Category: Reviving the Economy

Last month 263,000 more Americans lost their jobs. Hopefully, most of those people have already started job hunting. In this economy the longer you wait to find a job, the harder it will be to find one. It's a theme I've been hearing over and over as I've interviewed companies, recruiters, and even the jobless the last couple of months.

Many who have been pink slipped have lost their jobs through no fault of their own. But, recruiters and job experts tell me some employers don't look favorably on a potential candidate who's been out of work longer than six months. So, if your search is extending that long, think about taking a class or perhaps getting certified in a special area. Recruiter Demetri Georgiadis says job candidates need to prove they've been improving their skills while on furlough.

I am only too happy to do "shopping" stories...as I have no problem admitting that shopping is my only real vice in life. I am not a frivolous spender...but I do like the touch and the smell of new clothes, whether for myself or my kids. I adore the rush that comes from making a purchase and the joy of hanging it in my closet. It doesn't really matter what the item is. What does matter and always has is price. When I buy something it's almost always on sale...either marked down or with a promotional coupon. You see I am a patient and careful shopper. When I find something that I really want (beyond commodity items) I will and can wait. Not always, but usually, it goes on sale. Do I ever pay full-price? Yes. I made one such purchase just last night. And, while I won't tell you what I bought, I will tell you that I have coveted it for six months.

A couple of months ago NBR assignment editor, Kira Rockell, approached me about doing a slice-of-life piece on unemployment. The idea was to look at life from a jobless person's perspective. I was a little dubious about the assignment. Being without work and struggling to make ends meet are not topics most folks like to discuss, especially on television. But, I cast out my net to contacts, hoping we would find someone.

I was overwhelmed by the response. I received calls and emails from more than a dozen people who were eager to share their stories with me. Talking to me, even over the phone and via the internet, seemed to be cathartic. Everyone's story was compelling, so it was hard to select one. That's why we decided to tell three stories in my series "Once Upon a Job." Some of the people we didn't profile will appear in a panel discussion on our Labor Day special

Have you noticed that the Dow is getting close to the 10,000 level? There's a lot of talk -- and excitement -- on Wall Street about Dow 10,000. I'm prepared for the big day. I've dusted off my Dow 10,000 baseball cap. It's now a faded shade of navy blue with "Dow 10,000" embroidered in white on the front. I'm ready to wear it when the time comes.

I got the cap back in March of 1999 when the New York Stock Exchange gave them out to mark the first time the Dow Jones Industrial Average closed above 10,000. To be precise, the Dow closed at 10,006.78 on that day -- March 29 -- with a gain of 184 points.

The mood was euphoric on the floor of the Exchange. It was an exciting day in the markets. Crossing 10,000 was a psychological milestone in Wall Street history. More importantly, Dow 10,000 represented a sign of prosperity for Americans and the U.S. economy. As NYSE's then chairman, Dick Grasso, told Nightly Business Report on that historic day, "This is an extraordinary time not just for the New York Stock Exchange, but really for all Americans because today with Dow at 10,000 there are 70 million Americans who are participating directly in the equity markets."

I have a love/hate relationship with networking. In all its grammatical forms, the word itself irritates me. I have friends who talk about "plugging in to their network," or attending "networking happy hours," or "networking to find a new job." Noun, adjective, verb - any way you use or conjugate it, to me the word just sounds so forced, as if you suddenly whip out your magical networking cape and become a Serious and Interesting Person. "Hello, I am Dana Bate, and I am networking now."

As I reported in my story, 56% of the jobless aren't collecting or don't qualify for unemployment benefits. New college grads and people re-entering the workforce make up the largest number of people looking for work, but don't qualify for the program. The self-employed are exempt. Also, there are people who have simply not applied for benefits. Some may not know how to do it, and some may think they don't need it if they find a job quickly. But in this shaky economic environment, that could be a mistake.

It's clear that inflation is not much of a threat these days. But what about deflation, a sustained period of falling prices and wages? After all, today's producer price index showed prices are falling in most sectors. And incomes certainly haven't been rising much lately, as most workers know.

The two economists I interviewed today, Jonathan Basile at Credit Suisse and Steven Wieting at Citi, don't see an immediate deflation threat.

But according to the AP, Pierre Ellis, senior economist at Decision Economics told his clients: "Deflation-worriers will find some cause for concern in the general picture, though the broad pattern remains one of gently oscillating monthly price changes."

Careful what you wish for could be the lesson for auto dealers in the government's Cash for Clunkers program. The program has been highly successful moving new car inventory and bringing people into the showrooms. But it's also been a bureaucratic nightmare as dealers slog through paperwork and wait for the government to pay the millions for the clunkers on their lots.

Fairfax Hyundai President Sam Mansouri hired extra help to process the deals and has yet to get paid one dime from the government. He says he wishes just one claim will get paid, so he can use it as a model. He also worries about the deals that might be rejected. In the meantime, he's keeping the clunkers on back lots, which are usually reserved for new cars. His inventory of new cars is so small now, it's not a problem. He says he doesn't think the program will hurt sales down the road, but he's not sure.

My story today was really depressing.

I've been trying to feel more optimistic about the economy. But I couldn't sustain that today. Not after hearing Dean Baker and Heidi Shierholz explain how bad the job market is.

Just to stay even with the new workers entering the job market every year, the economy needs to produce about 130,000 jobs a month. We're losing more than 300,000 jobs. To begin whittling down the unemployment rate, you need job growth of around 300,000 jobs a month.

That means we need a turnaround of 600,000 jobs a month!

We're a long way away.

The confusion around the Cash for Clunkers (or CARS) program continues. The Senate may take up the bill Wednesday or Thursday, but an extension of the program is anything but a done deal.

Today, Senators Diane Feinstein (D-California) and Susan Collins (R-Maine) announced their support for extending the program. Despite earlier concerns, they are happy with how consumers are using the program, particularly the increase in the number of fuel efficient vehicles purchased. The Department of Transportation found on average people using the program bought cars, SUVs, and trucks that got 9.6 more miles per gallon than their old "clunkers."