More on the Consumer & Unemployment

More links on the state of the American Consumer and today’s ugly BLS Nonfarm payroll report:

U.S. bank card delinquencies hit record high (
Delinquencies in U.S. bank cards rose in the second quarter to 5 percent of all accounts, while delinquencies in direct auto loans showed improvement, dropping to 2.46 percent, the American Bankers Association said on Thursday.

The Downside of Reducing Debt ( )
The story of the past few years in a few sentences: U.S. financial firms, other businesses and families went on a borrowing binge. It was fun. Lenders and investors lent too freely and didn’t charge enough to cover risks they were taking. When borrowers couldn’t pay the loans and the collateral they pledged wasn’t sufficient to cover the loans, a lot of lenders lost money. That wasn’t fun.

Rosenberg: “We are certainly in a deflationary state” ( )
Fueled by overcapacity, shrinking credit, reduced corporate spending and falling consumer demand, Deflation is taking root in global economies

Recession Rising Like Phoenix With Area Delinquencies Surging ( )
Drive up to the Peaks Corporate Park in north Scottsdale, Arizona, and the only person you’ll encounter at the luxury office complex is a security guard.

INSTANT VIEW : September payrolls fall by 263K ( )
U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, according to a government report on Friday that fueled fears the weak labor market could undermine economic recovery.

Early Job Cuts Worse Than First Thought, as More Companies Go Belly Up ( )
The loss of 263,000 jobs last month brings the total drop in U.S. employment to 7.6 million since the recession began — and revisions suggest the losses could turn out to be even steeper

Comparing This Recession to Previous Ones: Job Losses ( )
The chart above shows job losses in this recession compared to recent ones, with the dark blue line representing the current downturn. Since the recession began in December 2007, the economy has had a net loss of about 5.2 percent of its nonfarm payroll jobs.

Wages, Hours Stagnate As Stiglitz Warns Of Deflation ( )
With unemployment on the rise in September, average hourly wages grew by a single penny, to $18.67. The length of the average workweek fell back by 0.1 hours to its historic low of 33 hours, first reached in June.

Chart: Average Job Search Hits All-Time High as Chronic Unemployment Sets In ( )
As the jobless rate has continued its stubborn climb, reaching 9.8 percent today, chronic unemployment has been a major driver. The pace of layoffs has slowed from the fall and winter months, but companies aren’t yet adding new workers. If you get laid off, you risk finding yourself in a tough spot.


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