Sung Sohn Gains Quotations

This report is a slow boat to China, reflecting continuing business caution about hiring people. Facing unprecedented competition from both domestic and foreign sources, businesses are still focused on productivity gains with as few employees as possible.

Unless the labor market gains some steam and momentum, both real income and confidence of consumers would be hurt.

That's why confidence is important. If it remains healthy, gains in sales will be high enough to offset the negatives coming from job cuts. It's a tug-of-war; right now, job cuts are winning.

Employment gains are rising at a slower rate, retail sales are decelerating somewhat, the stock market is going through some turmoil and the Middle East situation is also probably having a dampening impact on consumers' willingness to spend, ... So I think the Michigan confidence report is consistent with an overall picture in which consumers are doing well, but probably taking a breather for a while.

Employment gains really haven't come from full-time workers. They're coming primarily from part-time, temporary help, ... Businesses are still trying to maintain flexibility by not hiring more expensive, full-time workers. That might be one of the reasons why we're seeing an increase in continued claims.