It’s on again! The latest taper talk would suggest the Fed is about ready to taper back the purchase of Mortgage Backed Securities and Treasuries. A common belief is that the Fed cannot do so without disrupting a so-called recovery. The argument, available today, however, is that the economy is in recovery and now the Fed is ready to act on its long-hinted intention to wean the economy off its current stimulus program.
I say “available today” because jobs data just came in stronger than expected, suggesting the economy has turned the corner and can grow on its own with less help from the Fed. My take on the jobs data is this…DAH! What do you expect during the season of seasonal hiring? UPS, for example, began hiring some 55,000 seasonal workers back in October. Last year Fed Ex hired 20,000 seasonal workers and this year they expect to increase that amount.
Retailers are also going for broke in a massive hiring spree. According to the Wall Street Journal, Amazon will hire 70,000 seasonal workers. In other reports WalMart is said to have hired 55,000 and Target Stores are weighing in with 70,000 new hires for the holidays.
According to a recent Forbes article, of 2100 retailers surveyed, 39% said they would be hiring seasonal help. That’s up from 36% last year. Some of those mentioned were Kohls, JCPenney and Toys R Us. The Gap listed 10,000 positions to fill and Best Buy listed 6300 more. Virtually hundreds more retailers are following suit in hiring hundreds of thousands of seasonal workers.
If we do a little math, we see well over 200,000 seasonal hires by just a few large employers mentioned herein. This may spell temporary relief to some of our 11.3 million unemployed, but it is ...