New U.S. study finds many also skip food and needed drugs in an effort to cut costs
Posted August 19, 2009
WEDNESDAY, Aug. 19 (HealthDay News) -- The epidemic of home foreclosures is having a serious impact on Americans' health, suggests a study that looked at 250 Philadelphia homeowners facing foreclosure.
More than half of them reported being depressed, and 37 percent of them had major depression. In addition, almost 60 percent reported skipping meals because they couldn't afford food and 48 percent said they couldn't afford prescription drugs.
The study also found that for 9 percent of participants, a medical condition in their family was the primary reason for the home foreclosure, and more than 25 percent said they had significant unpaid medical bills.
"The foreclosure crisis is also a health crisis. We need to do more to ensure that if people lose their homes, they don't also lose their health," the study's lead author, Dr. Craig E. Pollack, who conducted the research while at the University of Pennsylvania School of Medicine, said in a news release.
The financial strain of foreclosure may cause people to reduce what they consider discretionary health care spending, for such things as preventive care visits, healthy foods and drugs for chronic conditions. This can have a serious effect on long-term health, Pollack said.
He and his colleagues also found that the stress of foreclosure may lead to an increase in unhealthy behaviors. For example, 65 percent of smokers in the study said they smoked more since receiving notice of foreclosure.
The findings from Philadelphia may represent only the tip of the iceberg when compared to some other cities, Pollack said. While foreclosure filings in Philadelphia almost doubled between 2007 and 2008, other large cities have higher unemployment and foreclosure rates.
In order to reduce foreclosure-related health effects, mortgage counseling agencies and health care workers need to coordinate their efforts to help people at risk of foreclosure access both housing and medical help, the researchers said.
The study appears online this week in the American Journal of Public Health.
http://health.usnews.com/articles/health/healthday/2009/08/19/foreclosures-plunge-people-into-depression.html
Friday, August 21, 2009
Thursday, August 20, 2009
New jobless claims rise unexpectedly to 576K
New jobless claims rise unexpectedly to 576,000; total benefit rolls show little change
By Christopher S. Rugaber, AP Economics Writer
On Thursday August 20, 2009, 11:08 am EDT
WASHINGTON (AP) -- The number of first-time claims for unemployment benefits rose unexpectedly for the second straight week, a sign that jobs remain scarce even as other data show the economy is stabilizing.
Many economists expect the economy to grow at a modest pace in the second half of this year, bringing an end to the longest recession since World War II. But jobs are likely to remain scarce and many analysts worry that persistently high unemployment could cause consumers to hold back on spending, threatening a recovery.
The Labor Department said Thursday the number of new jobless claims rose to a seasonally adjusted 576,000 last week, from a revised figure of 561,000. Wall Street economists expected a drop to 550,000, according to a survey by Thomson Reuters.
Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies' willingness to hire new workers.
"Consumer spending is going to have a very difficult time recovering with the labor market as weak as it is," said Joshua Shapiro, chief U.S. economist at MFR Inc.
The Conference Board's index of leading economic indicators rose for a fourth straight month in July, gaining 0.6 percent. That was slightly less than economists expected and a slower rate than in the prior three months.
Still, the Conference Board said its index, which is meant to project economic activity in the next three to six months, suggests the recession has bottomed out and growth in economic activity will begin soon. Six of the 10 indicators that comprise the index increased in July, including employment data and stock prices. Consumer expectations were the biggest negative factor.
Meanwhile, the Mortgage Bankers Association said more than 13 percent of American homeowners with a mortgage are either behind on their payments or in foreclosure, a record tally as the recession leaves more people unemployed. About a third of new foreclosures between April and June were prime, fixed-rate loans, up from one in five a year earlier.
The jobless claims figures are volatile, and had been trending down, after remaining above 600,000 for most of this year. The new report indicates that the labor market is still weak. In a healthy economy, initial claims are usually around 325,000 or below.
The four-week average of initial claims, which smooths out fluctuations, rose for the second straight week to 570,000.
The number of people remaining on the benefit rolls dropped by 2,000 to 6.24 million. Analysts had expected a slight decline. The continuing claims figures lag initial claims by a week.
