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alstry (35.49)

Unemployment Skyrocketing

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April 18, 2008 – Comments (3)

For the past few weeks, I have diverged from HBs to job losses.  The two go hand in hand.  No Job no house.

I estimate about 10 million jobs were created between 2001 and 2007 as a direct/indirect result of credit creation.  With credit contracting, those jobs are now being cut.  If you understand the problem, the cuts will grow parabolicly month by month.

A few months ago we were hearing companies laying off 500 to 1000 workers per round.  Today we saw ATT get rid of 5000 and Citi shed 10,000....those are just two, there were more.

In a few more months, we will likley add a zero to the above numbers.

The following is from today's LA Times:

By Marc Lifsher, Los Angeles Times Staff Writer
12:22 PM PDT, April 18, 2008 SACRAMENTO -- California's unemployment rate rose by a whopping half a percentage point in March, reaching 6.2% as a weakening economy shed jobs in the ailing construction and financial activities sectors. In all, 1.13 million were unemployed.

The Economic Development Department reported that March's unemployment was the highest since July 2004, when the rate was also 6.2%.

Unemployment is up 1.2% from a year ago, with 229,000 more Californians looking for work.

'This is a huge increase,' a chief economist for the state says of half-point rise in March figures. Losses are greatest in the construction, financial services sectors.

THINK ABOUT IT FOR A SECOND, 1.2% IN A YEAR, BUT 1/2% JUST FROM LAST MONTH. Just wait a few more months and see what the rate will be.

3 Comments – Post Your Own

#1) On April 18, 2008 at 5:56 PM, alstry (35.49) wrote:

Not just construction and finance............

This year, some districts, including the behemoth Los Angeles Unified, have avoided layoff notices to teachers, but many are preparing for deep cuts. About 14,000 teachers have received pink slips throughout the state, according to the California Teachers Association.

San Diego Unified School District, the state's second-largest, has issued the most with about 900. Notices were sent out by seniority, touching people with fresh credentials like Jackson.

The notices also went to experienced hands like Lincoln High's Guillermo Gomez, 37, who was named a San Diego County Teacher of the Year in 2006 for his work in suburban Chula Vista. He lost his seniority when he joined the San Diego district last year to help launch a new college-track program in social justice at Lincoln.

Only math, science and special-education teachers were protected in San Diego.

"I took a risk and a $10,000 pay cut to come here," said Gomez, whose wife, an elementary-school teacher, was also given notice. "Now we're in limbo and waiting for the worst."

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#2) On April 18, 2008 at 6:28 PM, alstry (35.49) wrote:

Evidence of Parobolic Growth of Distress:

The public's ratings of the national economy continue to sour, with assessments deteriorating faster than at any point in Washington Post-ABC News polling.
...
Nine in 10 Americans now give the economy a negative rating, with a majority saying it is in "poor" shape, the most to say so in more than 15 years. And the sense that things are bad has spread swiftly. The percentage who hold a negative view of the economy is up 33 points over the past year, and the percentage who rate the economy "poor" has increased 13 points in the past two months. That is the quickest 60-day decline since The Post and ABC started asking the question, in 1985.

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#3) On April 18, 2008 at 9:46 PM, alstry (35.49) wrote:

The Marriage of HBs and Job Losses in CA:

New Jersey-based builder K. Hovnanian Homes has filed a report with the state indicating that it plans to close its Southern California Coastal Region office in Irvine, consolidating its Orange County operations with the Southern California Inland Region in Ontario.

As many as 60 positions are being eliminated in the two offices as well as in K. Hovnanian’s field offices from San Diego to the lower central valley, said Nicholas Pappas, the Coastal Region president in Irvine. About 30 of the employees based in Irvine will be jobless when the office closes by May 23, about a dozen of them because they are unwilling to commute to the Ontario office.

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