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Business  Finances and Markets Streak dramatic evidence of labor market in the U.S.
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Streak dramatic evidence of labor market in the U.S. |
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Sunday, 07 December 2008 |
U.S. authorities have released statistical data for each disappointing labor market in the country. In November companies from non-agricultural sector have closed nearly 500 thousand jobs and the level of unemployment noted consequential increase.
Data for non-agricultural employment suggest that job positions in the U.S. decreased by 533 thousand in November, which is the largest decline for the past 34 years. This significantly exceeded the preliminary estimates of analysts who were contraction of around 335 thousand.
Along with this level of unemployment has jumped to 6.7 percent, which is the highest value from 1993 onwards.
Today's fall in the number of job positions in the U.S. is 11th in succession and comes after the news of reductions in the amount of 320 thousand items in October. Details to last month showed that more than 1.5 million Americans have lost their job in 2008.
Abbreviations is very likely to continue next year as the decrease in lending and lower investment has strongly negative impact on U.S. companies. Stabilization hopes are aimed primarily at the country's newly elected president Barak Obama, who announced a plan to create or preserve 2.5 million jobs over the next two years.
Problems in the labor market play a key role in determining the start of the recession in the U.S.. Earlier this week by the research organization that monitored the business cycles of the U.S. economy announced that the country has entered into recession in December last year. Namely it was last month that the statistics reported growth in employment.
During this week the dollar moving in a narrow corridor against the euro yesterday after a setback for aggressive reduction in interest rates in the euro, today the U.S. currency regained his field Wednesday. At 15:35 today a euro exchanged for 1.2658 dollars.
European Central Bank reduced the basic rate in the euro by 75 basis points to 2.50 percent. Today's reduction was greater than the expectations of experts who forecast a moderate decline in interest rates to 2.75 percent.
This is the largest single reduction in interest rates in the euro for the past 10 years. The decrease comes after central banks around the world dramatically decreased basic rates this week to razmrazyat credit markets.
Earlier today the Swedish central bank lowered interest rates by 175 basis points, and their colleagues from the UK reduced interest rates by 100 basis points.
Most analysts cited by Bloomberg, welcomed the decision of Trichet and his staff, but commented that perhaps it had to happen earlier. So far, despite the severity of the crisis, the ECB reduced interest rates only 2 times by 50 basis points, which make it one of the most conservative central banks in the world.
Despite a big drop than expected euro is relatively stable to hold dollars. At present, EUR / USD is quoted to 1.2618 dollars to euros.
Sweden podnese surprise on the exchange markets today, resorting to the most aggressive move by all countries to take a course of lowering interest rates. The central bank divest interest from 3.75 percent to 2 percent, which is far more than the preliminary estimates of analysts.
Today's reduction is the largest for the past 16 years, the main reason for its invasion of the country is in recession. Aggressive move was supported by data on inflation, which marks its biggest decline for the past three years.
Yesterday the Organization for Economic Cooperation and Development made a recommendation to Sweden to lower interest by one percentage point now and more so by approximately the end of the year. Analysts expected a similar discovery namely, the prevailing forecasts to tear down 2.75 percent.
Sweden thus became one country has taken a strong reduction in interest rates. This week saw such acts from Australia and yesterday and New Zealand. Today's subject is expected decisions of the central banks of England and the euro, which will announce their decisions later. |
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