Saturday, October 4, 2008

When Shit Hits The Fan

NYTimes:
For the first eight months of the year, the economy lost an average of 75,000 jobs each month. September’s report more than doubled the pace.

"A lot of companies came to the realization that there was no momentum in the economy to pick them up in the second half of 2008," said Steve Drexel, chief executive of Corestaff Services, a staffing company in Houston. "They had been hanging on to people and hoping things would improve, but now a lot companies are just sort of retrenching."

The unemployment rate remained steady at 6.1 percent in September, but economists said that reflected how people who had given up looking for work were not counted. Over the last year, the unemployment rolls have swelled by 2.2 million, to 9.5 million. On Friday, Goldman Sachs forecast that the jobless rate would reach 8 percent by the end of next year, which would be the highest in 25 years.

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