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The Origin of Labor Day

September 1, 2016 — 1 Comment

 

We live in the greatest country ever… Fact! As much as we hear political rhetoric and fighting amongst ourselves, fact remains that we are the greatest country ever. Our country was founded on the idea of self-reliance and individuals that work. They work to create for themselves, their families, community and country. So did you know that the day that we set aside to recognize the economic and social impact of those who work in our country was originally a Canadian idea?

 

Many argue that Labor Day was first proposed by Peter J. McGuire of the American Federation of Labor in May of 1882, after witnessing the annual Labor Festival in Toronto, Canada.  In 1894, President Grover Cleveland signed into law this day as a National Holiday. Since that date we have set aside this 1st Monday in September to recognize the economic and social contributions of workers in our country.

As we celebrate the day with picnics, barbecues, and parades with friends and neighbors; let us not forget the reason that we celebrate. We celebrate the ingenuity, diligence and the hard work that continues to make our country the best in the world.

So, how will you celebrate Labor Day and why…..? Share with me on Facebook, twitter or LinkedIn

                                                             

Read more detail regarding Labor Day and its history

Labor Day 2016 is on September 5, 2016

Weekly Update May 7, 2012

Last week was a rough one for U.S. stocks. The markets started off the week positive, pushed upward by positive corporate earnings, but retreated the last three days to close at a low point, hammered by a disappointing jobs report and renewed fears about a stuttering economic recovery. The S&P lost 2.44% – its worst weekly performance this year, while the Dow lost 1.44% and the Nasdaq fell 3.68%.[i]

The week’s sell off began on Wednesday when the latest ADP Employment Report – usually released before the official Labor Department report – suggested that employment had improved by less than expected. The news was confirmed on Friday when the official numbers showed that employers had added
just 115,000 jobs in April, falling well short of the expected 170,000 new jobs. Although the unemployment rate dropped to 8.1%, we can’t get excited about it because the fall is primarily due to job-seekers giving up their job search.  If we see continued slowness in the job market, it is possible that the Federal Reserve will step up efforts to boost the economy again. Since inflation is still well below the danger zone, the Fed still has room to take action.

 

Solid corporate earnings have provided a breath of fresh air, showing that business is still humming along. First-quarter earnings among companies in the S&P 500 are currently at 7.8%, well ahead of expectations. However, companies are forecasting a much slower second quarter, a sign that executives are bracing for declining sales.[ii] Analysts believe that a warm March and an early Easter may have shifted sales to March, cutting into second quarter revenues. Please also keep in mind that companies often sandbag their forecasts in order to artificially beat expectations when the official earnings are posted.

Last week’s poor market performance and disappointing jobs report reminds us that our economy and investors nerves are still “recovering.” Just as an injured person who undergoes a major surgery will have good days and bad days while recovering, so our healing economy will experience ups and downs.


The Cycle of Growth

November 8, 2011 — Leave a comment

If there is one factor with the greatest potential to mend our economy, it is a steadily improving employment picture. How so? When you look at the U.S. economy as a whole, it is primarily supported by consumer spending.[i] In order for consumers to spend, they must have a measure of disposable income. In order to have disposable income, Americans must have jobs.

                                                                

To look at it another way: As the employment situation improves, consumer spending typically increases, thus creating additional demand for goods and services. As demand for goods and services grows, more production is needed, thus creating more jobs, and so on. At risk of oversimplifying, this combination of factors explains the cycle of a healthy economy.

 

So are we seeing improvement in the nation’s jobs picture? Yes. One year ago, the unemployment rate was 9.7%. As of October’s report, it dropped to 9%. On average 152,000 jobs have been added each month during the same time period, for a total of 1.8 million jobs. In addition, the workweek has lengthened and wages are up 1.8%.[ii] All of this shows that the employment picture is gradually improving. Interestingly, October also showed improvement in chain store sales. Overall, the 23 major U.S.-based retailers that report monthly results posted a composite 3.4% gain, according to Thomson Reuters data.[iii]

 

Does this mean we are completely out of the woods? Not necessarily. For the most part, American wallets aren’t fat enough to push the economic expansion into hyperdrive. Even the 1.8% wage growth mentioned above isn’t enough to keep pace with current inflation rates. We still have a long way to go to reach our full potential, but things are moving in the right direction.

 

ECONOMIC CALENDAR:
Monday –
Consumer Credit
Tuesday – Redbook
Wednesday – Wholesale Trade, Ben Bernanke Speaks at 9:30AM Eastern
Thursday – International Trade, Jobless Claims, Import and Export Prices, Treasury Budget
Friday – Consumer Sentiment