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What is Needed in Washington to Boost the Job Market?

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    Euler Hermes Chief Economist Dan North on the outlook for jobs.

  • Duration 4:40
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-- rich Edson let's throw up some of via.

-- adjectives we've been hearing about this jobs report terrible.

Awful pathetic those are just a few the words my next guest used by himself using to describe the country's dismal employment situation so.

How can we reverse the trend and avoid a recession let's ask him joining us now on a Fox Business schools from Baltimore.

Dan north chief economist.

At Mueller Hermes North America so you see any job growth of the even just 80000 that as a positive aspect of all of that pulling us out of this recovery.

Well it's better the negative that's for sure.

But it peaks in January and has been on a pretty steep downhill ever since -- have had three months in a row a blast on a 100000 growth.

We need 250000 jobs a month to to get people working again to grow this economy.

So it's you know it's well below.

What we need.

And you know there there are number reasons behind it.

Basically we have a lot of uncertainty.

All throughout the economy.

From Washington from Europe and China.

And that needs to be removed before we can get people hire some more.

Washington I get that we can't remove anything that's happening in Europe because that's not our nation that's not our eurozone and to me -- look at that -- say.

How much better might we be if that worry about Europe we're constantly overhanging these -- market forces we can't control or cancel what do we do.

Well if you're right I mean -- we can't run that show but we can hope that things get better unfortunately we're not really heavily exposed in the export arena.

We're a little bit exposed.

In in the banking sector.

But we're -- confidence so we get confidence boosted here.

You know that'll help overcome that problem.

We don't -- let me jump in the we've done so much at in an effort to do that we of that stimulus we've got that the QE1 QE2 the liquidity that the Fed poured in.

Talk cold -- -- trader who was just with us from the Chicago Mercantile Exchange says now everybody sitting there waiting to see but the Fed does but how.

How much -- has really left on behalf of the Fed wheat way to start having a real trouble around here looking to see what more they can do beyond extending.

The current so called Operation Twist of switching out certain -- -- bonds.

Right I mean real interest rates are -- reserves are -- negative than.

Part of the quantitative easing idea as to lower long term interest rates how -- -- already wanna -- -- negative.

And there's all this news look.

Also needs liquidity from QE1 QE2 sitting out there how much more unused liquidity to we need.

To boost things the front running out of ammo and that's why he's hammering congress -- much you can say.

Guys clear up this fiscal cliff thing that's really an uncertain is putting a big drag on the.

We're cycling through some of the treasury numbers here's the ten near one point 54% yield pretty pathetic if people are pouring into it nonetheless because they're so worried down.

Is there an option when it comes to the election that is part of the negativity coming from uncertainty but.

What type of leadership out of Washington would turn this around.

Right well without without having to pick a party.

I'll I'll say that this it's would help if one party or the other.

Had control -- the house the senate and the presidency.

Then you might be able to get some sort of coherent plan about running with the finances and lowering the debt level.

We haven't had a plan in three years so -- it is it making it some sort of consensus get congress on stock remove the uncertainty remove the fiscal cliff.

That's what what how.

Some people say that of gridlock is actually good for businesses in America so that government stays out of the way but you're saying that that trend should be -- in the meantime.

Any good news Bob Brusca our economists that we quoted earlier had said that the average work week link had jumped -- paid jumped.

Had taken into tiny step up about 110 of a percent of an hour whatever the incremental movement was that indicated at least it was demand for products -- -- while employers are not.

Bringing on brand new employees to do that work they are offering over time to some of their employees.

What area do you see that was a slightly positive move in that number today.

Well I haven't gone into much of the the detail there obviously we lost jobs in the government sector and the private sector little looked a little bit better.

Mostly services.

Of course it's -- largest part of our economy.

You know so there's brightness there if you want to look really hard and as far as going up.

110 of one hour and the average work week.

Yes the right direction but you know it's what we need are more people working.

So -- -- twenty -- -- not a hundred off well thank you very much good to see -- Dan thank you very much but I dam north the close.

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