The latest overall job loss numbers showed a loss of 263,000 jobs in September and the unemployment rate rose to 9.8%, the fewest losses since August last year but highest unemployment rate since mid-1983. The losses were worse than analysts had expected.
The August and July numbers were revised to losses of 201,000 and 304,000, respectively. 7.2 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. The unemployment rate peaked at 10.8% at the end of the 1981-82 recession.
Here is a breakdown of where the job losses were as well as which sectors were adding jobs. Worst hit was manufacturing, construction, and for a first time during this recession, government. Again, health services added the most jobs.
Total change in non-farm payroll = - 263,000
- Private Sector = - 198,000
- Natural Resources & Mining = - 1,000
- Construction = - 64,000
- Manufacturing = - 51,000
- Durable goods = - 43,000
- Non-durable goods = - 8,000
- Services = - 147,000
- Wholesale Trade = - 4,900
- Retail Trade = - 38,500
- Transportation & Warehousing = - 15,400
- Utilities = - 700
- Information & Media = Unchanged
- Financial Svcs & Real Estate = - 10,000
- Professional & Business Svcs = - 8,000
- Education = - 16,900
- Health Svcs = + 20,500
- Leisure = - 9,000
- Government = - 53,000
The futures remain down on the worse the expected news. In the pre-market, Alcoa , American Express , Bank of America , Caterpillar , General Electric and Merck were leading the Dow to the downside.
Comments? Send them to email@example.com