U.S. Small Businesses Cut Jobs For Third Straight Month In August: Survey

U.S. small business owners trimmed jobs in August for the third month in a row, though the rate of decline continued to moderate, a survey released on Thursday showed.

The poll by the National Federation of Independent Business found the average number of net new jobs declined by 0.08 workers per firm in August, after a decline of 0.15 in July.

On a seasonally adjusted basis, 12 percent of owners added an average of 3.1 workers per firm. But that was tempered by the 14 percent who reduced an average 2.7 workers per firm.

The remaining 74 percent of owners made no net change in employment, according to the NFIB poll of 926 respondents.

The poll comes the day before the more comprehensive U.S. nonfarm payrolls report which is expected to show the economy added 75,000 jobs in August.

"The prospects for a good jobs report are dim," the NFIB said in its report.

On a seasonally adjusted basis, a net 5 percent of owners are planning to create new jobs over the next three months, up from 2 percent in July.

"These are more favorable signals for job creation in the coming months but are still historically weak readings," the report said.

http://www.huffingtonpost.com/...august_n_946321.html

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Yet they need two chief bosses.

quote:

Originally posted by ksazma:
Yet they need two chief bosses.

Maybe it is a ploy that they are using to collect some of Obama's Job financing, and come the end of the year they will help themselves to big bonuses as usual.

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On the other hand they may simply be out of business by the end of the year.

Banks have cash on their balance sheets. It is their P&L that is taking a hit from writing off bad loans and low interest based income. Not anticipating the magnitute of the housing collapse caused them to not adequately reserve for those loans.

quote:

Originally posted by ksazma:
Banks have cash on their balance sheets. It is their P&L that is taking a hit from writing off bad loans and low interest based income. Not anticipating the magnitute of the housing collapse caused them to not adequately reserve for those loans.

Correct, also the mark-to-market rules have left their balance-sheet tier-1 ratio in tatters so they have to de-leverage and in so doing growth has been stunted. Couple that with the reduction/divestment of non-core business, the reduction in headcount is not surprising.

US is collapsing: ex-treasury secretary
Tue Sep 13, 2011

A former US treasury secretary says the United States is collapsing due to a major economic crisis and needs long-term economic plans to recover.


In an article written for Newsweek, Lawrence Summers commented on US President Barack Obama's short-term plan, saying, “We need not a one-year but a 10-year commitment to rebuilding the country.”

Summers, who was treasury secretary under President Bill Clinton, said the United States is underperforming, millions are out of work, and tens of millions have depressed incomes.

Referring to Obama's recent address to Congress on job creation, he added, “Obama was clear about what everyone, from storekeepers to economists, from corporate CEOs to unemployed workers, knows: until there is more demand for their products, firms will not hire more workers.”

Summers said Obama was right to focus on creating demand, noting that to create demand the country's crumbling infrastructure should be rebuilt.

“If a moment when the government can borrow for 10 years at less than 2 percent (and) when unemployment among construction workers is well into double digits… is not the moment for infrastructure investment, it is hard to imagine when that time will come,” he argued.

He warned that the economic situation will continue to deteriorate “if government does not do its part in pushing the economy forward -- not just this year, but for years to come.”

Lawrence Henry Summers served as the 71st US treasury secretary from 1999 to 2001 under President Bill Clinton. He was the 27th president of Harvard University from 2001 to 2006. Summers also directed the US National Economic Council for President Barack Obama until November 2010.

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The day Obama was sworn in he should have created a national reconstruction dept to create a national re-construction bill to improve on the nation's infrastructure and that would have added the jolt the economy needed .

quote:

Originally posted by kidmost:
The day Obama was sworn in he should have created a national reconstruction dept to create a national re-construction bill to improve on the nation's infrastructure and that would have added the jolt the economy needed .

Exactly. Because those manufacturing jobs are gone forever. Maybe tariffing would coerce the return of some of those jobs but I think it is already too far gone out of control. In a way one can view the shipping out of those jobs as a Homeland Security threat since it has a devastating effect on our way of life.

quote:

Referring to Obama's recent address to Congress on job creation, he added, “Obama was clear about what everyone, from storekeepers to economists, from corporate CEOs to unemployed workers, knows: until there is more demand for their products, firms will not hire more workers.”

What product? Most of what we are selling is other countries' shit. We hardly produce anything tangible anymore. That more than anything has been the destructive force to our economy.

quote:

Originally posted by ksazma:

quote:

Originally posted by kidmost:
The day Obama was sworn in he should have created a national reconstruction dept to create a national re-construction bill to improve on the nation's infrastructure and that would have added the jolt the economy needed .

Exactly. Because those manufacturing jobs are gone forever. Maybe tariffing would coerce the return of some of those jobs but I think it is already too far gone out of control. In a way one can view the shipping out of those jobs as a Homeland Security threat since it has a devastating effect on our way of life.

Not gone forever, but some tax rules need to inject viability in mid to high tech jobs. Approx 30% of the US output is manufacture.

quote:

Originally posted by ksazma:

quote:

Referring to Obama's recent address to Congress on job creation, he added, “Obama was clear about what everyone, from storekeepers to economists, from corporate CEOs to unemployed workers, knows: until there is more demand for their products, firms will not hire more workers.”

What product? Most of what we are selling is other countries' shit. We hardly produce anything tangible anymore. That more than anything has been the destructive force to our economy.

Banna, you nevva see dem F-29's and tings we mek rite hey.

quote:

Originally posted by baseman:

quote:

Originally posted by ksazma:

quote:

Referring to Obama's recent address to Congress on job creation, he added, “Obama was clear about what everyone, from storekeepers to economists, from corporate CEOs to unemployed workers, knows: until there is more demand for their products, firms will not hire more workers.”

What product? Most of what we are selling is other countries' shit. We hardly produce anything tangible anymore. That more than anything has been the destructive force to our economy.

Banna, you nevva see dem F-29's and tings we mek rite hey.

OH rass..add another 30000 to the poverty liss rass...thi sis the GREAT USA for you...millions living in POVERTY...what a shame