Forecast for U.S. workers: Gloom

Peter S. Goodman
IHT
Wednesday, July 2, 2008

As automakers dropped their latest batch of awful sales numbers on the market on Tuesday, reinforcing the gloom spreading across the economy, the troubles confronting American workers seemed to intensify.

Plummeting home prices have in recent months eliminated jobs for hundreds of thousands of people, from bankers and real estate agents to construction workers and furniture manufacturers. Tighter lending standards imposed by banks in the wake of huge mortgage losses have made it hard for many Americans to secure credit — the lifeblood of expansion in recent years — crimping the appetite of consumers, whose spending amounts to 70 percent of the economy.

Joblessness has accelerated, and employers have slashed working hours even for those on their payrolls, shrinking the size of paychecks just as workers need them the most.

(Article continues below)

Now, add to that unsavory mix the word from automakers that sales plunged in June — by 28 percent for Ford, 21 percent for Toyota and 18 percent for General Motors — a sharp sign that consumers are pulling back, making manufacturers more likely to cut production and impose more layoffs. Until recently, the weak labor market has been marked more by the reluctance of employers to create new jobs than by mass layoffs.

Among economists, the sense is broadening that the troubles dogging the economy will be stubborn, leaving in place an uncomfortable combination of tight credit and scant job opportunities perhaps well into next year.

Full article here.

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5 Responses to “Forecast for U.S. workers: Gloom”

1. 9/11wuzthegov Says:
   July 2nd, 2008 at 7:04 pm

   Not good.

2. yellowhak1 Says:
   July 2nd, 2008 at 9:04 pm

   certainly not surprising. however. to some it doesnt even exist.

3. Heidi Elston Says:
   July 3rd, 2008 at 4:35 am

   For Christ Fucking Sakes!!!!!
   This has been going ON for EVER!!!! We are NOT in a so-called slow down or a POSSIBLE recession…..WE are being taken over by a fascist government on the highway to our grandma’s DE-pression!!!!!!Only..THIS time people are all messed up and too confused and down-trodden to understand how BAD it really IS!!!!
   FASCISM: A system of government characterized by ridged one party-dictatorship,(Democrats or Republicans or who cares),forcible suppression of opposition,private economic enterprise under centralized government contral,belligerant nationalism,racism,militarism,ect..

4. bill Says:
   July 3rd, 2008 at 7:13 pm

   Thank you HEIDI !

5. mike Says:
   July 3rd, 2008 at 9:56 pm

   god (?) bless amerika….