WASHINGTON — Finally, a lot fewer workers are hearing the dreaded words, "You’re fired.”
In the clearest sign yet that the recession is ending, layoffs slowed dramatically in July, the jobless rate dipped for the first time in 15 months and workers’ hours and pay edged upward.
Those are the kinds of figures that could give Americans the psychological boost necessary for recovery to take root after the worst recession since World War II.
A net total of 247,000 jobs were lost last month, the fewest in a year and a drastic improvement from the 443,000 jobs that vanished in June.
The Labor Department’s report Friday showed that the unemployment rate dropped a notch to 9.4 percent in July, from 9.5 percent the previous month. Together with slight increases in the average workweek and wages, the new figures suggested the economy is in a transition from recession to recovery.
"The worst may be behind us,” President Barack Obama declared. "Today, we’re pointed in the right direction.”
Still, the job market remains shaky.
A quarter-million lost jobs are a far cry from the employment growth needed to put the national economy on solid footing.
When the economy is healthy, employers need to add a net total of about 125,000 jobs a month to keep the unemployment rate stable. And to push the jobless rate down to a more normal 5 percent, it would take stronger growth — at least 200,000 new jobs a month. Economists say it might take until 2013 to drive down the unemployment rate to 5 percent.
Yet the improvements in July could give some businesses the confidence to hire again — or at least not to lay off more workers. And consumers, less anxious about losing jobs, could respond by spending more freely.
"If people and companies think the worst is behind them — and it probably is — their confidence will be restored,” said Richard Yamarone, economist at Argus Research. "That confidence can feed on itself.”
On Wall Street, the report propelled stocks higher. The Dow Jones industrial average jumped 114 points, and other stock averages also gained.
Analysts had been forecasting bleaker employment figures: more job losses and an increase in the unemployment rate to 9.6 percent.
The White House said the president still expects the rate to hit 10 percent this year. So do many economists and the Federal Reserve.
The worst may be behind us.”
President Barack Obama
by the associated press
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Saturday, August 8, 2009
Wednesday, August 5, 2009
Fairs attract record attendance
CHARLESTON, W. Va. — Fun-seekers venturing out to farm fairs, art festivals and other mainstays of the American summer are finding either crowds or cancellation notices this year — and sometimes for the same reason.
Many festivals have met their demise when national sponsors pulled away and lawmakers slashed grant budgets, leaving organizers without enough money to buy tables, tents, portable toilets and other fair basics. That has many wondering whether their events will ever mount a comeback, though the ones that downsize stand a better chance than the ones that cancel entirely.
The survivors have trimmed endeavors and expenses, with many receiving record crowds eager for a recession-inspired "staycation.”
"It’s going to be Darwinian,” said to Ira Rosen, who runs Entertainment on Location, a festival and event production service. "The ones who can survive are going to be stronger, because now they have to watch every nickel and dime, and there’s going to be less competition.”
The flip side of that gloom is that fairs have weathered past recessions well. For every event cutting back or canceling this year, there seems to be another with happy crowds shelling out for corn dogs, concerts and rides.
"The trend really is people vacationing here in their backyard,” said Eiron Smith, a spokeswoman for Watkins Glen International Raceway in New York, which just wrapped up the 12th Finger Lakes Wine Festival.
Watkins Glen, which owns the festival, spent less selling itself to other states and more on marketing at home, Smith said, and was rewarded with a 10 percent increase in attendance over 2008.
Typically, the festival draws about 20,000.
When Gov. Ted Strickland opened the 156th annual Ohio State Fair this week, he called it a way for families to enjoy a "staycation.” State fair spokeswoman Christina Leeds said the event attracted 227,719 people during the first four days of its 12-day run.
The 17-day Alameda County Fair in California drew more than 432,000 people in July — 1,000 more than the previous attendance record, set in 1997. Other fairs in California and Wisconsin have also drawn record crowds, said Marla Calico, director of grants and special education for the International Association of Fairs and Expositions, which has 1,300 member events.
Bigger crowds are common during economic downturns, Calico said.
"There’s almost a pent-up demand for some- thing fun,” she said. "It’s a nice escape.”
by the associated press
Many festivals have met their demise when national sponsors pulled away and lawmakers slashed grant budgets, leaving organizers without enough money to buy tables, tents, portable toilets and other fair basics. That has many wondering whether their events will ever mount a comeback, though the ones that downsize stand a better chance than the ones that cancel entirely.
The survivors have trimmed endeavors and expenses, with many receiving record crowds eager for a recession-inspired "staycation.”
"It’s going to be Darwinian,” said to Ira Rosen, who runs Entertainment on Location, a festival and event production service. "The ones who can survive are going to be stronger, because now they have to watch every nickel and dime, and there’s going to be less competition.”
The flip side of that gloom is that fairs have weathered past recessions well. For every event cutting back or canceling this year, there seems to be another with happy crowds shelling out for corn dogs, concerts and rides.
"The trend really is people vacationing here in their backyard,” said Eiron Smith, a spokeswoman for Watkins Glen International Raceway in New York, which just wrapped up the 12th Finger Lakes Wine Festival.
Watkins Glen, which owns the festival, spent less selling itself to other states and more on marketing at home, Smith said, and was rewarded with a 10 percent increase in attendance over 2008.
Typically, the festival draws about 20,000.
When Gov. Ted Strickland opened the 156th annual Ohio State Fair this week, he called it a way for families to enjoy a "staycation.” State fair spokeswoman Christina Leeds said the event attracted 227,719 people during the first four days of its 12-day run.
The 17-day Alameda County Fair in California drew more than 432,000 people in July — 1,000 more than the previous attendance record, set in 1997. Other fairs in California and Wisconsin have also drawn record crowds, said Marla Calico, director of grants and special education for the International Association of Fairs and Expositions, which has 1,300 member events.
Bigger crowds are common during economic downturns, Calico said.
"There’s almost a pent-up demand for some- thing fun,” she said. "It’s a nice escape.”
by the associated press
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