San José, CA – Average weekly earnings, adjusted for inflation, fell in July despite a drop in inflation. While average hourly wages outpaced inflation by one-tenth of one percent, or 0.1% ,in July, the average work week fell by three-tenths of one percent, or 0.3%. This meant the average weekly real earnings, which takes into account wage increases, inflation and the average number of hours worked, actually fell by two-tenths of one percent, 0.2%.
San José, CA – The decline in U.S. stock prices accelerated on Monday, August 5, with the broadest measure of large corporate stocks, the S&P 500, falling more than 160 points or 3%. Fears of a recession contributed to declines in stock prices around the world.
San José, CA – The latest jobs report released Friday, August 2, triggered new fears of a recession as the official unemployment rate rose to 4.3%. This pushes the three-month average unemployment rate up by more than one-half of one percent from its recent low. An increase of this size has been associated with a recession for the last 50 years.
San José, CA – On July 29, the Bureau of Economic Analysis released their report on Gross Domestic Product for the second quarter of the year, April to June. GDP went down at a 0.9% annual rate. This followed a decline of 1.6% in GDP in the first three months of the year.
San José, CA – On Wednesday, November 25, the U.S. Department of Labor reported that new claims for regular state unemployment benefits increased for the second week in a row, up 30,000 to 778,000. This is the highest level in five weeks and the first time since July with back-to-back increases. Adding in the weekly new claims for the federal Pandemic Unemployment Assistance or PUA for the self-employed and gig workers, almost 1.1 million people sought government aid in the recession.
San José, CA – On Friday, November 5 the U.S. Department of Labor released its monthly employment report for October, as President Trump faced defeat in the presidential election. The number of long-term unemployed, who have been out of work for more than six months, jumped by more than a million to outpace those recently laid off for the first time. The number of people collecting long-term unemployment under the federal Pandemic Emergency Unemployment Compensation or PEUC, and the state Extended Benefits, rose by almost 500,000 in the week of the unemployment survey alone.
San José, CA – On Thursday, October 15, the U.S. Department of Labor reported the biggest one week increase in new claims for unemployment insurance since late July. The latest report for the week ending October 10 saw 898,000 new claims for regular state unemployment insurance, up 53,000 from the week before.
San José, CA – On Friday, October 2, the U.S. Department of Labor reported that the official unemployment rate had dropped to 7.9% in September, from 8.4% in August. But of the almost one million people who left the official unemployment count, 70% stopped looking for work and did not find a job. This is because the government’s unemployment rate only counts those who are both without paid work and who are looking for work.
San José, CA – On Thursday, August 27, the latest report on unemployment insurance shows that the U.S. economy remains stuck in the worst recession since the Great Depression of the 1930s. While new claims for regular state unemployment insurance benefits did drop to a little, over 1 million for the week ending August 22, the federal Pandemic Unemployment Assistance or PUA for gig workers and self-employed rose the same week. Together the two stayed the same as the week before, and slightly higher than two weeks ago. One million new applications for state unemployment insurance is five times the rate at beginning of the year.
San José, CA – The U.S. stock market started October with back-to-back declines fueled by growing fears of a recession. On Tuesday, October 1, stocks fell by 1% or more following the Institute for Supply Management (ISM) reporting on their Purchasing Managers Index (PMI) for September. The index fell to 47.8, showing a contraction in the manufacturing sector – any report below 50 shows manufacturing shrinking, above 50 shows growth. The August PMI report at 49.1 also showed a drop in manufacturing, the first time in three years. The September reading showed that the decline was accelerating and was the lowest level for the PMI since the end of the last recession, more than 10 years ago.
San José, CA – The New Year is starting off much the way 2018 ended: with U.S. stocks being hammered again. On Thursday, January 3, the Dow Jones Industrial Average (DJIA) fell more than 600 points, the technology heavy NASDAQ fell more than 200, and the broad S&P 500 fell more than 60 points. All the averages fell more than 2% to put the year into the red.
San José, CA – Casting a shadow on the stock market are the growing number of economic statistics that point to a recession in 2019. Almost all mainstream economic forecasters expect economic growth to slow down in 2019 as the impact of the 2018 tax cuts wear off; the forecast is for 2.4% growth, about the same as in 2017. But few predict a recession.
Masao Suzuki is a leading member of the Freedom Road Socialist Organization (FRSO) who follows the economy. Fight Back! interviewed him on March 1, after another drop in U.S. stock market.
Another step toward first U.S. debt crisis in history
San José, CA – Today, Oct. 15, right-wing Republicans in the House of Representatives stopped the House Republican leadership from trying to pass a compromise measure to re-open the federal government and raise its debt ceiling. This marks another step towards the first U.S. debt crisis in history.
San José, CA – Four years after the Great Recession of 2007-2009 officially ended, millions of working people are being left behind by the expansion of the economy. While the stock market and corporate profits reached new highs, there are still millions of fewer jobs than before the recession began, and the official unemployment rate is closer to its recession high than the low before the recession. Things are bad.
On June 1, the Labor Department reported that only 69,000 net new jobs were created in May, less than half of what economists had expected and less than a third of the relatively strong job growth of the December through February period. Immediately the Republicans and the Romney campaign blamed President Obama and his policies, especially the health care reform act. The Democrats and the Obama administration quickly fired back, blaming the Republicans for blocking their economic stimulus proposals in Congress.
On Sept. 30, the Economic Cycle Research Institute (ECRI) publicly stated that the United States economy was tipping into a new recession. This adds to the growing evidence of a serious slowdown in the U.S. economy, including the zero job growth and falling personal income in August as well as falling prices and sales of homes in August.
_Working people need to fight back against austerity _
The U.S. economy continues to stagnate with almost no economic growth or job creation more than three years after the great financial crisis of 2008 and more than two years after the recession officially ended in 2009. The official unemployment rate is still over 9% nationally, and millions of workers who have stopped looking for work are not included in this count. Even worse, the Obama administration projects unemployment to stay above 8% for all of 2012, which would be four years of near double-digit unemployment.
San José, CA – In a sign that the economy is on the edge of another downturn, the Labor Department reported on Sept. 2 that there was no gain in jobs in August. Not counting last summer when there were large layoffs of temporary Census workers, this is the worst jobs report since February of 2010. The Labor Department also revised down the job gains for June and July, so that average job gain over the last three months was only 35,000 net new jobs per month. This is far below the 200,000 or so jobs that a normal recovery would be generating at this stage of an economic expansion.
San José, CA – On August 5, Standard and Poors, commonly known as S&P, downgraded U.S. government bonds from the highest rating AAA to the second-highest AA+. At the same time the S&P called for even more austerity, saying that $4 trillion in cuts in U.S. government spending were needed, not the $2 trillion agreed upon earlier in the week. S&P criticized the U.S. government for not making cuts in Social Security and Medicare. In addition, S&P said that the federal government spending cuts needed to come sooner, increasing the chances of a new downturn in the economy, or the feared ‘double-dip’ recession.