The stock market rose slightly in morning trading. The Dow Jones industrial average added about 35 points, while broader indices also edged up.
When federal emergency programs are included, the total number of jobless benefit recipients was 9.18 million in the week that ended Aug. 1, the most recent data available. That was down from 9.25 million in the previous week. Congress has added up to 53 extra weeks of benefits on top of the 26 typically provided by the states.
The large number of people remaining on the rolls is an indication that unemployed workers are having a hard time finding new jobs.
Still, layoffs have slowed recently. The department said earlier this month that companies cut 247,000 jobs in July, a large amount but still the smallest number in almost a year.
The unemployment rate dipped to 9.4 percent in July from 9.5 percent, its first drop in 15 months. But many private economists and the Federal Reserve think the rates could top 10 percent by next year.
The recession, which began in December 2007 and is the longest since World War II, has eliminated a net total of 6.7 million jobs.
More job cuts were announced this week. Bethesda, Md.-based defense contractor Lockheed Martin Corp. said it will eliminate about 800 jobs in its space systems division, and San Francisco-based video and audio conferencing company Polycom Inc. said it will cut 3 percent of its 2,600 person work force.
Among the states, Tennessee had the largest increase in claims with 2,525 for the week ended Aug. 8, which it attributed to more layoffs in the transportation equipment, industrial machinery, and rubber and plastics industries. The next largest increases were in North Carolina, Wisconsin, Georgia and Washington.
California reported the largest drop in claims of 5,635, which it attributed to fewer layoffs in the construction, trade and service industries. Michigan, Ohio, Kentucky and Delaware had the next largest decreases.
AP Business Writers Alan Zibel in Washington and Tali Arbel in New York contributed to this report.
By Christopher S. Rugaber, AP Economics Writer
On Thursday August 20, 2009, 11:08 am EDT
WASHINGTON (AP) -- The number of first-time claims for unemployment benefits rose unexpectedly for the second straight week, a sign that jobs remain scarce even as other data show the economy is stabilizing.
Many economists expect the economy to grow at a modest pace in the second half of this year, bringing an end to the longest recession since World War II. But jobs are likely to remain scarce and many analysts worry that persistently high unemployment could cause consumers to hold back on spending, threatening a recovery.
The Labor Department said Thursday the number of new jobless claims rose to a seasonally adjusted 576,000 last week, from a revised figure of 561,000. Wall Street economists expected a drop to 550,000, according to a survey by Thomson Reuters.
Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies' willingness to hire new workers.
"Consumer spending is going to have a very difficult time recovering with the labor market as weak as it is," said Joshua Shapiro, chief U.S. economist at MFR Inc.
The Conference Board's index of leading economic indicators rose for a fourth straight month in July, gaining 0.6 percent. That was slightly less than economists expected and a slower rate than in the prior three months.
Still, the Conference Board said its index, which is meant to project economic activity in the next three to six months, suggests the recession has bottomed out and growth in economic activity will begin soon. Six of the 10 indicators that comprise the index increased in July, including employment data and stock prices. Consumer expectations were the biggest negative factor.
Meanwhile, the Mortgage Bankers Association said more than 13 percent of American homeowners with a mortgage are either behind on their payments or in foreclosure, a record tally as the recession leaves more people unemployed. About a third of new foreclosures between April and June were prime, fixed-rate loans, up from one in five a year earlier.
The jobless claims figures are volatile, and had been trending down, after remaining above 600,000 for most of this year. The new report indicates that the labor market is still weak. In a healthy economy, initial claims are usually around 325,000 or below.
The four-week average of initial claims, which smooths out fluctuations, rose for the second straight week to 570,000.
The number of people remaining on the benefit rolls dropped by 2,000 to 6.24 million. Analysts had expected a slight decline. The continuing claims figures lag initial claims by a week.
The stock market rose slightly in morning trading. The Dow Jones industrial average added about 35 points, while broader indices also edged up.
When federal emergency programs are included, the total number of jobless benefit recipients was 9.18 million in the week that ended Aug. 1, the most recent data available. That was down from 9.25 million in the previous week. Congress has added up to 53 extra weeks of benefits on top of the 26 typically provided by the states.
