Employment Data Raises Recession Fears
The all-important Employment Report issued this morning has served to heighten recession fears and back up expectations that the Federal Reserve will again cut interest rates when it meets later this month.
The Labor Dept. reported employment fell in February at its fastest rate in five years, with nonfarm payrolls declining 63,000. That came on the heels of a 22,000 decline in January, which was the first decline in over four years. The Wall Street Journal noted that if not for a solid rise in government jobs last month, payrolls would have fallen by over 100,000.
The unemployment rate fell 0.1 percentage point to 4.8%, which analysts said was not an improvement but really reflected a decline of some 450,000 in the workforce.
Meanwhile, the Fed announced it is adopting new steps to help ease the credit crisis, including increasing the amount of money it will auction to banks.
Today's Employment data came against a backdrop of losses in U.S. stocks Thursday and continued declines in Asian and European markets in overnight actio
The Labor Dept. reported employment fell in February at its fastest rate in five years, with nonfarm payrolls declining 63,000. That came on the heels of a 22,000 decline in January, which was the first decline in over four years. The Wall Street Journal noted that if not for a solid rise in government jobs last month, payrolls would have fallen by over 100,000.
The unemployment rate fell 0.1 percentage point to 4.8%, which analysts said was not an improvement but really reflected a decline of some 450,000 in the workforce.
Meanwhile, the Fed announced it is adopting new steps to help ease the credit crisis, including increasing the amount of money it will auction to banks.
Today's Employment data came against a backdrop of losses in U.S. stocks Thursday and continued declines in Asian and European markets in overnight actio
Labels: unemployment, USA
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