David Andrea, Vice President of Industry Analysis and Economics at the Motor and Equipment Manufacturers Association, says in a Senate Banking, Housing and Urban Affairs Committee hearing Friday that many manufacturing companies are making major cutbacks in employee compensation and benefits. (0:30)
Senator Sherrod Brown (D-Ohio) says in a Senate Banking, Housing and Urban Affairs Committee hearing Friday that compromised access to credit is a huge threat and could cause manufacturers to go out of business (0:31)
By Leah Valencia, University of New Mexico/Talk Radio News Service
Several industry experts called on Congress to help restore credit to manufacturers in a Senate Banking, Housing and Urban Affairs Committee hearing Friday.
A few who testified said that current credit limits typically do not cover the amount that suppliers need to invest in employees, equipment and raw materials.
“In our industry, manufacturers are expected to deliver products just in time. Any delays can cause significant disruption in our nation’s critical supply chain…thus stifling economic growth and risking national security,” said Robert Kiener, Director of Member Outreach at the Precision Machined Products Association. “If our customers can not acquire the products they need, due to the credit crisis, they will source from overseas and these lost jobs will never come back to the United States.”
The testimonies focused on the need for long-term programs that support manufacturing, technology and innovation initiatives in the U.S. The experts outlined the increased problems manufacturers have had in gaining access to greater capital during the current economic recession.
“The bank[s] need assurances that the federal regulators will not come down on them for making sound lending decisions, a return to the sound lending decisions will allow for available and affordable credit for manufacturers,” Kiener said. “I think it is crucial to the recovery of the economy to allow renewed capital expenditures… and in the end, increase hiring and employment to get things back and rolling.”
A Senate subcommittee will submit questions to the U.S. Department of Treasury and U.S. Department of Commerce in a continued effort to evaluate and resolve this issue.
By Michael Ruhl, University of New Mexico – Talk Radio News Service
Correspondent Michael Ruhl reports on the recent release of the unemployment statistics for March.
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Long Segment [01:00m]: Play Now | Play in Popup | Download Short Segment [00:32m]: Play Now | Play in Popup | DownloadBy Michael Ruhl, University of New Mexico – Talk Radio News Service
Bureau of Labor Statistics Commissioner Keith Hall testifies before Congress on the nation’s unemployment numbers from March 2009, and how the recession has affected employment.
Hall said that unemployment numbers have climbed from 8.1 percent to 8.5 percent, and that the industries hardest hit are manufacturing, construction, and temporary services.
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By Michael Ruhl, University of New Mexico – Talk Radio News Service
A day after President Barack Obama’s budget was passed by a Congress boiling with partisanship, the Bureau of Labor Statistics released a report showing unemployment at its highest since 1983. There are now 13.2 million Americans out of work.
The pouring rain in Washington mirrored the sobered mood in the room, as the Joint Economic Committee heard the testimony of Keith Hall, the Commissioner of the Bureau of Labor Statistics.
March was one of the worst Months on record for unemployment, and when asked outright, Hall told the committee that there were no “bright spots” in the report.
National unemployment climbed to 8.5 percent in March, rising from the level of 8.1 percent in February and 7.6 percent in January.
Hall said that two-thirds of the job loss has happened in the past 5 months. Every state is in recession for the first time in 30 years, according to Carolyn Maloney (D-NY).
Official unemployment numbers do not encompass underemployed Americans or those who have officially left the workforce. It is reported that 16 percent of the country is out of work or underemployed. One in four of those unemployed have been out of work for more than six months, and of those, half have been looking for work for over a year, Hall said.
Maloney highlighted that last month, 8,000 jobs were lost in the news publishing industry. Those losses total 70,000 job cuts since Dec. 2007, Hall said, adding that most job losses have been see in the manufacturing, construction, and temporary services industries. The only area to see any growth in March was the Healthcare industry, Hall said.
Ranking Committee member Senator Sam Brownback (R-KA) noted that the impact of the ongoing recession was not severe for almost a year after it began in December 2007. Brownback attributed recent dramatic jumps in job losses over the past five months to the lockup in the credit markets and the government bailouts that followed.
The Federal Reserve believes that unemployment will peak at 8.8 percent this year, but Ranking House Committee Member Kevin Brady (R-TX) said that the unemployment rate is already higher than what the administration anticipated for 2009. Brady said that the Obama Administration’s “optimistic assumptions” would not get the country out of its current mess.
President Obama’s Economic Stimulus package was passed by Congress earlier this year, and saw an unprecedented amount of money placed into public works meant to put people back to work. Obama has pledged the legislation will save or create three to four million jobs over the next two years.
Read the report here: Bureau of Labor Statistics Report