The large number of people remaining on the rolls is an indication that unemployed workers are having a hard time finding new jobs.
Still, layoffs have slowed recently. The department said earlier this month that companies cut 247,000 jobs in July, a large amount but still the smallest number in almost a year.
The unemployment rate dipped to 9.4 percent in July from 9.5 percent, its first drop in 15 months. But many private economists and the Federal Reserve think the rates could top 10 percent by next year.
The recession, which began in December 2007 and is the longest since World War II, has eliminated a net total of 6.7 million jobs.
More job cuts were announced this week. Bethesda, Md.-based defense contractor Lockheed Martin Corp. said it will eliminate about 800 jobs in its space systems division, and San Francisco-based video and audio conferencing company Polycom Inc. said it will cut 3 percent of its 2,600 person work force.
Among the states, Tennessee had the largest increase in claims with 2,525 for the week ended Aug. 8, which it attributed to more layoffs in the transportation equipment, industrial machinery, and rubber and plastics industries. The next largest increases were in North Carolina, Wisconsin, Georgia and Washington.
California reported the largest drop in claims of 5,635, which it attributed to fewer layoffs in the construction, trade and service industries. Michigan, Ohio, Kentucky and Delaware had the next largest decreases.
AP Business Writers Alan Zibel in Washington and Tali Arbel in New York contributed to this report.
U.S. productivity soars as employers slash payrolls
WASHINGTON — Associated Press
Last updated on Friday, Aug. 14, 2009
U.S. productivity surged in the spring by the largest amount in almost six years while labour costs plunged at the fastest pace in nine years. The results point to a recession losing steam, but they do not bode well for the unemployed or those forced to work shorter weeks who were hoping for more hours.
The U.S. Labour Department said yesterday that productivity, the amount of output per hour of work, rose at an annual rate of 6.4 per cent in the April-June quarter, while unit labour costs dropped 5.8 per cent. Both results were greater than economists expected.
Productivity can help boost living standards because it means companies can pay their workers more, with those wage increases financed by rising output. However, in this recession, companies have been using their productivity gains from layoffs and other cost cuts not to hire again but to bolster their profits.
The result: Many companies have been reporting better-than-expected second-quarter earnings despite falling sales.
Businesses producing more with fewer employees means millions of unemployed Americans likely will continue to face a dismal job market. Some analysts also worry that companies' aggressive cost-cutting could make it hard to mount a sustainable recovery. That's because a lack of wage growth and a shortage of jobs will likely depress consumer spending, which accounts for about 70 per cent of U.S. economic output.
Ideally, businesses would use the current productivity gains to stabilize their own financial situations and as the economy rebounds, resume hiring to meet the rising demand, analysts said.
"Hopefully, businesses will stop the layoffs and start hiring again so that consumers will have the ability to spend, but that is a tricky transition," said Mark Zandi, chief economist at Moody's Economy.com.
In a second report, the Commerce Department said wholesale inventories declined for a record 10th consecutive month, falling 1.7 per cent in June. That was nearly double the 0.9 per cent decrease economists had expected.
But in an encouraging sign, sales rose 0.4 per cent for a second straight month. The first back-to-back increases in a year boosted hopes that businesses will begin to ramp up production to meet rising demand.
The second-quarter productivity increase reflected that the number of hours worked fell much faster than output dropped. Total hours worked dropped at an annual rate of 7.6 per cent, while the output of non-farm businesses fell at a 1.7 per cent rate.
The U.S.'s total output of goods and services, as measured by the gross domestic product, fell at an annual rate of 1 per cent in the second quarter. That was a much slower rate of decline than the previous two quarters when the economy shrank at the fastest pace in more than a half-century.
Many economists believe the recession is on the verge of ending. Should the economy start to grow in the second half of this year, some companies might boost employment - if demand for their products showed a sustained increase.
