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As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline. Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy. As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers - some 80 percent of the labor force - have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours. In September, the average workweek edged down by one-tenth of an hour, to 33 hours. For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million. "We have a truly massive crisis of long-term unemployment," said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. "Today's employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly." The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand. But temporary help services lost 1,700 jobs in September. "Companies are extremely cautious," said Roy G. Krause, chief executive of Spherion, a recruiting and staffing comp

As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline. Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy. As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers - some 80 percent of the labor force - have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours. In September, the average workweek edged down by one-tenth of an hour, to 33 hours. For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million. "We have a truly massive crisis of long-term unemployment," said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. "Today's employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly." The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand. But temporary help services lost 1,700 jobs in September. "Companies are extremely cautious," said Roy G. Krause, chief executive of Spherion, a recruiting and staffing comp

At more than 17 percent unemployed, the Victor Valley continued to top California's unemployment rate of 12.5 percent. Though the state added more than 32,000 non-farm payroll jobs in January, it still has the nation's fifth-highest unemployment rate, exceeding the national average of 10.6 percent, according to the state's Employment Development Department. Michigan leads the nation with an unemployment rate of 14.3 percent, according to U.S. Bureau of Labor Statistics. Adelanto continued to have the highest unemployment rate in the Victor Valley at 22.8 percent. But every city noted in the state's report suffered from double-digit unemployment percentages - most over 15 percent. Most of the 19,500 jobs lost in Riverside and San Bernardino counties from December 2009 to January 2010 were in the trade, transportation and utilities sector, which declined by 7,700 workers. Retail stores shed over 6,000 jobs as the Christmas shopping season closed, while professional and business services jobs saw a decline of 3,600 workers.

IN MICHIGAN -If your earnings from work are equal to or less than your weekly umemployment entitlement, your benefits are reduced by 50 cents on every dollar earned -If your earnings surpass your weekly unemployment benefit but are less than 1.5x times your benefit amount, then your total earnings are subtracted from 1.5x times your weekly benefit amount -Your weekly benefit combined with your weekly earnings cannot exceed 1.5x your unemployment benefit amount. This would suggest that in Michigan you could possibly work part-time starting your own business while claiming unemployment insurance as long as you don't make wages from your business in excess of the above and are willing and able to take the new job that you are actively looking for.

The jobless rate in Riverside County was 15.1 percent in January, up from 14.3 percent the previous month, new figures show. About 137,600 people are unemployed in Riverside County, according to the California Employment Development Department. Riverside County's jobless figure was in line with the 15 percent unemployment rate that the Riverside-San Bernardino-Ontario metropolitan statistical area reported, state officials said. San Bernardino County's unemployment rate was 14.8 percent in January, up from 13.6 percent in December, the monthly labor report showed. In the Coachella Valley, unemployment rates for cities ranged from a low of 5.4 percent in Indian Wells to 29 percent in Mecca. In January, California's unemployment rate was 13.2 percent, compared with 10.6 percent for the nation, EDD reported. Read more tomorrow in The Desert Sun.

Los Angeles County reported 11.4%, Riverside 13.2%, San Bernardino 12.5% and Ventura 9.6%. Even Orange County, which historically has low unemployment, reached 8.5% in March.

http://www.nytimes.com/imagepages/2010/03/05/business/20100306_CHARTS_GRAPHIC.html?ref=economy March 5, 2010 After Jerky Swings, the Economy Begins to Look Nice and Boring By FLOYD NORRIS A DEEP recession and the credit crisis led to extraordinary falls in the American economy and perhaps even greater disruptions in financial markets. Now, both economic and market indicators have returned to what Warren G. Harding called "normalcy" when he was elected president in 1920, after the end of World War I and a subsequent recession. A lot of worry about the economy remains, and some economists are forecasting a double-dip recession, as occurred in the early 1980s, or a very slow recovery, as happened after the 1990-91 and 2001 recessions. But as the accompanying charts show, three disparate indicators - covering unemployment, corporate financial distress and stock market volatility - have gone from very high to a little below historical averages. Abby Joseph Cohen, the Goldman Sachs strategist, told a conference sponsored by George Washington University this week that lessened market volatility was one of the reassuring signs she saw. She was referring to the VIX index, which uses index options prices to show how much volatility traders expect. Another way to measure volatility is to look at the range of share prices. The chart here shows the differences between the highs and lows of the Standard & Poor's 500-stock index during three-month periods. There have been some sharp movements on a few days, but the high from December through February was just 10 percent higher than the low, the smallest range since the summer of 2007. Similarly, Challenger, Gray & Christmas, an outplacement firm, said that only 42,900 firings were announced in February, the lowest for any month since 2006. The chart shows three-month totals, which are down almost three-quarters from the highest levels last year. The data "offers more support to the notion that U.S. employers ha

"It's like the front line of a new virus outbreak." The trends have unnerved even well-established businesses. "There is such a huge lack of confidence in the politicians, in the European Union and in the banks," said Arturo Virosque, 79, president of Valencia's chamber of commerce and the owner of a local logistics company. Ticking off crises going back to the Spanish Civil War in his youth, he said, "this is different. It's like an illness." After price cuts by competitors, Mr. Virosque's company reduced charges for storage and transportation, and slashed its work force to about 170, from 250. "The worst thing is that we have to cut the young people," he said, because higher severance makes it too expensive to fire older workers. While unemployment traditionally is higher in Spain than in much of Europe, the sharp increase has many here nervous. The jobless rate for those under 25 is at a Depression-like level of 31.8 percent, the highest among the 27 nations of the European Union.

Companies have used government-subsidized short working hours - known as kurzarbeit - to avoid mass layoffs, but that still costs them money and is only a temporary solution. In February exports fell 23 percent compared with the previous year. Industrial output shrank 20.6 percent for the month, compared with the year before. "We would need to see signs of improvement in summer or early autumn. Otherwise it becomes too expensive for companies to continue kurzarbeit," said Gernot Nerb