Wednesday, November 30, 2011

Economic new: More jobs & the Fed to the rescue

Two particularly important pieces of economic news came out today that are worth noting, as they could have an effect on Lehigh Valley businesses.

First, on the jobs front: good and bad news.

  • Good news: Private sector jobs shot up in November, with the private sector creating 206,000 jobs.  Analysts had expected the creation of only 125,000.
  • More good news: Approximately 42,000 job layoffs were announced in November - the good news here is that the number shrunk by .7% from October.
  • Now the bad news: overall job layoffs are up this year - over 560,000, compared with 2010's 530,000 - and there is still a month to go.
Now for the global news: the Federal Reserve, along with the central banks of the Eurozone, England, Japan, Switzerland and Canada, have announced coordinated action that will make it easier for countries around the world to trade the US Dollar for foreign currency.  This is being characterized as a "contingency measure" so that central banks can use other forms of currency in the event of a crisis.  The likely trigger of such a contingency is the European Debt Crisis, which may cause foreign banks to need to use other currency in order to be able to conduct normal business.  

The fact that such a measure is even necessary should speak volumes about the severity of the crisis in Europe.