March Unemployment: 742,000 private sector jobs

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SkylightMT's picture
SkylightMT
Status: Silver Member (Offline)
Joined: Sep 30 2008
Posts: 125
March Unemployment: 742,000 private sector jobs

Is this the largest monthly unemployment count so far? I wonder what the official numbers will be (and later when they're downwardly revised).

 

http://www.marketwatch.com/news/story/Private-sector-cut-742000-jobs/story.aspx?guid=%7BE45A446B%2D3684%2D492A%2D8B51%2D72D481BDC50C%7D

WASHINGTON (MarketWatch) -- The U.S. labor market worsened again in March, as private-sector firms cut 742,000 jobs in March, signaling another terrible employment report on Friday, according to the ADP employment index released Wednesday. The report comes two days before the Labor Department reports its estimate for nonfarm payrolls. The goods-producing sector shed 327,000jobs, the 27th consecutive decline. Manufacturing lost 206,000, while construction lost 118,000. The services sector lost 415,000 jobs. The ADP index does not include government jobs. Adding in the typical 12,000 jobs gained in the public sector, the ADP report points to nonfarm payrolls falling by 730,000, compared with the MarketWatch consensus of 663,000

investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Re: March Unemployment: 742,000 private sector jobs

Whats really scary is what the real numbers are.

http://www.shadowstats.com/

kmarinas86's picture
kmarinas86
Status: Silver Member (Offline)
Joined: Dec 29 2008
Posts: 164
Re: March Unemployment: 742,000 private sector jobs
SkylightMT wrote:

Is this the largest monthly unemployment count so far? I wonder what the official numbers will be (and later when they're downwardly revised).

 

http://www.marketwatch.com/news/story/Private-sector-cut-742000-jobs/story.aspx?guid=%7BE45A446B%2D3684%2D492A%2D8B51%2D72D481BDC50C%7D

WASHINGTON (MarketWatch) -- The U.S. labor market worsened again in March, as private-sector firms cut 742,000 jobs in March, signaling another terrible employment report on Friday, according to the ADP employment index released Wednesday. The report comes two days before the Labor Department reports its estimate for nonfarm payrolls. The goods-producing sector shed 327,000jobs, the 27th consecutive decline. Manufacturing lost 206,000, while construction lost 118,000. The services sector lost 415,000 jobs. The ADP index does not include government jobs. Adding in the typical 12,000 jobs gained in the public sector, the ADP report points to nonfarm payrolls falling by 730,000, compared with the MarketWatch consensus of 663,000

Companies chose to layoff workers because the decreasing consumer market could not cover the expense of a vast majority of these jobs. The consumer markets are further damaged by reduced incomes. This is greater sign of a deflationary spiral, which will only get worse until those jobs can be afforded again.

One of the underlying reasons why people are being laid off is because of payroll and income taxes. If payrolls and dividends had been an item for tax exemption (say against a VAT or value added tax) instead of being a part of the tax base, then you would have observed far fewer layoffs and far fewer pullouts of investments.

The time is ripe for abolishing the income and payroll taxes!

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