Apr 10
12
Southridge Capital on Employment Numbers and Strikes
Southridge Capital was pleased to see that employment numbers were increased by 162,000 jobs in March. This is the largest increase since 2007. Trading Economics published a report that was released on its website and on BloombergTM indicating that the jobs increase number included 48 temporary workers that were hired by the Federal Government to help conduct the 2010 census. Trading Economics also opined that the increase likely reflected the effects that inclement weather in the Northeast had on February’s results – hiring that would have otherwise occurred in February occurred in March instead. Regardless of the reasons, Southridge Capital believes that any increase in employment is positive and will help the US economy. We said in an earlier blog that we feel temporary employment numbers are somewhat over-looked, but are as important as full time numbers as they assist with momentum and providing those who are unemployed with hope.
Southridge Capital also looked at employment strikes in the US from 2007 to 2010. Recently, the New York City doormen and apartment building workers have voted to strike, this is the first since 1991. Does this reflect positively on the economy? What went into their decision? In 2007, the market was moving right along, and according to Bureau of Labor Statistics, in 2007, there were 25 corporations that saw their workers walk the picket lines. In 2008 when things started to slow down, strikes decreased to 15 and in the 4th quarter of 2008, when things were the worst, only 1 company had a strike. Surprisingly enough, there were 5 strikes in 2009, with the first one coming in June. So what does all of this mean? We hope that more strikes means a stronger economy.