How Bad is the Job Market?

Chicago based Challenger, a leading indicator for new jobs, reported 51,114 announced layoffs for August. ADP, called a 91,000 gain in private payrolls for August. At the same time, new weekly claims for unemployment benefits decreased somewhat to 409,000, a rate that shows no sign of improvement in the unemployment picture.

The conflicting job reports will make Friday's non-farm payroll report ever more important, with the entire industry hoping to see a better and positive economic direction. The cornerstone holding everything up, are jobs and this is why the President will focus his speech on creating jobs, however, to do so, he needs money, more stimulus money.

President Obama's upcoming speech, may very well define his presidency, as it is a foregone conclusion, should the economy not improve and with it the job market, Mr. Obama second term is history. To keep his job, the President will have to do some sort of tap-dancing, since the Republican controlled House of Representatives and Budget Chairman Paul Ryan will not allow further increases in the national debt unless coupled to spending cuts, a sort of tit for tat.

Representative Paul Ryan, expressed explicitly his view in a letter to this writer, stating:
[ I understand and share the frustration over the growing national debt and slow job growth that has resulted from huge spending increases.] [The President's budget accelerates this growth at a rate that triples our $14 trillion debt in ten years, permanently enlarges the size of government, imposes $1.5 trillion in new taxes, and offers no reforms to save government health and retirement programs. By failing to seriously confront the most predictable economic crisis in our history, the President's policies would instead commit our children to a diminished future.] and [ I believe that the necessary economic growth cannot come from Washington-rather, it originates from the creativity and entrepreneurial spirit of the American people. To this end, I will continue to pursue pro-growth policies and support legislation that spurs job creation, stops spending money the government doesn't have, and lifts the crushing burden of debt.]

President Obama's speech may also wind up as a psychological game of chicken, with the President announcing his plans (costing billions of dollars & increases in the national debt ) and the House requiring equal billions in spending cuts. When that scenario takes place, it allows President Obama to shift the burden of "blame" onto the Republican controlled House.