Still, the leaner work force should help keep productivity rising in coming quarters although the gains are not expected to be as large as the jump in the spring.
http://www.theglobeandmail.com/report-on-business/us-productivity-soars-as-employers-slash-payrolls/article1248985/
Last updated on Friday, Aug. 14, 2009
U.S. productivity surged in the spring by the largest amount in almost six years while labour costs plunged at the fastest pace in nine years. The results point to a recession losing steam, but they do not bode well for the unemployed or those forced to work shorter weeks who were hoping for more hours.
The U.S. Labour Department said yesterday that productivity, the amount of output per hour of work, rose at an annual rate of 6.4 per cent in the April-June quarter, while unit labour costs dropped 5.8 per cent. Both results were greater than economists expected.
Productivity can help boost living standards because it means companies can pay their workers more, with those wage increases financed by rising output. However, in this recession, companies have been using their productivity gains from layoffs and other cost cuts not to hire again but to bolster their profits.
The result: Many companies have been reporting better-than-expected second-quarter earnings despite falling sales.
Businesses producing more with fewer employees means millions of unemployed Americans likely will continue to face a dismal job market. Some analysts also worry that companies' aggressive cost-cutting could make it hard to mount a sustainable recovery. That's because a lack of wage growth and a shortage of jobs will likely depress consumer spending, which accounts for about 70 per cent of U.S. economic output.
Ideally, businesses would use the current productivity gains to stabilize their own financial situations and as the economy rebounds, resume hiring to meet the rising demand, analysts said.
"Hopefully, businesses will stop the layoffs and start hiring again so that consumers will have the ability to spend, but that is a tricky transition," said Mark Zandi, chief economist at Moody's Economy.com.
In a second report, the Commerce Department said wholesale inventories declined for a record 10th consecutive month, falling 1.7 per cent in June. That was nearly double the 0.9 per cent decrease economists had expected.
But in an encouraging sign, sales rose 0.4 per cent for a second straight month. The first back-to-back increases in a year boosted hopes that businesses will begin to ramp up production to meet rising demand.
The second-quarter productivity increase reflected that the number of hours worked fell much faster than output dropped. Total hours worked dropped at an annual rate of 7.6 per cent, while the output of non-farm businesses fell at a 1.7 per cent rate.
The U.S.'s total output of goods and services, as measured by the gross domestic product, fell at an annual rate of 1 per cent in the second quarter. That was a much slower rate of decline than the previous two quarters when the economy shrank at the fastest pace in more than a half-century.
Many economists believe the recession is on the verge of ending. Should the economy start to grow in the second half of this year, some companies might boost employment - if demand for their products showed a sustained increase.
Still, the leaner work force should help keep productivity rising in coming quarters although the gains are not expected to be as large as the jump in the spring.
http://www.theglobeandmail.com/report-on-business/us-productivity-soars-as-employers-slash-payrolls/article1248985/
Ahead of the Bell: Productivity
(AP) – Aug 10, 2009
WASHINGTON — Productivity likely surged by a sizable amount in the spring as businesses worked to hold down costs in the face of the worst recession to hit the country in the post World War II period.
Economists surveyed by Thomson Reuters expect productivity grew at an annual rate of 5.3 percent in the April-June quarter. The Labor Department will release the report at 8:30 a.m. EDT Tuesday.
A productivity increase of 5.3 percent would be more than three times higher than the 1.6 percent advance recorded in the first three months of the year.
Economists are expecting the surge in productivity because they believe that businesses continued to lay off workers and trim the number of hours being worked by their remaining employees aggressively in an effort to trim their labor costs.
This effort is expected to show that unit labor costs fell at an annual rate of 2.4 percent in the second quarter, compared to a 3 percent rise in the first three months of the year.
The improvement in productivity is occurring because businesses have been successful in cutting the number of hours worked at an even faster pace than their output has been falling.
The nation's total output of goods and services, as measured by the gross domestic product, fell at an annual rate of 1 percent in the second quarter, a much slower rate of decline than the previous two quarters, when the economy shrank at the fastest pace in more than a half-century.
Productivity, the amount of output per hour of work, is a key ingredient for rising living standards because it means that companies can pay their workers more with the wage increases financed by rising output.
