We lost 11000 jobs last month. This is yet another month of job losses, something that is rather troubling. The service sector has also lost more jobs too, down form a gain in services jobs last month. However, this is the first time that the jobs losses is in 5 figures not 6; and manufacturing is showing some better signs too.

Firstly, I would look at the negative. 11 000 is still a lot of jobs lost. It still would equate to about 45000 mouths to feed. It also adds to our debt due to tax receipts and food stamps. The human loss too is extremely sad.

The main problem of housing and banking sectors are not being looked into as of yet. While it was the housing sector that caused our economy to come to her knees, it was banking that gushed rocket fuel at the naked flame. Only 3% of housing owners defaulted payment, something that should not have brought an economy to her knees. Rather it was the terrible banking processes that ballooned it with what I term as sucker banking; where someone benefits of another’s demise. The EU calls it casino banking. Fixture to both these sectors, are all but non-existent. Both parties are equally responsible for this.

Too big to fail is also a problem that we would experience in the future. Nothing is being done. While studies have been carried out that show and warranted the bailouts last year (something I was opposed to); no studies have shown how we can stop these banks from gambling with our money and risk losing it all.

The last negative would have to be that more jobs were lost in the services sector. The services sector accounts for a large number of jobs, and the fact that it has lost jobs yet again, since it has increased the number of jobs the last time round, is rather disappointing.

Now for the positives. What a number! I wonder if this is all in anticipation of Black Friday, which failed miserably, or Christmas, or is this due to the jobs numbers catching up with the rest of the economy! If it is the latter, we have the best Christmas that our country has seen in a very long time!

This is the first time that the economy has shown a 5 digit job loss report in a very long time. That is how pathetic the economy has been for years! If, and it is a very big if, this is a beginning of a set of positive news for President Obama’s administration, then I think that President Obama should go down in history positively. President Reagan was given a problem that was no where as bad as this and he took 2 years to turn the economy around. This is a feat that Republicans often boast about; now that record is about to be smashed.

The more positive good news is coming out of the manufacturing sector. As everybody, from Paul Krugman to Peter Schiff, agrees that for the American economy to be back to its best, manufacturing has to pick up. Manufacturing must return as the main economic player, else we would be in the hole yet again.

It is manufacturing that has greatly decreased the jobs figure. If this is to carry on in this month, I can assure the readers that : America is BACK!. But yet again, this is the situation of yet another big if. Still it is the first step; we can wait for eager anticipation for the next.

To sum it all off, I would reiterate my demand. We need to get the jobs market back to what it was in 2006. We need to get back the 7 million jobs we lost, on top of the 2 million new jobs for the fresh graduates. Should we not get there, we have failed as a country. I however, think that we should take recovery a step at a time.

After all, Confucius said that “ The journey of a thousand miles begins with one small step.”

Related articles by Zemanta
Enhanced by Zemanta