Lower energy prices will cushion the blow to the economy from the higher prices so far. Psychologically, it helps the consumer and that means the hit to the economy will not be as great as feared earlier.
More globalization means there's more pressure to increase productivity, not to reduce it. No pricing power means there's more pressure to increase productivity, not less, ... There's so much pressure to push it higher, it will be difficult for cyclical factors to push it lower.
More people are entering the labor force, so there is more competition. More competition means there's less leverage for employees.
The decline in hours means the economy will be limping along once again. Every tenth of an hour lost has the same economic impact as losing 200,000 jobs.
Preliminary estimates indicate 60 percent damage to downtown New Orleans. Plenty of cleanup work and rebuilding will follow in all the areas. That means over the next 12 months, there will be lots of job creation which is good for the economy.
This employment report means that the phrase 'considerable period' will stick around for a considerably longer period of time.
Any time you have a situation like this it creates opportunities for companies to clean up their attics, and that means lowering estimates and partly, or completely, attributing it to Katrina.