Sandy's impact is also adverse. Expect income and spending to suffer. So will job creation. Most affected homeowners have no flood insurance. During hard times, their ability to rebuild and recoup is hampered.
One economist assessed conditions this way. Don't mistake headline jobs figures for economic health. Productivity, top and bottom line erosion signify decline, not growth.
Economist Jack Rasmus analyzes monthly jobs figures. He questions BLS data accuracy. He told Progressive Radio News Hour listeners that something is very wrong with the numbers.
Each fall and winter, well above trend job gains are reported. In contrast, every spring/early summer gains "collapse. There is indeed something going on with the jobs numbers, though it's not falsification," says Rasmus.
At the same time, employers are replacing full-time workers with part-time/temp ones. They're paid less with lower benefits. In addition, fictitious new business formations exaggerate job creation.
Something indeed is wrong with BLS reports. With elections days away, Friday's was very suspect. Later downward revisions may erase November 2 gains.
Moreover, Rasmus and other independent economists expect protracted hard times. Layoff notices are increasing. Throughout 2012, business investment declined precipitously.
Q III equipment and software numbers collapsed to zero. Business spending on buildings declined 4.4%. These figures represent rapid deceleration. Nothing ahead looks promising. So-called evidence that housing is recovering is illusory.