The latest overall job loss numbers showed a loss of 216,000 jobs in August and the unemployment rate rose to 9.7%, the fewest losses since August last year but highest unemployment rate since mid-1983.
The June and July numbers were revised upward to losses of 463,000 and 276,000, respectively. 6.9 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 financial services. Again, health services added the most jobs.
Total change in non-farm payroll = - 216,000
- Private Sector = - 198,000
- Natural Resources & Mining = - 8,000
- Construction = - 65,000
- Manufacturing = - 63,000
- Durable goods = - 51,000
- Non-durable goods = - 12,000
- Services = - 80,000
- Wholesale Trade = - 17,100
- Retail Trade = - 9,600
- Transportation = - 1,000
- Utilities = - 200
- Information & Media = - 10,000
- Financial Svcs & Real Estate = - 28,000
- Professional & Business Svcs = - 22,000
- Education = + 3,700
- Health Svcs = + 47,400
- Leisure = - 21,000
- Government = - 18,000
The futures remain up on the mixed news. In the pre-market, Alcoa , American Express , Bank of America , Caterpillar , Caterpillar and Kraft Foods were leading the Dow to the upside.
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