However, in the current hard times, companies are expected to use the productivity gains to bolster their bottom lines, meaning that the increases will go to shoring up company profits rather than boosting workers' wages and benefits.
But many economists believe that the current recession, already the longest in the post World War II period, is on the verge of ending. If the economy starts to post better growth in the second half of this year, companies are expected to switch from layoffs and trimming workers' hours to boosting employment as demand for their products increases.
The leaner work force, however, should help keep productivity rising in coming quarters although the gains are not expected to be as large as the jump in the spring.
Copyright © 2009 The Associated Press. All rights reserved.
http://www.google.com/hostednews/ap/article/ALeqM5jFs8yytuTwr7hiq5T9qk59jdx9FAD9A0926O1
WASHINGTON — Productivity likely surged by a sizable amount in the spring as businesses worked to hold down costs in the face of the worst recession to hit the country in the post World War II period.
Economists surveyed by Thomson Reuters expect productivity grew at an annual rate of 5.3 percent in the April-June quarter. The Labor Department will release the report at 8:30 a.m. EDT Tuesday.
A productivity increase of 5.3 percent would be more than three times higher than the 1.6 percent advance recorded in the first three months of the year.
Economists are expecting the surge in productivity because they believe that businesses continued to lay off workers and trim the number of hours being worked by their remaining employees aggressively in an effort to trim their labor costs.
This effort is expected to show that unit labor costs fell at an annual rate of 2.4 percent in the second quarter, compared to a 3 percent rise in the first three months of the year.
The improvement in productivity is occurring because businesses have been successful in cutting the number of hours worked at an even faster pace than their output has been falling.
The nation's total output of goods and services, as measured by the gross domestic product, fell at an annual rate of 1 percent in the second quarter, a much slower rate of decline than the previous two quarters, when the economy shrank at the fastest pace in more than a half-century.
Productivity, the amount of output per hour of work, is a key ingredient for rising living standards because it means that companies can pay their workers more with the wage increases financed by rising output.
However, in the current hard times, companies are expected to use the productivity gains to bolster their bottom lines, meaning that the increases will go to shoring up company profits rather than boosting workers' wages and benefits.
But many economists believe that the current recession, already the longest in the post World War II period, is on the verge of ending. If the economy starts to post better growth in the second half of this year, companies are expected to switch from layoffs and trimming workers' hours to boosting employment as demand for their products increases.
The leaner work force, however, should help keep productivity rising in coming quarters although the gains are not expected to be as large as the jump in the spring.
Copyright © 2009 The Associated Press. All rights reserved.
http://www.google.com/hostednews/ap/article/ALeqM5jFs8yytuTwr7hiq5T9qk59jdx9FAD9A0926O1
Labor costs fall as productivity increases slightly
Humboldt Beacon
Posted: 08/20/2009
According to the latest the Bureau of Labor Statistics, worker productivity increased at an annual rate of 6.4 percent in the second quarter of 2009. This is the biggest quarterly gain since a 9.7 percent increase in the third quarter of 2003.
As worker productivity increased, unit labor costs fell by 5.8 percent, indicating employees are doing more work with less pay. Economists are concerned that instead of hiring more people, businesses are holding on to profits earned from increased productivity and lower labor costs.
In additon, the recession eased up in the second quarter. The gross domestic product (GDP) fell at a lower pace than economists expected, according to a recent government report. The GDP fell by 1 percent in the second quarter of 2009 after falling at an annual rate of 6.4 percent in the first quarter, the Commerce Department reported. Key factors in bettering GDP performance included fewer spending cuts by businesses, increased spending by federal and local governments, and improved trade, the report showed. However, consumers are still held back on spending due to rising unemployment, decreased retirement savings, and falling home values.
http://www.humboldtbeacon.com/ci_13166946
Posted: 08/20/2009
According to the latest the Bureau of Labor Statistics, worker productivity increased at an annual rate of 6.4 percent in the second quarter of 2009. This is the biggest quarterly gain since a 9.7 percent increase in the third quarter of 2003.
