The latest overall job loss numbers showed a loss of 467,000 jobs in June and the unemployment rate climbed to 9.5%, the highest rate since August 1983.
The May and April numbers were revised to losses of 322,000 and 519,000, respectively. 6.5 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 and education added the most jobs. The government surprisingly shed 52,000 jobs.
Total change in non-farm payroll = - 467,000
- Private Sector = - 415,000
- Natural Resources & Mining = - 8,000
- Construction = - 79,000
- Manufacturing = - 136,000
- Durable goods = - 112,000
- Non-durable goods = - 24,000
- Services = - 244,000
- Wholesale Trade = - 15,900
- Retail Trade = - 21,000
- Transportation = - 13,900
- Utilities = - 200
- Information & Media = - 21,000
- Financial Svcs & Real Estate = - 27,000
- Professional & Business Svcs = - 118,000
- Education = + 14,900
- Health Svcs = + 18,600
- Leisure = - 18,000
- Government = - 52,000
The futures dropped up on the worse than expected news. In the pre-market, 3M, Alcoa , Kraft , Travelers and Bank of America were leading the Dow to the downside.
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