NPR for North Texas
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

It's Only Money

By Maxine Shapiro, KERA 90.1 business commentator

Dallas, TX – It's Friday so "It's Only Money," a review of the big and not-so-big stories of the week. I'm Maxine Shapiro with KERA Marketplace Midday.

Yesterday the weekly jobless claim reported another increase. Workers applying for unemployment benefits now number 445,000. That's the highest we've had since April last year. Remember, any number above 400,000 reflects a weak labor market. And today the Labor Department announced March unemployment unchanged at 5.8%. Still, 108, 000 jobs were cut from the market. And all any analyst can say is blame it on the war.

President and COO Carl Camden of Kelly Services, the worldwide leader in the staffing industry, told CNBC this morning, after a profitable fourth quarter end of last year, it has slowed down significantly since January. With all eyes focused on the war, companies are not introducing new products. No one would pay attention. In Camden's words, this has a "chilling effect on demand for products and LABOR." Temporary employment has also seen a slowdown - usually a precursor for permanent employment.

Here's a quick look at one company. Last year at this time, American Greetings reported a loss of $13.1 million for the quarter. This year, a profit of almost $45.5 million was reported for the same quarter. What did they do? Revamped their structure by closing plants and laying off workers.

This simple example is not a product of the war. It's a result of the recession and a desire to raise shareholder value. But if I can share any hopeful news, some economists believe the labor market will actually turn around on a dime as soon as the war is over. May it be soon.

And on a lighter note, literally, you can now get some of your favorite Hershey's candies, sugar free. But I'm so glad they left the Kiss alone. Some things are too sacred. For KERA Marketplace Midday, I'm Maxine Shapiro.

 

Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.

Email Maxine Shapiro about this story.