Posts Tagged ‘job market’

Dead Cat Labor Market

Dead Cat Labor Market

Courtesy of Michael Panzner at Financial Armageddon 

Dead_cat

(Image: Source)

Rebound in the labor market? Looks more like a dead cat bounce, where a great many of the jobs being created are either temporarypart-timelow wage, or stripped down, like those detailed in the following CNNMoney.com report,"Say Goodbye to Full-Time Jobs with Benefits":

Jobs may be coming back, but they aren’t the same ones workers were used to.

Many of the jobs employers are adding are temporary or contract positions, rather than traditional full-time jobs with benefits. With unemployment remaining near 10%, employers have their pick of workers willing to accept less secure positions.

In 2005, the government estimated that 31% of U.S. workers were already so-called contingent workers. Experts say that number could increase to 40% or more in the next 10 years.

James Stoeckmann, senior practice leader at WorldatWork, a professional association of human resource executives, believes that full-time employees could become the minority of the nation’s workforce within 20 to 30 years, leaving employees without traditional benefits such as health coverage, paid vacations and retirement plans, that most workers take for granted today.

"The traditional job is not doomed. But it will increasingly have competition from other models, the most prominent is the independent contractor model," he said.

Doug Arms, senior vice president of Ajilon, a staffing firm, says about 90% of the positions his company is helping clients fill right now are on a contract basis.

"[Employers] are reluctant to bring on permanent employees too quickly," he said. "And the available candidate landscape is much different now. They’re a little more aggressive to take any position."

Cathy, who asked that her last name not be used, lost her job as a recruiter for a financial services firm in February 2009. She started working on a contract basis four months later. She believes that many employers are taking improper advantage of the weak labor market.

"I work in HR, I understand that sometimes you need to hire a contractor because you have a project and you won’t need the person when it’s done in three months," she said. "But that’s not what’s happening here."

Cathy said her co-workers who had permanent jobs didn’t treat her differently, but she still felt like a


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More on the Improved Labor Market

More on the Improved Labor Market

Courtesy of Jake at Econompic Data 

Some additional detail behind the improvement we’ve seen on the margin in the labor market year to date. The AP reports:

Job openings rose sharply earlier this year, a sign that employers might be preparing to step up hiring.

The number of openings in January rose about 7.6 percent, to 2.7 million, compared with December, the Labor Department said. And the job openings rate climbed to 2.1 percent, the highest in nearly a year. That rate measures available jobs as a percentage of total employment.

There are now about 5.5 unemployed people, on average, competing for each opening. That’s still far more than the 1.7 people who were competing for each opening when the recession began. But it’s down from just over 6 people per opening in December 2009.

The gradually brightening jobs picture corresponds to what many job search Web sites are reporting.

As can be seen below, while the number of openings has jumped, the level of hires has not necessarily improved (possibly partially explained by the wariness of those with jobs to make the plunge).

Job Situation

While not anywhere near normalized, the unemployed to job opening ratio has turned sharply.

unemployment to jobs openings ration
 
This will be another important metric to watch in coming months.
 
Source: BLS

 


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Still Shedding Jobs

Still Shedding Jobs

Courtesy of Econompic Data

Bloomberg reports:

Companies in the U.S. cut an estimated 169,000 jobs in November, according to a private report based on payroll data.

The drop, the smallest since July 2008, compares with a revised 195,000 decline the prior month, data from ADP Employer Services showed today. The figures were forecast to show a decline of 150,000 jobs, according to the median estimate of 32 economists in a Bloomberg survey.

The report signals the job market is still deteriorating and unemployment will probably climb further even as the economy is emerging from the worst recession since the 1930s. After overestimating payroll losses by 103,000 on average in the five months to September, ADP’s initial estimate for October was in line with the government’s payroll figures.

“Our economy is still a long way from adding jobs,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “Labor markets remain the one area where significant improvement in economic conditions has yet to manifest.”

