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THURSDAY, NOVEMBER 26, 2009
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11

In Recovery, Business Will Profit at Workers' Expense

Short-term outlook 'great for business, terrible for households'

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(Newser) – The economy is slowly improving, but companies will see the benefits long before the unemployed and underemployed will, Bloomberg reports. A Department of Labor report released yesterday found that the average workweek is at a near-record low of 33.1 hours. The lack of uptick in part-time hours is an indicator that "payrolls aren’t turning positive any time soon,” a Deutsche Bank economist says.

With labor costs staying low, the economic growth expected in the near term will plump company profits, not family budgets. "It's disappointing and it tells us that we are not quite there yet,” one economist said of the report. The outlook in the months to come, he says, is "great for business and terrible for households.” An analyst at Adecco predicts that unemployment, which hit 9.7% last month, will rise to 10% before the economy starts adding jobs some time next year. 

The average workweek in the US last month was 33.1 hour last month, up slightly from the record low of 33 hours in June.
The average workweek in the US last month was 33.1 hour last month, up slightly from the record low of 33 hours in June.   (Shutter Stock)
Jim Ceci, left, and Brenda Michael listen to a recruiter while attending a job fair Thursday, Sept. 3, 2009, in Romulus, Mich. The unemployment rate rose to 9.7% last month.
Jim Ceci, left, and Brenda Michael listen to a recruiter while attending a job fair Thursday, Sept. 3, 2009, in Romulus, Mich. The unemployment rate rose to 9.7% last month.   (AP Photo/Paul Sancya)
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It tells us payrolls aren’t turning positive any time soon, This wasn’t a friendly report.
- Joseph LaVorgna chief US economist at Deutsche Bank Securities Inc. in New York

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11 comments
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SilenceDogood
Sep 5, 09 9:26 AM CDT
I think that stating that companies will increase profits is a gross exaggeration of the truth. Business in America is in huge financial stress, the economy is hurting everyone. To state that companies will show profits before hiring more people is obvious, they need to have profits in order to hire people. “Great for Business” what a pathetic excuse for journalism, an obvious attempt to demonize the business community as the bad guys. Reply
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-3
IN RESPONSE:
WallyEFunk
Sep 5, 09 9:46 AM CDT
U say companies increase profits gross exaggeration , Next sentence have to show profit obvious.So U agree with the article ? It is just stating facts, most PPL don't think about.They will have to have money before they can hire. Don't get " to demonize the business community."
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0
LibertyMan
Sep 5, 09 9:41 AM CDT
Well said Sir! More left wing drivel from the increasing liberal bias of Newser editors. Who runs their HR program over there anyway? It must be outsourced to the DNC. All graduates from left wing colleges and universities to be sure. WHO among the Newser editorial staff is the voice of conservationism? WHO? This heroic and lonely champion of free speech and honest journalism must be shouted down at every staff meeting if such a person even exists. This person is probably secretly applying to the Wall Street Journal every chance they get hoping to escape this den of liberal activist "journalists. Reply
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-5
IN RESPONSE:
JoeQ
Sep 5, 09 11:15 AM CDT
If you're not a mouthpiece for the right, then you have to be liberal. Keep up that kind of ridiculous polarizing logic and the GOP will remain marginalized forever.
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+6
IN RESPONSE:
dax
Sep 5, 09 12:48 PM CDT
If Rightwing drivel is your preference, then you can beat your keys on over to michellemalkin.com or the like.
Vote up! Vote down!
+1

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