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TMFDeej (99.46)

Some good news on the jobs front for a change

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June 18, 2009 – Comments (2)

I realize that in no way does this news represent any sort of real economic growth, but it is good to see people who have temporarily lost their jobs put back to work.  Yesterday Chrysler announced that it will reopen 7 of its 11 assembly in June for the first time since the day after the company filed for bankruptcy in April.  Chrysler supposedly has 38,000 production workers in the U.S., most of them excluding the 5,000 that worked at two plants thatwill be closed permanently, will return to the job in the near future.  I suspect that many of the people who worked at these plants filed for unemployment when Chrysler went bankrupt. 

As much as I strongly disagree with how the Administration shafted bondholders and rewarded the UAW, my hat is off to them for blasting Chrysler through the bankruptcy process much more quickly than I ever thought possible and getting these prople back to work ASAP.

Again, this is not jobs growth but it will contribute to the trend of slowing jobs losses that we have been witnessing over the past several months.  On a related note, weekly jobless claims come out at 8:30 AM EST today.  I have been paying very close attention to this number lately.  Hopefully the weekly claims will continue to improve.

Chrysler set to reopen most plants

Deej

2 Comments – Post Your Own

#1) On June 18, 2009 at 11:48 AM, bigcat1969 (96.97) wrote:

Initial claims rose by 3000, the four week average fell by 7000 and total unemployment insurance rolls fell by 148,000.  So who you are depends on if this is good news or bad news.  If those 148,000 have found jobs then we are doing good, if the long term unemployed are simply starting to drop of the government payroll, then not so good.

If almost a 150k Americans just lost their unemployment paychecks and have not found any way to replace them and if this is going to start happening on a weekly basis, then look out below.

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#2) On June 18, 2009 at 12:28 PM, Melaschasm (88.50) wrote:

bigcat1969,

I do not have any special insider knowledge, but most of the layoffs started less than a year ago, so it seems probable that a significant portion of the 150,000 have found jobs of some sort, even if they pay less than what they previously earned.  I would guess that the total wages/benefits of the 150,000 people that dropped from the rolls will be similar to what they were being 'paid' by unemployment. 

Like you, I would like to have actual data regarding the details of what is happening.  Without access to the details we are left to guess.  From the few people I know on unemployment, many wait until they only have a couple months left, then go out and find a job that replaces their unemployment benefits.  I also know the rare person that starts job hunting right away, and ends up with a similar or better job than their previous.

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