The latest overall job loss numbers showed a loss of 651,000 jobs in January and the unemployment rate climbed to 8.1%. This is the highest unemployment rate since December 1983. The January and December numbers were revised to a loss of 655,000 and 681,000 respectively. The December monthly job drop is the biggest we have seen since October 1949, when 834,000 jobs were lost. 4.4 million jobs have now been lost since this recession began, 14 months ago. 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 and professional services. Again, health services and government added the most jobs.
Total change in non-farm payroll = - 651,000
- Private Sector = - 660,000
- Natural Resources & Mining = - 4,000
- Construction = - 104,000
- Manufacturing = - 168,000
- Durable goods = - 132,000
- Non-durable goods = - 36,000
- Services = - 375,000
- Wholesale Trade = - 37,000
- Retail Trade = - 39,500
- Transportation = - 48,900
- Utilities = + 1,100
- Information & Media = - 15,000
- Financial Svcs & Real Estate = - 44,000
- Professional & Business Svcs = - 180,000
- Education = - 4,200
- Health Svcs = + 30,400
- Leisure = - 33,000
- Government = +9,000
Despite the high number of job losses, the futures jumped on the news. In the pre-market, Bank of America , Citigroup , and JP Morgan Chase are leading the Dow up with each up over 3%. General Motors and Boeing are adding downward pressure.
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