Employment picture not good, but it's been worse

http://forbes.com/device/article.php?CALL_URL=http://www.forbes.com/2010/03/05/jobs-employment-report-markets-economy-skeptic.html  

3 key economic terms:

1. Hemorrhage- to lose (assets): a company that was hemorrhaging money.
2. Stock-the outstanding capital of a company or corporation; the shares of a particular company or corporation.
3. Investment- the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.
www.dictionary.com

Description: The economic activity being described points to the ample amounts of job losses during the depth of the recession in late 2008 and the beginning of 2009. However, statistics show that the economic recession is dwindling, slowly coming to a healthy recovery. The unemployment rate was 9.7% for a good amount of time, occasionally increasing. Now, the unemployment rate has dropped in 2010 and just about one million jobs have been created and 100,000 jobs that were lost in 2009. Economists make it a point to state that the economy cannot come out of recession if people do not spend money and buy things. This is not possible if people continueto loose their jobs or suffer severe pay cuts. Therefore, more jobs are being created. Additionally, 36,000 jobs were lost in February, and this sent the stock market soaring.

Analysis: This economic activity is occuring because of the economic resssion we are slowly beginnig to come out and recover from. People are loading their jobs primarily because businesses and companies are not accumulating enough income to generate pay to their employees for their work. Therefore, they are being coerced to lay off and unemploy thousands of people due to the dearth of money being generated within the business or company. Another reason this is occuring is due to the temporary hiring of employers. Full time positions are said to be imminent in this day and age. So, people have to settle for less, which they perceive as better than nothing. Another possible cause to the high number of job losses was the bad, snowy weather forcasted leaving many construction workers, transportation workers and media/IT workers out of work.

Explanation: In essense, the primary reasons for the occurance of this economic activity is due to the low amount of revenue and income being generated into businesses and companies, weather restrictions (snow), the depth of the recession, and temporary hiring of employers for short-terms needed jobs. There is a low amount of revenue and income being generated into businesses because people have no excess money to spend due to their pay cuts or job lay off/unemployment status. Therefore, the demand of many goods and services is minimal to none. In addition, the snow certain areas of the world experienced in 2008, winter/ snowy season left many outside job workers unemployed because they were not able to efficaciously carry out the duties of their work. The phenomenon of temporary hiring began to be widely exercised because employers could either not afford to pay their workers for long term service or because their merchandise was not being in high enough demand for long term employment.

Prediction: I do think the United States economy will come out of the state of recession. I also think the unemployment rate percentage will continue to dwindle. I hold these views because of the progress the economy has already proven to have made since 2008. The unemployment rate would have remained constant or increased since then with no hope for recovery. Also, construstion, transportation, and media/IT workers would still be out of luck on employment, however, they currently are getting more and more jobs contributing to the million jobs that have been created. There are many indications of a healthy recovery and I strongly believe we will see even more progress within the next year or two.