Morning Market Roundup: Jobs Numbers, Greece Reprieve, U.S. Trade Deficit
- Posted on March 9, 2012 at 9:52am by
Becket Adams
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Here’s what’s important in the financial world this morning:
Jobs Numbers: U.S. employers added 227,000 jobs in February to complete “three of the best months of hiring since the recession began,” according to the Associated Press. The unemployment rate was unchanged, largely because more people streamed into the work force.
The Bureau of Labor Statistics said Friday that the unemployment rate stayed at 8.3 percent last month, the lowest in three years.
“And hiring in January and December was better than first thought,” the AP is reporting. “The government revised those figures to show 61,000 an additional jobs.”
According to the Bureau of Labor Statistics’ data, the economy has now generated an average of 245,000 jobs in the past three months.
“That bodes well for President Barack Obama’s re-election chances, although he’s still likely to face the highest unemployment rate of any post-war president,” the AP reports.
However, as reported yesterday on The Blaze, today’s numbers don’t exactly match Gallup’s numbers,
“Regardless of what the government reports, Gallup’s unemployment and underemployment measures show a substantial deterioration since mid-January,” Gallup reported yesterday.
Photo Source: Gallup
“In this context, the increase in unemployment as measured by Gallup may, at least partly, reflect growth in the workforce, as more Americans who had given up looking for work become slightly more optimistic and start looking for work again. So while there may be positive signs, the reality Gallup finds is that more Americans are looking for work now than were doing so just six weeks ago [emphasis added],” the report adds. Not exactly as rosy as the AP’s report.
Ed Morrissey of Hot Air offers his own analysis:
…Gallup is usually a good indicator of what is to come in either the same month or the month following. Until then, this is a good jobs report, although not significant enough to make a big dent in the massive overhang of joblessness. At this rate, it would take close to three years to get back to the pre-recession level of employment in the US.
Greece: The small Mediterranean country has cleared a major hurdle in its race to avoid bankruptcy by persuading the vast majority of its private creditors to sign up to the biggest national debt writedown in history, paving the way for a second massive bailout.
Following weeks of intense discussions, the Greek government said Friday that 83.5 percent of private investors holding its government bonds were participating in a bond swap. Of the investors holding the euro177 billion ($234 billion) in bonds governed by Greek law, 85.8 percent joined.
“We have achieved an exceptional success … and I believe everyone will soon realize that this is the only way to keep the country on its feet and give it a second historic chance that it needs,” Finance Minister Evangelos Venizelos told Parliament.
He said he would recommend the activation of legislation known as “collective action clauses” to force bondholders who refused to sign up into the swap. The issue was to be discussed at a Cabinet meeting Friday afternoon.
“A window of opportunity is opening” with the success of the deal to reduce the country’s €368 billion debt by€105 billion, or about 50 percentage points of gross domestic product, he said.
Spain: Spanish labor unions mounted their first significant challenge to the country’s new government Friday when they called for a general strike for March 29 to protest against new labor reforms and austerity measures.
The labor reforms, passed last month, slash the cost of firing workers and ease conditions under which they can be dismissed. Salaries can be lowered unilaterally, and companies can lay off employees at the cheapest level of severance pay by reporting three straight months of declining revenue.
Workers Commissions and the General Workers Union called the stoppage following separate executive committee meetings.
Ignacio Fernandez Toxo of Workers Commission said the reforms are steered too much in businesses’ favor. He likened the changes to labor laws that existed when Gen. Francisco Franco ruled, from 1939-1975.
“It is the most regressive reform in the history of democracy in Spain,” he told a news conference.
U.S.: The U.S. trade deficit surged to the widest imbalance in more than three years in January as imports hit an all-time high, reflecting big demand for foreign-made cars, computers and food products.
U.S. exports to Europe fell, raising concerns that the debt crisis in that region could dampen U.S. economic growth.
The January trade deficit widened to $52.6 billion, the biggest gap since October 2008, the Commerce Department reported Friday. Imports rose 2.1 percent to a record $233.4 billion. Exports were up a smaller 1.4 percent to $180.8 billion. Exports to Europe fell 7.5 percent.
Economists are looking for the deficit this year to widen from last year’s $560 billion imbalance, reflecting in part the economic woes in Europe, which represents about 20 percent of America’s export market. A wider deficit can depress economic growth because it usually means fewer export-related jobs.
A National Association for Business Economics forecasting panel has projected that the deficit for 2012 will narrow by 4.1 percent to $535.4 billion and will edge down further to $525 billion in 2013 as growth in exports keeps pace with import increases.
The Associated Press contribute to this report.
