April job numbers continued to be strong as reported by the DOL. 428,000 non-farm payroll jobs versus a consensus of 380,000. The unemployment rate held steady at 3.6%, or just slightly above February 2020’s multi-decade low of 3.5%.
We’ve been through a jobless recovery before, but have we ever seen a hot jobs recession before?
AW
We’ve been through a jobless recovery before, but have we ever seen a hot jobs recession before?
If companies are showing big profits, but complaining about the lack of workers, that means the companies are simply unwilling --not unable–to pay the real costs of hiring the people needed to meet the demand for their products and/or services.
If companies are showing big profits, but complaining about the lack of workers, that means the companies are simply unwilling --not unable–to pay the real costs of hiring the people needed to meet the demand for their products and/or services.
At the same time, the peak of the profit curve is not necessarily the same as the peak of the sales curve. Selling more involves spending more.
Of course, selling less than the market could buy leaves the room open for competition…
DB2
Of course, selling less than the market could buy leaves the room open for competition…
As the CFO of VW effectively said, when announcing that VW was getting on the “ATP and GP” bandwagon, with several other automakers, they are dropping all their cheaper models, running the prices up on what they still make, and if they lose potential customers, because they can’t or won’t pay the escalated prices, they don’t care.
I can’t help but wonder what their plan is to prevent someone coming in at the low end, the market companies like VW and Ford are running away from, building a customer base, and eventually eating their lunch? Or are they adopting the attitude of Radio Shack management to justify their high prices “we do people a favor when we sell them our stuff”, and arrogant themselves into crying to the government for another bailout?
Steve
I can’t help but wonder what their plan is
Right now, nobody has “a plan” because there is too much variation in terms of what will work in the long term. Right now, they are beginning to transition to a stage that permits them to be ready to move to whichever tech turns out to have the best chance of succeeding.
I see a two-part market.
Rural market–no AV and not a lot of EV–because rural is fuel oriented, primarily for their eqpt. The relatively long distances they have to travel to get to places plays a role in that choice.
Urban/city market–primarily autonomous EV because of the population density, relatively short trips, and lack of parking.
I see a two-part market.
Rural market–no AV and not a lot of EV–because rural is fuel oriented, primarily for their eqpt. The relatively long distances they have to travel to get to places plays a role in that choice.
Urban/city market–primarily autonomous EV because of the population density, relatively short trips, and lack of parking.
What do you see happening in the suburbs (intermediate density)?
DB2
What do you see happening in the suburbs (intermediate density)?
They are part of the urban/city because they depend on it. Population density is sufficient to make an autonomous EV viable/practical.
Expect an AV to be required in the entire area around the city–no human driver. Maybe no privately owned vehicles allowed because all traffic within the area is controlled by a computerized system to minimize wait and travel times. The public saves a LOT of money when they are not required to buy 1-3 vehicles per household AND pay for insurance, fuel, maintenance, storage, and so on. Transit becomes an on-demand service the city contracts out to one company. GM is moving that way and likely so are other vehicle manufacturers. FAR larger and ongoing profits compared to the “once every ten years” selling cycle they currently have. The contract system incentivizes vehicles to be built to be durable AND comfortable because it is a 15-25 year contract.