As worker productivity increased, unit labor costs fell by 5.8 percent, indicating employees are doing more work with less pay. Economists are concerned that instead of hiring more people, businesses are holding on to profits earned from increased productivity and lower labor costs.
In additon, the recession eased up in the second quarter. The gross domestic product (GDP) fell at a lower pace than economists expected, according to a recent government report. The GDP fell by 1 percent in the second quarter of 2009 after falling at an annual rate of 6.4 percent in the first quarter, the Commerce Department reported. Key factors in bettering GDP performance included fewer spending cuts by businesses, increased spending by federal and local governments, and improved trade, the report showed. However, consumers are still held back on spending due to rising unemployment, decreased retirement savings, and falling home values.
http://www.humboldtbeacon.com/ci_13166946
Thursday, July 2, 2009
California in 'fiscal emergency'
The governor of California has declared a fiscal emergency in the US state to address a budget deficit of some $24.3bn (£14.5bn).
Governor Arnold Schwarzenegger also ordered many state offices to close for three days each month until June 2010, with staff unpaid for those days.
California has been one of the US states hardest hit by the recession.
The moves comes after state legislators missed a 1 July deadline to approve a budget for the coming financial year.
State Controller John Chiang has said the failure to meet the deadline means the state deficit will increase by up to $6.5bn by September.
Mr Chiang told the BBC that many vulnerable people had been put in harm's way by the state's failure to agree the budget and to provide "essential dollars to help these people pay their rent, to put food on the table or to pay their utility bill".
He had earlier warned that drastic measures would have to be taken to conserve cash, including delaying payments to companies working for the state and to those relying on benefits and grants.
Under the emergency measures, some state offices will be closed on the first, second and third Friday of every month until June 2010, with staff not paid for those days.
Mr Schwarzenegger said in a statement that although the legislature had failed to remedy the budget problems, "solving the entire deficit" remained his "first and only priority".
"I will not rest until we get it done. I will not be a part of pushing this crisis down the road - the road stops here," he said.
The White House said it was closely monitoring the situation in the state.
'Still proud'
On Tuesday, the Californian Senate failed to agree on Democratic proposals to shave $3.3bn from education and other programmes as a stopgap measure to address the shortfall.
Democrats believe cuts should not slash vital social programmes while Republicans argued that much deeper spending cuts were needed to balance the budget.
Republicans and Mr Schwarzenegger have also ruled out tax increases.
California struggles to balance its budget every year, but this year has been particularly difficult.
And the size of the Californian economy - it is the world's eighth largest economy and generates nearly 13% of US gross domestic product - means what happens there matters for the rest of the country.
But Mr Schwarzenegger said that despite the crisis, he was proud of California, saying 30 more states were also yet to agree a budget.
For many states, 30 June heralded the end of the fiscal year, but several were facing crucial decisions to balance the books as the deadline neared.
Many of the states are legally required to have a balanced budget, which can mean cutting services and firing workers.
US MEDIA REACTION TO THE FISCAL CRISIS
Today's California visionaries are calling for a constitutional convention to rewrite the plainly dysfunctional rules by which the state governs itself. It is not only Californians but also America that has a stake in their success. A California that decimates itself during recessions drags the rest of the nation down with it.
Harold Meyerson, writing in the Washington Post, says California
Democrats and the governor, and the Republican lawmakers who take pride in never voting in favour of any budget, have set us on a road toward two possible cataclysms: a popular revolt that will further diminish the power of government as we know it, and ruinous default that keeps the recession alive for another decade and plunges Californians, and perhaps all Americans, into nearly unimaginable misery. Sacramento players should check their rear view mirrors. Both objects are closer than they appear.
A Los Angeles Times editorial also warns that financial collapse in California
Why is this happening to California? The worst economic downturn in 60 years is playing a big role. But so is the US Senate's moronic decision to cut nearly $100 billion in state stabilization funds from the stimulus earlier this year. That money would have gone to states like Illinois and California, helping keep schools open, keep kids on health care, and prevent budget cuts from strangling economic recovery.
