The latest overall job loss numbers showed a loss of 247,000 jobs in July and the unemployment rate fell to 9.4%, the fewest losses since August last year.
The June and May numbers were revised down to losses of 443,000 and 303,000, respectively. 6.7 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.
Total change in non-farm payroll = - 247,000
- Private Sector = - 254,000
- Natural Resources & Mining = unchanged
- Construction = - 76,000
- Manufacturing = - 52,000
- Durable goods = - 32,000
- Non-durable goods = - 20,000
- Services = - 119,000
- Wholesale Trade = - 18,600
- Retail Trade = - 44,100
- Transportation = - 22,400
- Utilities = - 1,500
- Information & Media = - 16,000
- Financial Svcs & Real Estate = - 13,000
- Professional & Business Svcs = - 38,000
- Education = - 900
- Health Svcs = + 17,300
- Leisure = + 9,000
- Government = + 7,000
After starting the morning relatively flat, the futures jumped up on the better than expected news. In the pre-market, Alcoa , American Express , Bank of America , Caterpillar , General Electric and Kraft Foods were leading the Dow to the upside.
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