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| Re: Why the unemployment rate is dropping (1298959) | |||
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Re: Why the unemployment rate is dropping |
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Posted by Dave on Tue Jul 7 21:31:55 2015, in response to Re: Why the unemployment rate is dropping, posted by bingbong on Tue Jul 7 19:46:34 2015. Why must you opine on things you know nothing about?From March 2000 through the end of that year, the S&P 500 Index fell 19.4%. The index includes 500 leading companies; do you think they're all in the dot-com sector? The economy began losing strength in 2000, contrary to your uniformed opinion. Manufacturing’s downturn started in late summer of 2000 as businesses sharply reduced spending on machinery, computers, and other capital goods. Falling orders led factories to cut more than 1 million jobs from their payrolls. This retrenchment led to job losses in wholesale trade and transportation, and to a massive cutback in factories’ use of temporary help services. In the fourth quarter of 1999, employment had barely begun to recover from the losses associated with the 1998 Asian currency crisis. Even during that period, hiring was minimal, and by the third quarter of 2000 the job losses resumed. By late summer of 2000, U.S. automakers anticipated a decline in overall demand for new cars and light trucks. They responded by reducing both output and employment. The production cutbacks further affected second-tier suppliers such as auto-related manufacturing industries (automotive stampings and flat glass). Paper and allied products, like primary metals, suffered from a combination of falling demand from other domestic manufacturers and a worsening trade outlook, i.e., falling export demand. At the same time that the economic slowdown in the U.S. hurt domestic demand for container board for shipping, exports of paper and allied products also fell sharply. For producers of IT equipment (computers, semi-conductors, and communications equipment), orders dropped late in 2000, sparking layoffs. For the year, IT manufacturers reduced their ranks by 188,000 jobs, directly accounting for 15.6% of manufacturing’s job losses. I could go on but I proved my point...that you know nothing about this topic. |
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