The latest overall job loss numbers showed a loss of 84,000 jobs in August and a jump in the unemployment rate up to 6.1%, nearly a five-year high. The drop is still below the six figure numbers seen in past recessions. In the 2001 recession, monthly losses hit a high of 325,000. The 1990-91 recession peaked at 306,000 losses. As you can see from the chart below, numbers peak toward the end of a recession (recessions are marked by grey bands), making employment a lagging indicator.
Here is a breakdown of where the job losses were as well as which sectors were adding jobs. Worst hit again was manufacturing and professional services. Health Services, Education and Government added the most jobs.
Total change in non-farm payroll = - 84,000
- Private Sector = - 101,000
- Natural Resources & Mining = + 12,000
- Construction = - 8,000
- Manufacturing = - 61,000
- Durable goods = - 55,000
- Non-durable goods = - 6,000
- Services = - 27,000
- Wholesale Trade = - 10,500
- Retail Trade = - 19,900
- Transportation = - 4,300
- Utilities = - 600
- Information & Media = - 3,000
- Financial Svcs & Real Estate = - 3,000
- Professional & Business Svcs = - 53,000
- Education = + 16,300
- Health Svcs = + 38,100
- Leisure = - 4,000
- Government = +17,000
After a tough day yesterday, the futures were pointing down further this morning on the news. On the open, leading the Dow to the downside are AIG , Bank of America , Citigroup , AT&T , and IBM .