The latest overall job loss numbers showed a loss of 533,000 jobs in November and the unemployment rate climbed to 6.7%. This is the highest drop in nonfarm payrolls since 1974 and the highest unemployment rate since October 1993. The October payroll numbers were revised to a loss of 320,000 and September was revised to a loss of 403,000. 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 (past 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 retail, manufacturing, construction and professional services. Again, health services and government added the most jobs.
Total change in non-farm payroll = - 533,000
- Private Sector = - 540,000
- Natural Resources & Mining = + 4,000
- Construction = - 82,000
- Manufacturing = - 85,000
- Durable goods = - 62,000
- Non-durable goods = - 23,000
- Services = - 370,000
- Wholesale Trade = - 25,200
- Retail Trade = - 91,300
- Transportation = - 31,500
- Utilities = + 800
- Information & Media = -19,000
- Financial Svcs & Real Estate = - 32,000
- Professional & Business Svcs = - 136,000
- Education = + 9,800
- Health Svcs = + 42,500
- Leisure = - 76,000
- Government = +7,000
With the increase in job losses, the futures are only pointing to a lower open. In the pre-market, Bank of America , American Express , JP Morgan Chase , AT&T , and United Technologies are weighing on the Dow.