Gallup predicts increased job Loss Next Year-Lower Consumer Spending

Gallup weekly economic data released today that has taken some of the excitement away from the recent unemployment figures. The economic weekly Gallop suggests that job losses will continue into next year. The recent up tick in employment figures that caused the unemployment rate to go down from 10.2% to 10% were the direct effect of two main factors.

Consumer spending was down 21% last week from the same holiday week in 2008.

Temporary hiring for the holiday seasons by retailers was a major reason for the decline in the unemployment rate. After the Christmas and holiday seasons are over retailers will lay off most of the new hires. The other reason is close to 100.000 people gave up looking for work all together "Which search resulted in a decline in the labor force figures Used to calculate unemployment numbers.

Most of the improvement in job-market conditions so far in 2009 seems attributable to a reduction in layoffs as opposed to a much-needed increase in job creation. The good news is hiring and firing figures are much better than the same time last year.

Based on the numbers, unless something miraculous happens in the next two weeks, consumer spending for the holidays will not be anywhere close to the Dismal numbers last year. Many retailers who in past years were saved by the holiday season may find it hard to continue with out help from the government.

President Barack Obama Plans to Give a speech Tuesday on job growth and the economy. they will also mention the latest on the surplus tarp.

Gallup predicts increased job Loss Next Year-Lower Consumer Spending