Month: December 2012

Why the Unemployment Rate Falling Is Not Good News

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“Convincing millions of Americans they don’t want a job or compelling desperate workers to settle for part time work has been the Obama Administration’s most effective jobs program.”  – Peter Morici

Adding to the deficit to pay for it is yet another issue.

The economy added 146,000 jobs in November, up a bit from 138, 000 in October. The Dept. of Labor reported that Unemployment fell to 7.7 percent, largely because 542,000 additional adults chose not to look for work.

In the weakest recovery since the Great Depression, most of the reduction in unemployment from its 10.0 percent peak in October 2009 has been accomplished through a significant drop in the percentage of adults working or looking for work.

Were adult labor-force participation the same today, the unemployment rate would be 9.7 percent.

Hooray! Not really.
Hooray! Not really This is only a small part of the real unemployment picture.

Adding more than 8 million part time workers who can’t find full time work, and discouraged workers no longer looking for work, the unemployment rate becomes 14.4 percent. It rose above 14 percent in the wake of the financial crisis and remains stuck there.

Underemployment is even more onerous.
Underemployment is even more onerous.

Gallup tracks underemployment monthly as well, and the official Labor Dept. figures  seem to be about three percentage points below those of Gallup.

Hmmmm?

Graphs courtesy of Policymic

Peter Morici is an economist and professor at the Smith School of Business, University of Maryland School, and a widely published columnist.

November 2012 ISM Reports- Manufacturing Contracting

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The ISM manufacturing index indicated contraction in November. PMI was at  49.5% in November, down from 51.7% in October. 

US manufacturing shrank to its lowest level since July 2009, at the end of the Great Recession.
US manufacturing shrank to its lowest level since July 2009, at the end of the Great Recession.

This confirms  the trend we identified in our October Business Trends Report- precision machining shipments have fallen to a rate below those of 2011.

The ISM  PMI report was expected to remain at October’s level of 51.7.

More disappointment:

The employment index was at 48.4%, down from 52.1%, and the new orders index  was at 50.3%, down from 54.2%.

Why this is scary:

Weakness in manufacturing makes these ratios even worse.
Weakness in manufacturing makes these ratios even worse.

Calculated Risk Graph

Zero Hedge Tax Burden

OSHA Updates General Industry Digest

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OSHA has updated their form 2201 General Industry Digest for 2012.

106 pages of comprehensive general industry safety information
106 pages of comprehensive general industry safety information

This publication provides a general overview of standards-related topics. This publication does not alter or determine compliance responsibilities which are set forth in OSHA standards and the Occupational Safety and Health Act.

The General Industry Digest was last published in 2001. It summarizes the requirements of OSHA’s general  industry safety and health standards. It is a good single source document to make you aware of key occupational safety issues.

As  enforcement policy may change over time,  and be different between  different state enforcement agencies (or field personnel) this guide should not be considered authoritative- merely informational.

For additional guidance on OSHA compliance requirements, the reader should consult current administrative interpretations and decisions by the Occupational Safety and Health Review Commission and the courts as well as the specific regulations which can be found online.

Here is link to your free 106 page .pdf OSHA General Industry Digest 2012 PDF