Online labor demand down nearly 100K in June
New York, NY, United States (AHN) – Data released Wednesday shows that online advertised job vacancies were down 99,700 in June to 4,371,500.
The figures were based on calculations from The Conference Board Help Wanted OnLine™ (HWOL) Data Series. The Supply/Demand rate stands at 3.11, indicating there were just over three unemployed for every online advertised vacancy in May, the latest monthly data available for unemployment.
“The national trend in labor demand, while still positive, has definitely slowed in the last few months as gains in one month are partially offset by a pullback in advertised vacancies in the next,” said June Shelp, vice president at The Conference Board. “The pattern over the last few months is beginning to look like the very slow growth in labor demand in 2010. After the large increase of 526,000 in January, average monthly job growth over the next five months has been choppy and has averaged about 33,000/month.”
In June, the drop in labor demand was widespread across the Nation with 43 of the 50 states down over the month
Among the regions, the South was down 62,800, reflecting lower labor demand in all of the larger states in the region for June.
In June, the West declined 50,400. The largest monthly drop in advertised vacancies was in Arizona, down 15,300 to a total of 77,600. After seven months of growth, advertised vacancies in Arizona have dropped for the last two months.
The Midwest slipped by 27,500 with declines in a number of its larger states, including Illinois, which declined 9,900 to 167,600 in June, and Wisconsin, down 6,100. Other large states with smaller numbers of online advertised vacancies in June included Missouri, down 3,000; Ohio, down 2,200; and Michigan, which dipped by 900 to 122,400.
In June, the Northeast declined by 22,500, reflecting drops in all of the largest states in the region. New York declined by 7,000, the third month of decline for the state (each decline in the 7,000 range), bringing the number of online advertised vacancies to 260,000.
Nationally, there are 9.4 million more unemployed workers than advertised vacancies.
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Obama’s approval ratings drop as economy stagnates
New York, NY, United States (AHN) – After slowly inching upward, President Barack Obama’s approval rating has once again dropped, based his handling of the nation’s economy. The downward move ties his lowest rating ever, in of October of last year.
Based on a recent Harris Poll, one-quarter of Americans (27 percent) give the President positive ratings on the overall job he is doing on the economy while almost three-quarters (73 percent) give him negative marks. Last month, one-third (32 percent) gave him positive marks and 68 percent gave the president negative ratings on the economy.
The future of the economy is also seen in a negative viewpoint. In February, more than one-third of Americans (34 percent) said they expected the economy to improve in the coming year, one-quarter (25 percent) thought it would get worse and two in five (42 percent) believed it would stay the same. This month, just one-quarter (26 percent) expect the economy will improve in the coming year, one-third (33 percent) say it will get worse and two in five (41 percent) believe it will stay the same.
One thing the White House also has to deal with in the next few months is the issue of the debt ceiling and whether it should be raised. Only one in five Americans (21 percent) are in favor of raising the debt ceiling while almost half (45 percent) are not in favor of raising it. However one-third of U.S. adults (34 percent) aren’t completely sure if it should be raised nor have a firm grasp of what it is.
If the debt ceiling is not raised, the government will be forced to temporarily stop paying for certain things to conserve funds.
With the presidential election 16 months away, one of the main areas expected to be hotly debated and used as a political hammer will be the economy.
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U.S. economy grew at tepid 1.9% during first quarter
New York, NY, United States (AHN) – The United States economy grew at a slow 1.9 percent pace during the first quarter of the year a slowdown in growth that Federal Reserve policy makers hope will only be a temporary.
In contrast, the economy grew at a more robust 3.1 percent rate in the previous quarter. Still the 1.9 percent figure was better than the 1.8 percent rise in gross domestic product predicted for the first quarter by government officials last month.
Real gross domestic product is the total output of goods and services produced by labor and property located in the U.S.
“The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, and nonresidential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased,” the U.S. Department of Commerce Bureau of Economic Analysis said in a statement.
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EU promises bailout to Greece
Brussels, Belgium (AHN) – European Union leaders assured the Greek government on Thursday that they are committed to help Athens get the second round of its bailout, while maintaining the bloc’s financial stability.
European Commission President Jose Manuel Barroso gave the commitment on the first day of the EU summit in Brussels. However, the promise is premised on Greece approving austerity measures next week.
Commenting on Barroso’s pledge, Greek Prime Minister George Papandreou said the EU promise is a positive sign for the embattled country’s future. But he has to convince not only the Parliament but also citizens to accept the $40 billion (EUR 28 billion) cost-cutting measures spread over the next five years.
