What have you always wondered about the economy? Tell Us

Financial sector not leading layoffs yet

Dan Grech Oct 2, 2008
HTML EMBED:
COPY

Financial sector not leading layoffs yet

Dan Grech Oct 2, 2008
HTML EMBED:
COPY

TEXT OF STORY

Renita Jablonski: The Senate did pass a new version of the bailout last night. We’ll talk more about that in just a moment. At the same time, Wall Street is digesting some tough data. We learned this morning new orders to U.S. factories fell by the largest amount in nearly two years. The government is also saying today applications for unemployment benefits rose to a seven-year high last week. This follows a private report yesterday that found employers cut 95,000 jobs in September. Marketplace’s Dan Grech has more.


Dan Grech: Believe it or not, Wall Street didn’t lead the country in layoffs last month. In fact, the financial industry was fourth behind computers, automobiles and apparel.

John Challenger heads Challenger, Gray and Christmas, which released the survey. He says to give it a few weeks.

John Challenger: With all of the bad news on Wall Street, it’s likely the fourth quarter is going to take a nose dive.

Challenger says Wall Street’s credit crisis will hurt small businesses, too. Those businesses often have to wait months to get paid for their goods. So they rely on short-term loans to cover bills and payroll.

Challenger: If they can’t get those loans, they’re going to be forced to slow down their development, and that’ll lead to layoffs.

Tomorrow, the Labor Department releases its comprehensive employment report. It’s expected to show the economy as a whole shed jobs for a ninth consecutive month in September.

I’m Dan Grech for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.