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summary home contents summary 01 U.S. Employment Restructuring Report Q2 2013

summary
home
contents
summary
01 US Labor
market trends
02 US regional
labor trends
03 most heavily
impacted sectors
04 US labor
market outlook
05 major
announced
US job layoffs
about this
report
➔ Conditions in the
US labor market, and the
economy more broadly,
have continued to improve
over the early part of 2013,
with the economic recovery
maintaining its momentum.
The jobs picture continues to
show modest improvement,
with claims for unemployment
benefits moving steadily
lower and the unemployment
rate also holding at a lower
level than a year ago.
The impact of the across-
the-board spending cuts
has largely been absorbed,
while the expansionary policy
3 | Employment Restructuring Report | united states edition Q2 2013
of the Federal Reserve has
cushioned any immediate
fallout, and helped to
sustain the green shoots
emerging across several key
sectors of the economy.
In particular, a revival in
housing prices, higher durable
goods orders and improved
consumer confidence all
confirm that the recovery
is on track, although still
lacking the robustness of
recent economic upturns.
Real GDP grew by a
respectable 2.4% annually
in the first quarter,
although this was a little
below expectations.
The number of layoffs
dropped in the first quarter
to approximately 339,000,
with the real bright spot
being the big fall in
manufacturing layoffs, which
were at an historical low.
The unemployment rate
remained at 7.5%, largely
unchanged on recent
months but down from
8.1% a year earlier.
Much attention has been
focused on when the Federal
Reserve will scale back its
monetary expansion, which
has been the main driver
behind the recovery thus far.
While the Fed has signalled
that the end might be not too
far off, it’s worth remembering
that the Fed’s own target is an
unemployment rate of 6.5%.
That rate of unemployment
is still some way off and will
require further substantial
economic strength. And
with inflation at around only
1% annually, there is no
immediate hurry for the Fed
to withdraw its helping hand.
There are still obstacles to
global recovery, with Europe
deep in recession and China’s
growth softening, so it is
likely that US central bank
will allow a little more steam
to build before it turns off
the stimulus tap, suggesting
that the current growth
trajectory will be maintained.
it is likely that US central bank will allow a little more steam
to build before it turns off the stimulus tap, suggesting that
the current growth trajectory will be maintained.

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