Greece will get from the EU and International Monetary Fund the second installment worth $17 billion (EUR 12 billion) from the current $110 billion (EUR 78 billion) bailout package if the measures would be approved.
Athens needs the second tranche to pay its next loan payments due by the middle of July or default.
Papandreou pledged before major EU officials in an earlier meeting on Thursday that he will deliver the budget cuts despite the expected opposition from some legislators and citizens.
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Half of Americans suffering while rich prosper
Yonkers, NY, United States (AHN) – The saying “the rich get richer and the poor get poorer,” is seemingly true based on a two-year study of the groups. For American households earning less than $50,000 per year, it has been far more difficult on the economic road to recovery than their more affluent counterparts.
For more affluent households, those earning $100,000 or more, economic recovery began as far back as February 2010—when the Consumer Reports Sentiment Index score for this group moved into positive territory (above 50). In that time, sentiment among this affluent group, which represents 18 percent of Americans, has continued to rise and has reached a two-year high of 54.8.
However in the same period, sentiment levels of households earning less than $50,000 bottomed out in October of 2009. Since then, sentiment has barely risen among this group that represents 50 percent of the U.S. population.
“We are seeing a tale of two very different recoveries,” said Ed Farrell, a director of Survey Research at the Consumer Reports National Research Center. “While things have been improving for the wealthiest Americans for some time, lower-income families still have very little to be positive about.”
Analysts believe the disparity in sentiment levels could be attributed to the fact that lower-income households have suffered more pronounced and frequent financial troubles throughout the last two years.
Estimates place the financial suffering among lower-income Americans as being three to five times the level of those earning $100,000 or more over the course of the recession.
One of the biggest areas of disparity between the two groups is in their ability to afford medical coverage and prescription medication. The percentages of home ownership is a clear predictor of the two groups. Ninety percent of affluent households claim to own a home while only half of the lower income group can say the same.
Even now, missed mortgage payments among households earning less than $50,000 have soared, and are approaching 9 percent in June. Among the more affluent Americans, missed mortgage payment claims are below 2 percent and falling.
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Greek cabinet approves austerity measures; Debt default still possible
Athens, Greece (AHN) – A day after winning a confidence vote in the Greek Parliament, the country’s cabinet approved austerity measures for the 2012 to 2015 budgets and laws for the measures’ application.
The measures include $40 billion (EUR 28 billion) of spending cuts, tax increases, fiscal reforms and sale of government assets.
The next step for the financially challenged government is to secure the approval of the parliament where the ruling party of Prime Minister George Papandreou has enough numbers to pass the measures. However, unlike the confidence vote in which all members of the Socialist Party rallied behind the government, some MPs from the party also oppose the austerity measures.
Papandreou will have to convince the public, who have held several protests the past weeks over the belt-tightening measures. Ahead of the Parliament’s approval of the measures, protesters warned Athens of a major day of action when legislature votes on the issue next week.
Parliamentary approval is required by the European Union and the International Monetary Fund for the two bodies to release the second tranche of Greece’s bailout.
Despite Papandreou’s government winning a vote of confidence, Pimco, the world’s largest bond fund, opined that Greece would still likely default on its debts. Pimco Chief Executive Mohamed El-Erian said in a video conference in Taipei that Greece’s way to solve its financial problem is through a default.
The Pimco executive based his bleak outlook on the Greek government failing to enact measures that would enhance the country’s growth and the fact that no single economic indicator has shown strength due to fears that a restructuring would hurt European banks.
El-Erian said the EU and IMF are risking wasting their funds on the ailing Greek economy. But he said a Greek default alone would not trigger another round of global financial crisis because Greece is too small to create an economic impact on the international community.
He said other eurozone members, particularly Ireland, Portugal, Italy and Spain, must also default on their loans to negatively impact the global financial community.
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Boeing takes big orders at Paris Air Show
Paris, France (AHN) – Boeing is feeling the love at Le Bourget as it announced dozens of orders for new commercial passenger aircraft during the Paris Air Show.
Boeing and Qatar Airways announced a $1.7-billion deal for six Boeing 777-300ER (Extended Range) airplanes.
“We are extremely pleased to be playing a role in the growth and success of Qatar Airways,” Boeing Commercial Airplane Division President and CEO Jim Albaugh said Monday. “And we are grateful for the confidence and trust that Qatar Airways continues to place in Boeing – and in the 777.”
Boeing then announced an undisclosed deal for 17 747-8 Intercontinentals, valued at $5.4 billion. Now, Boeing has a 50-plane backlog of 747-8 orders.
“These orders for the 747-8 Intercontinental mark a major milestone for the program and demonstrate the market’s need for an airplane of its size and range. It will play a valuable role in further growing these carriers long-haul route networks,” Albaugh said.
