As President-elect Barack Obama began to assemble his economic team, the October employment figures released Friday provided a grim reminder of the country’sprecarious financial situation, although the stock market seemed to take the news in stride, with gains in early morning trading.
The real blow to theeconomy came from the manufacturing, construction and services sectors, whichdrove overall employment down by 240,000 jobs in October, significantly morethan consensus estimates that had predicted a loss of 200,000. As a result, theunemployment rate also was worse than expected, rising to 6.5 percent from 6.1percent in September. Department stores slashed 18,000 jobs last month to employ1.476 million, while apparel and accessory specialty stores cut 700 positions toemploy 1.493 million, the Labor Department reported.
Since January, theeconomy has slashed 1.2 million jobs, with more than half of those being lost inthe last three months. Job losses in October followed a decline of 284,000 jobsin September, revised from an initial estimate of 159,000. The job loss inSeptember was the worst reported since October 2001, directly following theSept. 11, 2001, terrorist attacks.
Apparel manufacturers cut 4,000 jobs in October.Textile mills that manufacture primarily apparel fabric, cut 1,300 jobs. Textileproduct mills, which produce industrial and home furnishing textiles, cut 500jobs. The downward revisions combined with October losses mean there’s atotal of more than 400,000 jobs reported lost that weren’t expected, saidCharles McMillion, president and chief economist, MBG InformationServices.
“It doesn’t bode well at all,” he said. “in an environment that isalready awful across the board, these figures mean retailers are going to needto be even more aggressive heading into the holiday season. Peter Morici, aprofessor at the Robert H. Smith School of Business at the University ofMaryland, said, “This is an economy that’s in wholesale meltdown.”
Retailsales, manufacturing levels and the service sector have all taken hits in recentmonths, he said. Those contractions in the real economy combined with the creditcrisis have created a “two-wheeled recession,” he said.
“November job lossesare very likely to be worse,” McMillion said. “Recovery programs are urgentlyneeded that are of the scope and scale of New Deal initiatives.”
Stocksrebounded Friday morning despite the bleak job picture.
The Standard &Poor’s Retail Index inched up 1.1 percent to 270.64 in the first 45 minutes oftrading. The index fell a collective 10.8 percent on Wednesday and Thursday asinvestors turned their attention to economic concerns and away from thepresidential election.
The Dow Jones Industrial Average rose 2 percent to8.870.14 in early trading.
Among the retailers gaining ground were SearsHolding Corp, up 4.1 percent to $52.68; Charming Shoppes Inc., 3.1 percent to$1.33; AnnTaylor Stores Corp., 2.6 percent to $9.16; Gap Inc., 2.4 percent to$12.76; Macy’s Inc., 1.9 percent to $10.64, and Target Corp., 0.5 percent to$35.64.
Vendors picking up steam included Warnaco Group Inc., up 8 percent to$19.22; VF Corp., 2.5 percent to $52.74; and Phillips Van Heusen Corp., 1.4percent to $20.21.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion