas in New York. “Risks are to the downside” for tomorrow’s jobs report.

 

Our perspective:

 

This morning, the NY Times reported that they see they see Deepening Cycle of Job Loss Seen Lasting Into ’09

Experts say the troubles dogging the economy will be stubborn, leaving in place a combination of tight credit and scant job opportunities perhaps well into next year.

That’s not good news.

Steps must be taken to start turning the tide. Strong leadership must come from one of the presidential candidates that will provide a vision saying “ I am going to take us out of this mess.” This will help to restore confidence. We saw that with FDR. He had a vision and he brought everyone together to rebuild America.

Now it is our turn. What are we doing to bring a better America to our children, the future rest in our hands?

Let us know your thoughts?

Email george@hbsadvantage.com

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