Labour markets remain weak--Bob (fast)
>> economists note the jobs numbers are a lagging indicator. but if the labor department -- if the labor picture doesn’t start improving soon, that may threat ten economic recovery.
>> managers at verizon communications are learning to shimmy of telephone poles t company is training them to repair damaged wires as it braces for a strike. some 78,000 workers are prepared to walk off job when their cracks with the nation’s biggest local telephone company expire at midnight on saturday. one analyst says a walkout could last a month affecting service in 13 states from maine to the district of columbia yeah. no progress was reported in mediated contract talks t unions wants more freedom to organize employees of verizon wirelessed guarantees members will be used to expand verizon’s high speed internet network. the company is pushing for lower healthcare costs and greater freedom to transfer workers. as we’ve been telling you the u.s. economy unexpectedly lost more jobs in july with 44,000 jobs eliminated, the sixth straight decline. economists had expected an increase of 10,000. the unemployment rate did decline to 6.% from 6.4%. and today’s labor report further supports what economists are calling a jobless recovery. and as bob bowden reports, if the labor market remains weak, it could threaten the overall economic recovery.
>> something is so wrong.
>> jeff is looking for a job. a 31-year-old brooklyn resident lost his dot-com job two years ago and has been hunting for a marketing position ever since.
>> it’s a 35-hour a week job looking for a job. it’s a lot of work and it’s not as much fun as working because you don’t necessarily get to see% -pthe fruits of your labor for a long time.
>> he’s not alone since the recession finished in 2001, company haves cut almost 1 million workers from their payrolls.
>> unfortunately we are in a state where the recovery so far has been very definitely subpar. this is a jobless recovery just like the 1991-1992 recovery is. >> while economists expect a modest increase in hiring in the months ahead, companies in struggling industries such as telecommunications, continue to reduce their workforces, including verizon, avaya, and at&t.
>> our total employment will probably trend down even though our revenues may turn around and grow.
>> economists say many businesses will remain reluctant to hire until demand picks up. this has many forecasters, including the office of management and budget, expecting unemployment to remain around 5.5% through 2004. labor economist jarrett burnstein of the economic policy institute, believes that will delay a full economic recovery.
>> that’s too high 0 generate the kinds of income and wage growth that consumers need to support a truly robust recovery. so the labor market itself while it’s often tagged as a lagging indicator, i believe in this case will continue to be a constraint on the strength of the recovery moving forward.
>> burnstein estimates the u.s. needs to create between 200,000 and 300,000 jobs every month, for unemployment to fall to 4%. that’s a level he and others consider necessary for a robust economic recovery. in the meantime, jeff sperber remains optimistic.
>> there is going to be a job, somebody will recognize my talent and ability and bring me on burden. it’s just a matter of find thanking right person at the right time.
>> bob bowden, bloomberg news.
>> shares of research in motion rose as much as 21% today, touching the highest level since april of last year. the maker of the blackberry email pager stock rose on speculation the company may be acquired by u pack or another company out there. research in motion has reported losses for the past three fiscal years and is expected to post another loss this year. but the ontario, canada-based company has more than 600,000 subscribers and rising sales forecast to grow almost 50%. analysts say a purchase would make sense for h.p.. that’s because its rival dell computers said it would sell wireless email and data services with good technology. that’s the name of the company. “good technology.” the stock has more than doubled this year as the company’s losses narrow, and a speculation about a takeover increases. shares of euro/dollar disney posted their biggest drop in nine years. the operator’s of europe’s largest theme park says it may not be able to repay loans because fewer people are visiting the park as the european economy slows down. walt disney owns 39% of the french company that operates the park. euro/dollar disney says it is currently able to pay its bills, but it has fallen below the lines of profitability agreed with banks when it last restructured its debt in 1994. some sports business news in golf, baseball and even some football out there. we’ll look at who is likely to buy baseball’s los angeles dodgers from rupert murdoch. is there tiger trouble in the tee box for nike?