ADP includes only private employment and doesn’t take into account hiring by government agencies.

ADP job gains/losses

Optimists will say this report shows "The Bleeding is Slowing‘, but the fact is that after shedding THIS many jobs and we are still losing 150k+ jobs per month is simply stunning.

Source: ADP

 


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Brace for a Wave of Foreclosures, the Dam is About to Break

Brace for a Wave of Foreclosures, the Dam is About to Break

Courtesy of Mish

A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.

• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.

• The aggregate property value for loans in a negative equity position was $3.4 trillion, which represents the total property value at risk of default. In California, the aggregate value of homes that are in negative equity was $969 billion, followed by Florida ($432 billion), New Jersey ($146 billion), Illinois ($146 billion) and Arizona ($140 billion). Los Angeles had over $310 billion in aggregate property value in a negative equity position, followed by New York ($183 billion), Miami ($152 billion), Washington, DC ($149 billion) and Chicago ($134 billion).

• The distribution of negative equity is heavily skewed to a small number of states as three states account for roughly half of all mortgage borrowers in a negative equity position. Nevada (66 percent) had the highest percentage with nearly two?thirds of mortgage borrowers in a negative equity position. In Arizona (51 percent) and Florida (49 percent), half of all mortgage borrowers were in a negative equity position. Michigan (48 percent) and California (42 percent) round out the top five states.

There are some interesting tables and graphs in the article that inquiring minds are investigating. Here are some partial alphabetical lists.

click on any chart in this post to see a sharper image

Negative Equity Share

Property Values and Loan-To-Equity Ratios

Nevada, not shown has a near-negative equity share of 68.9% and a Loan-To-Value ratio of a whopping 115%!

It is disingenuous to say there are only a half-dozen or so problem states, when the problem states are where people live. It is wrong to treat Alabama and Alaska the same as California or Florida.

Mortgage Facts and Figures – Select States

  • California has $2.4 trillion in mortgages debt. 42.0% of the properties have negative


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Phil's Favorites

Can Trump make real change as president?

 

Can Trump make real change as president?

Courtesy of Sharece Thrower, Vanderbilt University

Based on his erratic behavior during the campaign, many fear what Donald Trump will do in office. Some believe that his strong personality could lead to disastrous policies that could negatively affect health care, nuclear warfare and other aspects of our lives.

As a scholar of presidential power, I’d suggest such concerns are likely overblown. Despite his distinct individuality, Trump faces the same institutional constraints as any other president. In the end, he may be a more predictable president than many would believe.

From individual to the institutional

Political scientists have long been...



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Zero Hedge

Senate Confirms Mattis (Defense) & Kelly (Homeland) On Trump's First Day

Courtesy of ZeroHedge. View original post here.

Just hours after President Trump was sworn into office, amid Chuck Schumer's jabs over HUD, the Senate has confirmed retired Marine General James Mattis as defense secretary and retired Marine General John Kelly as homeland security secretary. They were both expected to be confirmed easily, and were, but Democrats promised fights over several other nominees.

Mattis was the first to be confirmed by a vote of 98...



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ValueWalk

Europe Rose Because Of Jurisdictional Competition

By The Foundation for Economic Education. Originally published at ValueWalk.

During the dark ages, nations like China were relatively advanced while Europeans were living in squalid huts.

Governments were forced to adopt better policies because labor and capital had significant ability to cross borders in search of less oppression.

But that began to change several hundred years ago. Europe experienced the enlightenment and industrial revolution while the empires of Asia languished.

What accounts for this dramatic shift?

I’m not going to pretend there’s a single explanation, but part of the answer is that Europe benefited from decentralization and jurisdictional competition. More specifically, governments were forced to adopt better policies because labor and capital had significant ability to cross borders in searc...



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Kimble Charting Solutions

Mr. President you want this to hold, says Joe Friday

Courtesy of Chris Kimble.