Blogger Eugene, writing in the Daily Kos, says Republicans are
Both the social and physical infrastructure of California is deficient and continues to degrade. It is no exaggeration to say that the health, welfare and safety of our society are endangered. "California has become ungovernable" has evolved from an observation to a cliche... The state now stares into a $24.3 billion budget hole. As the governor and the legislature play more political games, California faces the possibility of literally going broke.
On SDNN, Chris Crotty and Tom Murray say the budget crisis has
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/americas/8129840.stm
Published: 2009/07/02 11:20:35 GMT
Governor Arnold Schwarzenegger also ordered many state offices to close for three days each month until June 2010, with staff unpaid for those days.
California has been one of the US states hardest hit by the recession.
The moves comes after state legislators missed a 1 July deadline to approve a budget for the coming financial year.
State Controller John Chiang has said the failure to meet the deadline means the state deficit will increase by up to $6.5bn by September.
Mr Chiang told the BBC that many vulnerable people had been put in harm's way by the state's failure to agree the budget and to provide "essential dollars to help these people pay their rent, to put food on the table or to pay their utility bill".
He had earlier warned that drastic measures would have to be taken to conserve cash, including delaying payments to companies working for the state and to those relying on benefits and grants.
Under the emergency measures, some state offices will be closed on the first, second and third Friday of every month until June 2010, with staff not paid for those days.
Mr Schwarzenegger said in a statement that although the legislature had failed to remedy the budget problems, "solving the entire deficit" remained his "first and only priority".
"I will not rest until we get it done. I will not be a part of pushing this crisis down the road - the road stops here," he said.
The White House said it was closely monitoring the situation in the state.
'Still proud'
On Tuesday, the Californian Senate failed to agree on Democratic proposals to shave $3.3bn from education and other programmes as a stopgap measure to address the shortfall.
Democrats believe cuts should not slash vital social programmes while Republicans argued that much deeper spending cuts were needed to balance the budget.
Republicans and Mr Schwarzenegger have also ruled out tax increases.
California struggles to balance its budget every year, but this year has been particularly difficult.
And the size of the Californian economy - it is the world's eighth largest economy and generates nearly 13% of US gross domestic product - means what happens there matters for the rest of the country.
But Mr Schwarzenegger said that despite the crisis, he was proud of California, saying 30 more states were also yet to agree a budget.
For many states, 30 June heralded the end of the fiscal year, but several were facing crucial decisions to balance the books as the deadline neared.
Many of the states are legally required to have a balanced budget, which can mean cutting services and firing workers.
US MEDIA REACTION TO THE FISCAL CRISIS
Today's California visionaries are calling for a constitutional convention to rewrite the plainly dysfunctional rules by which the state governs itself. It is not only Californians but also America that has a stake in their success. A California that decimates itself during recessions drags the rest of the nation down with it.
Harold Meyerson, writing in the Washington Post, says California
Democrats and the governor, and the Republican lawmakers who take pride in never voting in favour of any budget, have set us on a road toward two possible cataclysms: a popular revolt that will further diminish the power of government as we know it, and ruinous default that keeps the recession alive for another decade and plunges Californians, and perhaps all Americans, into nearly unimaginable misery. Sacramento players should check their rear view mirrors. Both objects are closer than they appear.
A Los Angeles Times editorial also warns that financial collapse in California
Why is this happening to California? The worst economic downturn in 60 years is playing a big role. But so is the US Senate's moronic decision to cut nearly $100 billion in state stabilization funds from the stimulus earlier this year. That money would have gone to states like Illinois and California, helping keep schools open, keep kids on health care, and prevent budget cuts from strangling economic recovery.
Blogger Eugene, writing in the Daily Kos, says Republicans are
Both the social and physical infrastructure of California is deficient and continues to degrade. It is no exaggeration to say that the health, welfare and safety of our society are endangered. "California has become ungovernable" has evolved from an observation to a cliche... The state now stares into a $24.3 billion budget hole. As the governor and the legislature play more political games, California faces the possibility of literally going broke.
On SDNN, Chris Crotty and Tom Murray say the budget crisis has
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/americas/8129840.stm
Published: 2009/07/02 11:20:35 GMT
US job losses worse than expected
The number of jobs lost in the US last month came in at 467,000, which was much more than had been expected.
