Steve Goldstein
Last month’s 117,000 expansions in nonfarm payrolls wasn’t even strong enough to meet population growth — and the August report may even be worse. Economists polled by MarketWatch are expecting the Labor Department on Friday to report just 46,000 jobs outside of the farm sector created during the month.
There also will be the negative impact from the now-concluded strike of Verizon workers, which has shown up in the unemployment benefit filings. Resler estimates a 45,000 reduction from Verizon alone.
The view that the U.S. will avoid a lost decade because the policy response was quicker and bigger than in Japan is not very convincing when the U.S. economic performance has already been worse than Japan’s,” they said in a note to clients. …….. “The U.S. could easily be facing another five years of weak economic growth. And the argument that if the U.S. was going to fall into deflation it would already have done so doesn’t stand up when it took nine years for deflation to take hold in Japan.”
There also will be the negative impact from the now-concluded strike of Verizon workers, which has shown up in the unemployment benefit filings. Resler estimates a 45,000 reduction from Verizon alone.
The view that the U.S. will avoid a lost decade because the policy response was quicker and bigger than in Japan is not very convincing when the U.S. economic performance has already been worse than Japan’s,” they said in a note to clients. …….. “The U.S. could easily be facing another five years of weak economic growth. And the argument that if the U.S. was going to fall into deflation it would already have done so doesn’t stand up when it took nine years for deflation to take hold in Japan.”
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