Grim news from private employers; labor costs up

[Xipe Totec]

Source: Reuters

NEW YORK (Reuters) - The weakening U.S. job market dealt another blow to the struggling economy on Wednesday, while more bad news emerged from the inflation front.

U.S. private employment fell unexpectedly for the first time in nearly five years in February, according to a private report that does not bode well for the government's key U.S. payrolls release on Friday.

Economic optimists may take heart from separate report showing planned layoffs by U.S. companies fell in February, but even that data suggested that the housing-led economic slowdown was spreading to other sectors.

"The headline (ADP) number showed a decline of 23,000, which was the first decline in this series since the economy was coming out of the last recession so it is notable," said Joel Prakken, chairman of Macroeconomic Advisers in St. Louis, Missouri, a joint developer of the ADP report.


Read more: http://news.yahoo.com/s/nm/20080305/bs_nm/usa_economy_dc_1

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So, workers getting fatter paychecks is grim news?

Remember that, the next time somebody tells you that what's good for the economy is good for you.

[hobbit709]

1. The only fatter checks are going to the bosses.

I don't don't know of any wage slaves getting bigger checks unless they're working more hours.

[Xipe Totec]

2. Then, good news everyone!

productivity is up!

[Igel]

7. Payroll costs for my wife--she's salaried--

have really increased in the last few years.

Her paycheck hasn't increased that much; however her health insurance costs have. Include the cost of health insurance in employee compensation numbers for the last few years and you find that compensation's been ahead of the CPI by a fair bit. Those without health insurance have lost out; those with health insurance have typically had to pay more for it, but their out-of-pocket increase has been less than you'd expect.

It pays to distinguish between compensation costs and income.

[rmgarrette64]

8. Ours have gone up

My husband especially has gotten several raises and a recent big promotion. His salary has doubled over the last 7 years, and it didn't start from a bad base either. Mine has gone up, but not nearly as dramatically.

I have no idea how typical we are, but there are certainly some people who are doing well in the current economy.

R. Garrett

[Donnachaidh]

3. uhh no higher paychecks here

in fact, neighbor and others had to take a double digit CUT in order to stay on the job that provides the family medical insurance. But he's "lucky", or so his boss says. They laid off 80% of the others, with little severance and not much else but paperwork for COBRA.

[Xipe Totec]

6. Thank you for helping the Economy!

Your sacrifice will help investors make the profits they so richly deserve.

:crazy:

[napi21]

4. Maybe they should post the "Corporate Profit #" alongside the

increased labor cost #? Gov't employees all get a yearly pay raise! YES that increases government labor costs, but I don't hear any of them bitching about THAT! It also doesn't appear that corporate profit #'s and Sr. management bonuses (other than retailsers & things associated with housing) are suffering.

[OwnedByFerrets]

5. Damn those Democrats.....

for raising the minimum wage to $2.25. Its all their fault.:sarcasm:

[ReformedChris]

9. Bet some of those companies are salivating over the outsourcing possibilities.. nt

[Xithras]

10. Labor costs includes healthcare costs.

As I discuss here sometimes, I have a small company with 8 employees (we do POS software development for retail stores). Our labor costs have risen aboutt 8% in the past year, primarily due to steadily rising healthcare premiums. I couldn't even afford to give my employees a COLA last year. We've been operating at about a 10% loss the last couple of quarters, and if things don't pick up by June I'll have to do my first ever layoffs.

The good news is that I've already penciled out that laying off two employees will free up enough funds to not only eliminate the shortfall, but to offer my remaining employees their first COLA in two years. The bad news is that none of my employees can really afford to be laid off in the current market. The worse news is that, if the market in general doesn't improve greatly, our reserves will be depleted by the middle of next year and I'll have to lay everyone else off and close my doors.

[Warpy]

11. The same report cited falling wages

so the increased labor costs are all increased offshore labor costs due to the fall in the dollar.

Americans are getting the shaft under this administration.