WREN Report: Employment and Confidence Continue Decline

December 7, 2008  by in UnCategorized   

By Home Furnishings Business in on December 2008 * The overall November unemployment rate declined again, to 6.7 percent, from 6.5 percent in October, according to the U.S. Bureau of Labor Statistics (BLS). Non-farm employment fell sharply, by 553,000 in November, the most in 34 years.

On a seasonally adjusted basis, preliminary figures for November show overall manufacturing employment decreased by 85,000, or 0.6 percent, with manufacturing employment in the home furnishings sector down 6,600, or 1.4 percent measured against October figures. Compared with November of 2007, total manufacturing employment declined by 319,000 jobs or 2.4 percent, and home furnishings manufacturing lost 30,200 jobs or 6.1 percent.

On the retail side of the home furnishings industry, employment slipped 1.8 percent, or 9,800 jobs, in November versus October, to 547,000 jobs. That’s a decline of 6.5 percent from November of last year, based on BLS records. November’s overall retail trade employment declined 0.6 percent versus October and fell 3 percent compared with November 2007 figures.

* The Reuters/University of Michigan Surveys of Consumers, an important measure of consumer confidence, fell again in November, to 55.3 from 57.6 in October, and was off substantially from the 76.1 recorded last November.

Richard Curtin, survey director, attributed the decline to mounting job losses, falling incomes and the evaporation of household wealth. There have been only two surveys during the past half century that found consumers more pessimistic than now, in April and May of 1980.

The Index of Consumer Expectations, a closely watched component of the Index of Leading Economic Indicators that is noted for its ability to foreshadow recessions, was 53.9 in November, down from 57 in October, but above the 49.2 recorded in June, the low in the last 13 months.

Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by HFB Research Editor Janice Chamberlain.