David Kirkpatrick

August 2, 2010

The Great Recession, animated

A chilling look at unemployment from January 2007 to May 2010.

September 4, 2009

Jobless recovery = Main Street killer

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 1:43 pm

When the economy gets back on track through a “jobless recovery,” the overall result is most people don’t see, feel or believe any evidence things are better in some esoteric “big picture” fashion.

An enduring recovery that remains jobless could be a real political boon to the GOP for the 2010 election cycle if the party could get away from the lampoonable stunt-pulling and histrionics that so far characterize the opposition party.

From the link:

As a technical matter, most economists believe that the United States has escaped the grip of recession, the longest since the Great Depression. The Labor Department’s latest employment report, released Friday, added weight to the view that economic expansion has resumed, marking a continued albeit modest improvement to the rate of lost jobs.

Yet the report also lent credence to a growing consensus that the recovery is likely to be weak and fragile, prompting most companies to hold back from hiring aggressively.

“In the context of a full-blooded recovery, this report is disappointing,” said Alan Ruskin, an economist with the Royal Bank of Scotland in Stamford, Conn. “We’re still clawing our way back.”

Many experts now see a high probability of another so-called jobless recovery, in which the economy expands but jobs continue to disappear — a replay of what happened after the last recession in 2001.

September 2, 2009

U.S. productivity up to 2003 level

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 3:32 pm

Food for economic thought:

U.S. non-farm productivity was stronger than initially thought in the second quarter as companies slashed costs to protect profits, data showed on Wednesday.

The Labor Department said non-farm productivity rose at a 6.6% annual rate, rather than the 6.4% pace it reported last month. That was the biggest increase since the third quarter of 2003.

Productivity rose at a 0.3% pace in the first quarter.

Analysts polled by Reuters had forecast productivity, which measures the hourly output per worker, rising at a 6.4% rate in the second quarter.

Despite the increased productivity, output fell at a 1.5% rate in the second quarter, the department said, unchanged from its previous estimate, as over 6 million jobs have been cut since the recession began in December 2007. Output, measured on a year-on-year basis, was 5.5% lower.

January 19, 2009

IRA and 401(k) advice from the Department of Labor

Filed under: Business, Politics — Tags: , , , — David Kirkpatrick @ 4:21 pm

Here’s a press release that will come in handy for anyone making moves with retirement funds.

The release:

U.S. Labor Department finalizes rule on investment advice for 401(k) plans and IRAs
PR Newswire via NewsEdge :

WASHINGTON, Jan. 16 /PRNewswire-USNewswire/ — The U.S. Department of Labor today announced publication of a final rule to make investment advice more accessible for millions of Americans in 401(k) type plans and individual retirement accounts (IRAs). The final rule will be published in the Jan. 21, 2009, edition of the Federal Register. The rule includes a regulation that implements the new statutory exemption for investment advice added to the Employee Retirement Income Security Act (ERISA) by the Pension Protection Act (PPA) and a related class exemption.

“Access to professional investment advice is particularly important now for workers as they manage their 401(k) plans and IRAs in changing and volatile financial markets,” said Secretary of Labor Elaine L. Chao.

The final rule provides general guidance on the exemption’s requirements, including computer model certification and disclosures by fiduciaries. The regulation also includes a model form to assist advisers in satisfying the exemption’s fee disclosure requirement. In addition, the final rule includes a class exemption expanding the availability of investment advice.

The PPA amended ERISA by adding a new prohibited transaction exemption that allows greater flexibility for participants of 401(k) plans and IRAs to obtain investment advice. One of the ways in which investment advice may be given under the exemption is through the use of a computer model certified as unbiased. The other way is through an adviser compensated on a “level-fee” basis. Several other requirements also must be satisfied, including disclosure of fees the adviser is to receive.

“Millions of American workers are responsible for managing their 401(k) and IRA accounts. The department took extraordinary steps to engage a broad spectrum of participants, employers, plan fiduciaries and others throughout the rulemaking process,” said Bradford P. Campbell, assistant secretary of the Labor Department’s Employee Benefits Security Administration. “The final rule expands access to investment advice without compromising the critical protections for plan participants and beneficiaries.”

The department published a Request for Information in December 2006, published a proposed regulation in August 2008 and held a public hearing on the proposals on Oct. 21, 2008.

U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.

SOURCE U.S. Department of Labor