Non-Farm payrolls rose by 13.000 workers this month-median Bloomberg forecast

Discussion in 'Economics' started by ASusilovic, Jan 31, 2010.

  1. Jan. 31 (Bloomberg) -- The U.S. may have gained jobs in January for the second time in three months as the world’s largest economy began 2010 on firmer footing, economists said before reports this week.

    Payrolls probably rose by 13,000 workers this month, according to the median forecast of 50 economists surveyed by Bloomberg News before the Labor Department’s Feb. 5 report. The unemployment rate may have held at 10 percent for the third consecutive month.

    The fastest pace of economic growth in six years last quarter may give rise to more employment gains as companies restock shelves and invest in new equipment. While the U.S. will probably take years to recover the 7.2 million jobs lost since the recession began at the end of 2007, additional hiring would be welcome news to President Barack Obama, who said job creation will be his top priority in 2010.

    “It’s still quite feeble job growth,” said Michelle Meyer, an economist at Barclays Capital Inc. in New York, who forecast a 25,000 gain in payrolls. “We do think the trend will be toward greater job creation.”

    Oracle Corp. and General Electric Co. are among companies looking to hire.

    Payrolls fell by 85,000 last month after a 4,000 gain in November that was the first increase in almost two years.

    Obama Announces $33B Hiring Tax Credit

    President Obama announced today a proposal to establish a $33 billion tax credit to encourage small businesses to hire more workers and increase wages. The plan is one of several the president is pushing to help bolster employment in a country where one in 10 Americans no longer receives a paycheck.

    The announcement comes two days after the president's first State of the Union address, when he said that jobs must be the U.S.'s top priority this year.

    The tax credit, the president said, "is a simple, easy-to-understand mechanism that will cut taxes for more than 1 million small businesses."

    Obama, who spoke today at the Chesapeake Machine Company's manufacturing plant -- a Baltimore firm employing 40 people -- said the credit will give small businesses "an incentive to hire more people and a little bit of extra money to pay higher wages, to expand work hours or invest in their company."

    The president also reiterated his call for the Senate to pass a jobs bill. The House last month approved a $150 billion bill that included some of the job creation efforts touted by the president. Some Republicans, meanwhile, have also introduced proposals for business tax breaks and Obama said that he looked forward to working with them.

    "I'm open to any good ideas from Democrats or Republicans," he said.

    Critics argue that among Obama's proposals, some are more realistic than others. Below, takes a look at the president's plans and where, some say, they fall short.

    Small Business Tax Credits for Hiring, Raising Wages; Eliminating Capital Gains Taxes

    Under the president's proposed tax credit, businesses would receive a $5,000 tax credit for every net new employee that they employ in 2010.
  2. TGregg


    Want a real jobs bill? Come out and say "We'll study cap & trade for the next several years instead of essentially instituting a major new tax." Then pass genuine health care reform that uses free market principles to control costs. And if you have to throw money around, use it to build/repair roads and bridges. Set up vocational training. Put some of these people on year long unemployment benefits on part time work for the government.

    Don't hold your breath though. After all, there's a new season of American Idol underway or just around the corner.
  3. jnorty


    wow 13k jobs added thats impressive. unfortunately for the bulls we're long past a positive # creating excitement as nov already had one and this bull mkt has used its 9 lives. at this pt in the stock market meltup we should be at 300-400k jobs added per month and the unemployment rate sould be down to 7.5%.its funny but the market is selling off after 9 months of waiting better earnings finally arrived. if the market falls another 5% or so econ #'s will start turning down hard for a month or 2.. i'm expecting a few flushout days as we've really had no panic selloff days.maybe we can get near 1000 but i think the mkt might rerun into late spring early may as 2 bogus events happen. with the 8k home tax credit ending in april coinciding with the spring selling season i expect some nice temp housing #'s that wall street will play up. i also expect the 1 mil person temp hiring of census workers to boost the payroll #'s big for a few months and yet again wall street will pay it up. i'll be closing out all shorts in the next few weeks and will look to reshort big in the summer and hold for 3-5 months
  4. 13,000 census workers were hired! :cool:
  5. paying employers to hire people....sounding more and more like socialism every day.