The good news kept coming as the aerospace firm announced another deal with Los Angeles-based Air Lease Corporation (ALC) for 33 airplanes (14 firm orders and four options for Next-Generation 737-800s, as well as five 777-300ERs and four 787-9 Dreamliners).
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McCourt’s court battle continues: one-day trial could decide Dodgers’ future
Los Angeles, CA, United States (AHN Sports) – August 4 may be the make-or-break day for Frank McCourt and his ownership of the Los Angeles Dodgers.
In a divorce settlement reached Friday by Frank and Jamie McCourt, the judge overseeing the settlement scheduled a one-day trial on Aug. 4 to determine if the team will remain solely Frank McCourt’s or will be sold as a community property asset.
According to a report from the New York Times, the publicly feuding couple agreed to terms under which Frank McCourt was authorized by the judge to complete a cable television deal with Fox worth $2.5 billion to $3 billion over 17 years. The deal would give a McCourt subsidiary 35 percent of the channel, Prime Ticket, that shows Dodgers games.
The Fox contract requires the approval of baseball’s commissioner, Bud Selig, who has so far withheld it, angering McCourt.
According to the report, the McCourts’ divorce agreement lays out how a $385 million loan from Fox would be used: $235 million would go to the Dodgers, with up to $23.5 million to Frank McCourt, to repay part of a personal loan from FOX.
Those funds helped him meet payroll with $80 million to cut team debt; $5 million for Frank McCourt and his wife, Jamie, to use as they desire; $5 million each for lawyers’ fees; and $50 million for use at the court’s discretion.
MLB however is concerned about how much of the proceeds from the Fox deal would flow personally to the McCourts. During their divorce trial, evidence showed that the McCourts had used $108 million from the team over five years to finance their lavish lifestyles.
And the divorce settlement gives baseball veto power; if Selig rejects the Fox deal, the agreement is null and void. Indeed, it would appear that the trial is contingent on Selig’s say-so, or on changing how the $385 million is paid out.
Frank McCourt insisted in a telephone interview that the agreement ended the uncertainty over the team’s ownership; it will be his or it will be sold. “In either pathway, Jamie does not have control,” he said.
Despite Frank McCourt’s confidence that the divorce agreement smoothed the obstacles to Selig’s approval of the Fox deal, baseball’s problems with him go deeper, including the way he has run the franchise.
In April, Rob Manfred, an M.L.B. executive vice president, said, “‘There is no owner who, during the period 2004 to 2011, that we’ve spent more time with on his business problems, his business issues and his desire to be treated differently under applicable rules than Frank McCourt.”
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IMF adjusts forecast for growth in U.S. economy downward to 2.5%
Washington, D.C., United States (AHN) – The International Monetary Fund for the second time in as many months cut its forecast for growth in the United States during 2011.
IMF cut its forecast for the U.S. economy to a 2.5 percent growth rate, down from the 2.8 percent the agency predicted in April.
That is down quite a bit from the 3.1 percent growth rate registered in the last three months of 2010.
In addition, the Washington, D.C.-based IMF warned that further cuts in U.S. growth pose a threat to the global economy.
It blamed bad weather in the first quarter, along with a weak housing market and high commodity prices for the slump in the rate of growth for the U.S. economy.
Moreover, the IMF cut its growth forecast for 2012 from 2.9 percent to 2.7 percent.
It left its 2012 forecast for growth in the world economy unchanged at 4.5 percent although it did trim its forecast for this year from 4.4 percent to a 4.3 percent growth rate in the global economy.
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US retail sales drop 0.2% in May, ending 10 months of increases
Washington, DC., United States (AHN) – Retail sales fell by 0.2 percent in May, and although that was less than expected, it was the first drop in about a year.
The 0.2 percent drop was in contrast to the 0.3 percent rise in April. In addition, it marked the end of 10 consecutive months of increases in retail sales.
Moreover, if gasoline sales are excluded, retail sales actually dropped by 0.3 percent.
The slump in retail sales puts fresh attention on the stagnant jobs sector of the economy that has not yet begun the type of recovery that the economic sector of the economy has been experiencing since 2009. With the jobs sector of the economy stalled, consumer-driven retail spending will likely have a hard time rebounding.
However, the U.S. stock market responded to the better-than-expected sales report by boosting share prices in initial trading.
Dow Jones Industrial Average rose 1 percent to 12,069 in early trading with Home Depot stock leading the pack.
Standard & Poor’s 500 stock rose 1.1 percent to 1,285 with industrial and energy stocks leading in early trading.
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