Gloomy US job market
Monday, 18 August 2008
Fazle Rashid from New York
The Consumer Price Index in the US in July this year is 5.6 per cent higher than the corresponding period of 2007. The workers in the manufacturing sector earned 3.1 per cent less than they did a year ago after adjusting for the rising cost of living.
July was the tenth consecutive month in which weekly average salary failed to keep pace with inflation, the New York Times quoted a labour department official saying. The soaring price has been driven by spike in the price of oil. Food, beverage (milk included) and transportation costs are significantly higher now than they were a year ago.
With job market remaining gloomy it is needless to point out that the common people are reeling under the pressure of mounting inflation. There has been a marginal increase in wages but this has been eaten up by soaring oil and food prices. The inflation has been the fastest since the 1990s recession. The inflation is most visible in two areas, gasoline and food. Americans are finding it more and more difficult to meet ends. Banks have become more cautious in approving loans and mortgages. Analysts are predicting that as Americans are cutting down spending, the manufacturers will be forced to lower the price of their produce.
Inflation has also hit hard the manufacturing units as well as they are paying more for fuel and transportation. The basic economic theory of shifting the burden will now be in play.
The researchers are saying the inflation will take long period to ease.
The Consumer Price Index in the US in July this year is 5.6 per cent higher than the corresponding period of 2007. The workers in the manufacturing sector earned 3.1 per cent less than they did a year ago after adjusting for the rising cost of living.
July was the tenth consecutive month in which weekly average salary failed to keep pace with inflation, the New York Times quoted a labour department official saying. The soaring price has been driven by spike in the price of oil. Food, beverage (milk included) and transportation costs are significantly higher now than they were a year ago.
With job market remaining gloomy it is needless to point out that the common people are reeling under the pressure of mounting inflation. There has been a marginal increase in wages but this has been eaten up by soaring oil and food prices. The inflation has been the fastest since the 1990s recession. The inflation is most visible in two areas, gasoline and food. Americans are finding it more and more difficult to meet ends. Banks have become more cautious in approving loans and mortgages. Analysts are predicting that as Americans are cutting down spending, the manufacturers will be forced to lower the price of their produce.
Inflation has also hit hard the manufacturing units as well as they are paying more for fuel and transportation. The basic economic theory of shifting the burden will now be in play.
The researchers are saying the inflation will take long period to ease.