The latest overall job loss numbers showed a loss of 240,000 jobs in October and the unemployment rate climbed to 6.5%. This is the highest unemployment rate since March 1994. The September payroll numbers were revised to a loss of 284,000. 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 was manufacturing, construction and professional services. Again, health services and government added the most jobs.
Total change in non-farm payroll = - 240,000
- Private Sector = - 263,000
- Natural Resources & Mining = + 7,000
- Construction = - 49,000
- Manufacturing = - 90,000
- Durable goods = - 75,000
- Non-durable goods = - 15,000
- Services = - 131,000
- Wholesale Trade = - 21,500
- Retail Trade = - 38,100
- Transportation = - 9,200
- Utilities = + 1,800
- Information & Media = Unchanged
- Financial Svcs & Real Estate = - 24,000
- Professional & Business Svcs = - 45,000
- Education = - 11,200
- Health Svcs = + 31,900
- Leisure = - 16,000
- Government = +23,000
With the increase in job losses, the futures are only pointing to a slightly lower open as many believe the tumble over the past two days has already priced in the weakening jobs numbers. The continued numbers in manufacturing support the concerns of the automakers like GM and Ford who have gone to Washington for aid. Like its American competitors, Toyota Motor also is struggling and announced a profit warning.
- Read more about Ford's latest cuts here.
- Read more about Toyota's warning here.