The latest overall job loss numbers showed a loss of 598,000 jobs in January and the unemployment rate climbed to 7.6%. This is the highest single month drop since December 1974 and highest unemployment rate since May 1992. The December payroll numbers were revised up to a loss of 577,000 and the November numbers were revised down to a loss of 597,000. This is the 13th straight month of losses, totalling ~3.6 million jobs over the stretch. 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 manufacturing, construction and professional services. Again, health services, education and government added the most jobs.
Total change in non-farm payroll = - 597,000
- Private Sector = - 604,000
- Natural Resources & Mining = - 1,000
- Construction = - 111,000
- Manufacturing = - 207,000
- Durable goods = - 157,000
- Non-durable goods = - 50,000
- Services = - 279,000
- Wholesale Trade = - 31,000
- Retail Trade = - 45,100
- Transportation = - 73,700
- Utilities = + 1,500
- Information & Media = - 21,000
- Financial Svcs & Real Estate = - 42,000
- Professional & Business Svcs = - 121,000
- Education = + 32,600
- Health Svcs = + 20,700
- Leisure = - 28,000
- Government = +6,000
With the slightly worse than expected job losses, the futures jumped on expectations that the news will push the stimulus package forward. In the pre-market, Bank of America , Citigroup , JP Morgan Chase , American Express , and Alcoa are leading the Dow while General Electric is adding downward pressure.