The jobless rate rose to 9.5% in June, from 9.4% in May, as the US economy continued to struggle.
Since the start of the recession in December 2007, the number of jobless people has risen by 7.2 million, the Department of Labor said.
The unemployment rate was slightly lower than had been expected, but was still the highest since August 1983.
The number of people losing their jobs can be higher than expected at the same time as the jobless rate is lower than expected, because they are measured in different ways.
The former is a measure of how many people are working, while the latter shows the number of people looking for work.
Not everybody who has lost a job will be looking for another one.
'Terrible' market
The non-farm payrolls number would usually be released on a Friday, but has been announced a day early because US markets will be closed on Friday.
The latest set of figures also included revisions to data for the two previous months, with the number of jobs lost in April rising 15,000 to 519,000 and the number lost in May falling 23,000 to 322,000.
Average hourly earnings were unchanged at $18.53 (£11.33).
A total of 14.7 million people were unemployed in June, the figures showed.
The job losses come despite recent signs of optimism from surveys.
"The job market is terrible. It's as bad as we've seen in our lifetime," said Keith Hembre, chief economist at FAF Advisors in Minneapolis.
"The light at the end of tunnel is that we see some stability in domestic demand and some demand overseas."
'Longer process'
In its separate weekly jobs report, the Department of Labor said that the number of newly laid-off workers applying for employment benefits last week fell to 614,000, while the number of people continuing to claim benefits unexpectedly fell to 6.7 million.
The average working week for production and non-supervisory workers fell 0.1 hour to 33.0 hours, which was the lowest since records began in 1964, suggesting that more people are working part-time.
The average working week for manufacturers rose 0.1 hour to 39.5 hours.
"I don't think it means that the story that the economy is bottoming out is wrong, I still think that is the right story," said Nigel Gault, chief US economist at IHS Global Insight.
"But it's evident that it's going to be a much longer process to bottom out in the labour market than it is to bottom out in the auto market or industrial production or GDP."
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8130703.stm
Published: 2009/07/02 13:36:06 GMT
The jobless rate rose to 9.5% in June, from 9.4% in May, as the US economy continued to struggle.
Since the start of the recession in December 2007, the number of jobless people has risen by 7.2 million, the Department of Labor said.
The unemployment rate was slightly lower than had been expected, but was still the highest since August 1983.
The number of people losing their jobs can be higher than expected at the same time as the jobless rate is lower than expected, because they are measured in different ways.
The former is a measure of how many people are working, while the latter shows the number of people looking for work.
Not everybody who has lost a job will be looking for another one.
'Terrible' market
The non-farm payrolls number would usually be released on a Friday, but has been announced a day early because US markets will be closed on Friday.
The latest set of figures also included revisions to data for the two previous months, with the number of jobs lost in April rising 15,000 to 519,000 and the number lost in May falling 23,000 to 322,000.
Average hourly earnings were unchanged at $18.53 (£11.33).
A total of 14.7 million people were unemployed in June, the figures showed.
The job losses come despite recent signs of optimism from surveys.
"The job market is terrible. It's as bad as we've seen in our lifetime," said Keith Hembre, chief economist at FAF Advisors in Minneapolis.
"The light at the end of tunnel is that we see some stability in domestic demand and some demand overseas."
'Longer process'
In its separate weekly jobs report, the Department of Labor said that the number of newly laid-off workers applying for employment benefits last week fell to 614,000, while the number of people continuing to claim benefits unexpectedly fell to 6.7 million.
The average working week for production and non-supervisory workers fell 0.1 hour to 33.0 hours, which was the lowest since records began in 1964, suggesting that more people are working part-time.
The average working week for manufacturers rose 0.1 hour to 39.5 hours.
"I don't think it means that the story that the economy is bottoming out is wrong, I still think that is the right story," said Nigel Gault, chief US economist at IHS Global Insight.
"But it's evident that it's going to be a much longer process to bottom out in the labour market than it is to bottom out in the auto market or industrial production or GDP."
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8130703.stm
Published: 2009/07/02 13:36:06 GMT
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