Page 55 - MIN.VOS 3 OCT,2015
P. 55
U.S. NEWS A7
Saturday 3 October 2015
US Financial Front:
An ailing global economy starts to weigh on US job market
C. S. RUGABER bled as fears of a global Job seekers listen as Kaysara Mandry, center, talks about job up just 2.2 percent in the
AP Economics Writer slowdown have intensified. past year — far below the
WASHINGTON (AP) — A Volatile financial markets opportunities at the Domino’s booth during a job fair in Miami 3.5 percent or 4 percent
sagging global economy can make businesses too considered healthy.
has finally caught up with anxious to expand and hire. Lakes, Fla. U.S. hiring slowed sharply and previous job gains Many economists now ex-
the United States. “We’re back to a period of pect no rate hike until 2016,
Nervous employers pulled what I call corporate cau- were revised lower amid a broad slowdown in the global though some still think the
back on hiring in August tion,” says Nariman Beh- Fed will begin raising rates
and September as China’s ravesh, chief economist economy. The Labor Department says employers added just in December — a step that
economy slowed, global at IHS. “It’s wait and see. If would eventually send con-
markets sank and foreigners things stabilize, we could 142,000 jobs in September 2015 as manufacturers and oil sumer and business bor-
bought fewer U.S. goods. see hiring come back.” rowing rates up.
Friday’s monthly jobs report On Friday, the Dow Jones drillers shed workers. (AP Photo/Alan Diaz) Some analysts, like Michael
from the government sug- industrial average fell Gapen, chief U.S. econo-
gested that the U.S. econ- about 200 points soon after whether to raise rates from to see further hiring and pay mist at Barclays Capital,
omy, which has been out- the jobs report was issued record lows. Fed Chair Ja- growth for reassurance that say they remain confident
shining others around the before recovering to close net Yellen has said that the inflation is edging toward in the economy’s resilience.
world, may be weakening. up 200. The yield on the 10- job market is nearly healed. the Fed’s 2 percent target. Gapen notes that the
Lackluster growth overseas year Treasury note dipped But she’s also said she wants Average hourly wages are threats from overseas re-
has reduced exports of U.S. below 2 percent, a sign that semble earlier periods in the
factory goods and cut into investors anticipate sluggish economic recovery when
the overseas profits of large growth and low inflation. anxiety about Europe’s fi-
companies. Canada, the Over the past year, the dol- nancial crisis slowed hiring
largest U.S. trading partner, lar has risen about 15 per- and roiled U.S. markets.q
is in recession. China, the cent against overseas cur-
second-largest economy rencies, making U.S. goods
after the United States, is costlier overseas and im-
growing far more slowly. ports cheaper. Declining
And emerging economies, exports have led many an-
from Brazil to Turkey, are alysts to slash their growth
straining to grow at all. estimates for the July-Sep-
A result is that economists tember quarter to a subpar
now expect the Federal 1.5 percent annual rate or
Reserve to delay a long- less.
awaited increase in inter- Heavy equipment maker
est rates, possibly until next Caterpillar has said it will
year. cut up to 5,000 jobs by
Employers added just year’s end. Lower oil prices
142,000 jobs in September, have hurt its sales of drilling
and the government sharp- equipment, and overseas
ly lowered its estimate of sales of its construction ma-
gains in July and August by chines have fallen.
a combined 59,000. Month- Hershey has said it will shed
ly job growth averaged a 300 positions in the U.S. this
mediocre 167,000 in the year after sales in China
July-September quarter, plunged.
down from 231,000 in the A host of other companies
April-June period. have announced layoffs
The unemployment rate re- in recent weeks, including
mained a low 5.1 percent, Wal-Mart, the world’s larg-
but only because many est retailer; ConAgra Foods,
Americans have stopped which makes Chef Bo-
looking for work and are yardee and Slim Jims; and
no longer counted as un- Chesapeake Energy, which
employed. The proportion has been hurt by lower oil
of adults who either have a prices.
job or are looking for one is The tepid pace of hiring
at a 38-year low. clouds the picture for the
U.S. stock prices have tum- Fed, which is considering