Consumer Confidence of late has continued to move higher, now reaching above the highs hit back in 2007. Long-Term S&P 500 returns are far below historical norms, when confidence is this high. We are not saying that high consumer confidence means the market is at a top!

Below is a look at the Advance/Decline line on a short-term basis.

CLICK ON CHART TO ENLARGE

Joe Friday Just The Facts; It could be important for support to hold, of this bearish rising wedge above.

...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Oil and Trump: Russians full of optimism in Davos (Reuters)

Twelve months ago, the mood of the Russian delegation at the World Economic Forum in Davos was distinctly gloomy, with oil prices near 12-year lows below $30 per barrel and Western sanctions depressing their economy and financial markets.

The Mortgage Market’s $1 Trillion Pocket of Worry (The Wall Street Journal)

Bonds backed by certain risky single-family mortgages topped $1 trillion for the first time in November, crossing that threshold amid rising warnings for one corner of the housing market.

...



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Chart School

Small Cap Losses Accelerate

Courtesy of Declan.

Small Caps again took the brunt of the selling as Shorts took advantage of yesterday's small rally back to former support (turned resistance) to enter positions. With the 'bull trap' in full effect, the next target down for the index is 1,308. Of supporting technicals, only Stochastics [39,1] is left to break its bullish alignment,


The S&P took a modest loss, but not enough to break it out of its consolidation. Volume was also lighter. With the Russell 2000 on the way down, it's suggesting the S&P will follow suit....

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Members' Corner

How To Poop At Work?

Courtesy of Nattering Naybob.

Once again it's "in the Toilet Thursday" or "Thursday's in the Loo". 

In our last episode, How to Poop On A Date? we were graced with a delicate shituation: what ever to do when your finally back at her place, snuggling in for a little "brown chicken brown cow" and you get hit with "Love Potion #2".

This week in How to Poop At Work? ,what to do when your at a big fancy pants meeting, when out of nowhere, you need to download a brown load?



...

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OpTrader

Swing trading portfolio - week of January 16th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

China's Bitcoin Exchanges Suspend Margin Trading

Courtesy of Zero Hedge

China's bitcoin traders who use the most popular bitcoin exchange not only in China, but also the entire world, BTCChina, were met with an unexpected warning on Friday:

Starting from January 12th, 2017, BTCChina has suspended margin loan service. If you have any questions, please contact Customer Service: support@btcc.com.

BTCChina, which commands over 37% of global bitcoin trading...

... wasn't alone.

Fo...



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Mapping The Market

If we try it enough, it will work.

Via Jean-Luc

Brownback wants Trump to emulate what he did in Kansas because it worked so well:

Sam Brownback Calls on Donald Trump to Mimic His Kansas Tax Plan

By RICHARD RUBIN and  WILL CONNORS

Sam Brownback, the Kansas governor whose tax cuts brought him political turmoil, recurring budget holes and sparse evidence of economic success, has a message for President-elect Donald Trump: Do what I did.

In 2013, Mr. Brownback set out to create a lean, business-friendly government in his state that other Republicans could replicate. He now faces a $350 million deficit when the Kansas legislature convenes in January and projections of a larger one in 2018. The state’s economy is flat and his party is fractured...

...

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Biotech

The Medicines Company: Insider Buying

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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Promotions

Phil's Stock World's Las Vegas Conference!

 

Come join us for the Phil's Stock World's Conference in Las Vegas!

Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017.            

Beginning Time:  8:00 am Sunday morning

Location: Caesar's Palace in Las Vegas

Notes

Caesar's has tentatively offered us rooms for $189 on Saturday night and $129 for Sunday night. However, we have to sign the contract ASAP. We need at least 10 people to pay me via Paypal or we may lose the best rate for the rooms. (Once we are guaranteed ten attendees, I will put up instructions to call the hotel for individual rooms.)

The more people who sign up,...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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