Art Of Electronics
Posted in Posters on 05/17/2007 03:46 pm by admin
U.S. Economy Unemployment Corporations DJIA Stock Market Business?
Virtually every sector in the U.S. Economy from Housing to Retail to Banking to Small Businesses are laying off workers in 2009. For example, video game company Electronics Arts has plans to lay off 10% of its work force in the upcoming season. How does this affect the unemployment rate in the U.S.? Currently the jobless rate is the highest in 16 years (approximately 8 to 9%). With futher job cuts down the line, will the U.S. economy be pushed into further recession? If this is the case, won’t predictions for a two year recession be inaccurate, and we will be seeing negative growth for much longer?
The workforce reductions trail the economy. Microsoft announced a 5,000 employee reduction last week. When the beneficiaries of the information technology boom adjust their costs to reflect real world economic conditions, the underlying economy will begin to return to growth. Only the local, state, and federal governments add employees in the midst of a recessionary downturn. Two years of flat to negative growth seems reasonable. When an honest decision is made on the Detroit automakers and the UAW, there will be some color shed on the length of the recession. Candidly, I was surprised that the general pubic opposed another Detroit bailout and the media reported the public displeasure with the auto bailout. This one industry needs to rationalized before an exit from recession can begin.
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