Economic Growth with High Unemployment

October 6, 2010 at 12:06 pm Leave a comment

Wednesday October 6, 2010, before the start of trading, private payroll processor Automatic Data Processing Inc. (ADP) said that private sector employment fell by 39,000 jobs in September following a revised increase of 10,000 jobs in August.

The decrease came as a surprise to economists, who had expected employment to increase by about 18,000 jobs compared to the loss of 10,000 jobs originally reported for the previous month.

With the upward revision to the data for the previous month, the drop in jobs reported for September marks the first decrease in private sector employment reported by ADP since January.

However, ADP noted that the average monthly gain in employment over the seven previous months was a relatively modest 34,000, adding,

Juggling small numbers left and right: “There simply is no momentum in employment.”

Corporate profits are still rising, while the job situation does not better. All government programs to sponsor employment failed and with the wave of mergers and acquisitions ahead of us, a significant change is not yet seen.

Key Consumer Goods Companies Announcements:

The discount wholesaler Costco (COST) said its fourth quarter net income rose to 97 cents per share on an 8 percent increase in net sales to $23.59 billion. Analysts estimated earnings of 95 cents per share on revenues of $24.22 billion.

Johnson & Johnson (JNJ) announced that it has reached an agreement to buy all outstanding shares of Crucell (CRXL) it does not already own for about 1.75 billion Euros in an all-cash offer. Johnson & Johnson currently owns 17.9 percent of Crucell’s outstanding shares.

By the artificial amount of money coming to the market as a result of government interference (see our article: bad unemployment numbers do no more shake the market on its way up.

Entry filed under: Corporate Earnings, Economy, Financial Market Investment, Stock Market. Tags: , , , , , , , , .

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