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jomama9717
Posted on March 11, 2012 at 6:32pmwhat about the REAL rate of unemployment?…..those who work and those who dont without all the bs….i would bet half the country doesnt work and takes from those who do….it has to stop…charity should be only freely given and this should be in the constitution…..the productive american has become the beggar trying to keep the fruits of our toil while those on pensions sit on thier asses and want thier funds bailed out…..no more ….working americans stand up
Report Post »jomama9717
Posted on March 11, 2012 at 6:26pmthe numbers are definitely manipulated. the economy would probably crash today if the real debt and deficit were known…..and note how they manipute the so called unemployment rate….try and find out what the real employment rate is in america….just try…how many americans are slaves to the government and the parasites who do not work?…..there needs to be a real riot in the streets by people who work for a living and are forced at the point of a government gun to pay for the parasites on ssi, food stamps, medicare, medicaid and the list that goes on endlessly….many of these so called freedom loving tea party members are parasites themselves….i have met them at tea parties and questioned them about it and they are indignant…..i have worked since i was a child and have never taken a handout yet i am forced to contribute to a corrupt ripoff so called charity at the point of a gun….i am really really sick of it
Report Post »speedeesam
Posted on March 10, 2012 at 6:38pmYou raise pertinent questions. How about asking about the number of employees the government hired during the month of February to staff the fema camps across the U.S.A.? Were the fema camp employees who were hired counted among the latest news release of statistics? Are American citizens aware of this actioin?
Report Post »ASK3712
Posted on March 9, 2012 at 6:26pmThe Bureau of Labor Statistics said Friday that the unemployment rate stayed at 8.3 percent last month, the lowest in three years.
My question is, has ANYONE FACTORED in the MILLIONS that are 1099 that are in the PHATOM ZONE of these so-called numbers.
How many % POINTS do those who in essence have No Rights add to these TOTALLY FICTICIOUS NUMBERS?
Report Post »Jeaniec
Posted on March 9, 2012 at 10:27pmAccording to Channel 8 this afternoon we are out of the recession, the most jobs gained since 2006! This should be a big boost for president bammy. That being said, I wonder if they consider the people that went from unemployment to disability? I heard those numbers have increased 10 fold. Also less we not forget the people that have just given up… The left will do or say anything to make their president “appear” to be great.
Report Post »msblue
Posted on March 9, 2012 at 5:26pmNow the federal government is using the created jobs as it’s base for unemployment stats. Never mind that over 400,000 new claims for unemployment are being filed each and every week. Never mind those that have run out of benefits, are without work and are no longer counted. In Michigan, federal extended benefits have been withdrawn, effective February 18th, because we no longer meet the guidelines. We were told that not enough people in Michigan were unemployed for federal help. So, no job, no money, no help.
Report Post »cybercorrespondent
Posted on March 9, 2012 at 5:25pmPlease spear me from the painful option of choosing between Marxist Obama http://youtu.be/8qHmXMMCrlI and progressive Romney, http://www.youtube.com/watch?v=SrOhlT7MnXc&feature=related . One will guarantee doom and the other will slow down the process.
Report Post »MammalOne
Posted on March 9, 2012 at 1:55pmIt drives me insane when people talk about how we’ve added X number of jobs, – how does this bode for so-and-so’s election campaign???
Who cares how this affects Obama’s election chances? What matters is how this affects the American people.
Report Post »TOMSERVO
Posted on March 9, 2012 at 3:02pmI’m guessing all the angry Tea-Partiers who are rooting against America right now for the purposes of getting their guy in the White House care.
Report Post »hauschild
Posted on March 9, 2012 at 11:27amAnother month passes, and another round of propaganda ensues.
Funny how everything is “better than expected”, until the numbers are revised down.
I fully expect the jobs numbers to be manipulated while a Marxist is POTUS, and especially leading up to the election. Would assume the “reported” unemployment rate is going to magically be under 8% before the summer ends.
Never in my wildest nightmares did I expect communist/fascist-style propaganda to work on modern, American minds – never. I’m rarely surprised by anything in life, but this one really threw me for a loop when it began years ago. It is tragic.
Report Post »TOMSERVO
Posted on March 9, 2012 at 3:04pmExcept all the revisions in the last few months have been up…strange. Funny how total employment is rising at the most significant rate since the housing market burst, and yet all you hear around here is doomsday predictions and how the president is trying to control how many children you have. Jesus people.
Report Post »discus02
Posted on March 9, 2012 at 11:10amSpain, Greece, Italy who is next in the European Union. Thank god for the Germans! There must be a job over their for Obamanomics!
Report Post »lukerw
Posted on March 9, 2012 at 10:35amLook like the European Countries are deciding… if they will go Communist… or Fascist… AGAIN!
Report Post »Gonzo
Posted on March 9, 2012 at 10:12amObama definately has a career in energy when he’s out of office…he cooks the books almost as well as Enron.
Report Post »Psychosis
Posted on March 9, 2012 at 10:01amreal unemployment is over 16 %
Report Post »TOMSERVO
Posted on March 9, 2012 at 3:05pmNo. It isn’t. Find me one source that says that and shows the methodology.
I’ll be waiting.
Report Post »stockflyer
Posted on March 10, 2012 at 8:40amTomS, The rate has come down a bit, but look at the different unemployment rates the BLS reports. The broadest coverage of unemployed is U6. the one used in media is U3.
http://www.bls.gov/news.release/empsit.t15.htm
A couple months ago it was over 16%. Your wait is over.
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