The latest overall job loss numbers showed a loss of 345,000 jobs in May and the unemployment rate climbed to 9.4%, the highest rate since August 1983. The March and April numbers were revised upward to losses of 652,000 and 504,000, respectively. 6.0 million jobs have now been lost since this recession began. 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 added the most jobs. The government shed 7,000 jobs after adding 92,000 last month.
Total change in non-farm payroll = - 345,000
- Private Sector = - 338,000
- Natural Resources & Mining = - 10,000
- Construction = - 59,000
- Manufacturing = - 156,000
- Durable goods = - 131,000
- Non-durable goods = - 25,000
- Services = - 120,000
- Wholesale Trade = - 21,900
- Retail Trade = - 17,500
- Transportation = - 14,500
- Utilities = - 200
- Information & Media = - 24,000
- Financial Svcs & Real Estate = - 30,000
- Professional & Business Svcs = - 51,000
- Education = + 7,900
- Health Svcs = + 36,400
- Leisure = + 3,000
- Government = - 7,000
The futures surged up on the much better than expected news. In the pre-market, Alcoa , Bank of America , Boeing , General Electric and Caterpillar were leading the Dow.
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