Jobs Report: Unemployment Holds at 9.6%, But 95,000 Jobs Lost
October 8, 2010
(ChattahBox Business News)—The jobs report from the Bureau of Labor Statistics was released this morning with a depressing thud. While the unemployment rate is holding steady at 9.6 percent, the economy lost 95,000 jobs last month, a figure higher than expected. The overall report povides little encouraging news, as the country approaches the holiday season that will offer little cheer this year.
The elimination of temporary census workers accounted for most of the reported job losses, but state and local governments also shed workers. And although the private sector added 64,000 new jobs, it’s not enough to make a significant impact with 14.8 million Americans out of work.
“Total nonfarm payroll employment edged down by 95,000 in September. Government employment fell by 159,000, reflecting both the departure of 77,000 temporary Census 2010 workers from federal government pay-rolls and a decline of 76,000 in local government employment. Private-sector payroll employment continued to trend up (+64,000) over the month.”
A slight up tick in part-time employment, combined with an increase in the length of time a worker has been looking for work, paints a picture of a country on the edge.
“Meanwhile, the average duration of unemployment continues to hover around record highs, leading America’s 14.8 million unemployed to feel more and more desperate. In September, the typical unemployed worker had been searching for a job for 33.3 weeks.”
The Labor department also revised its figures for July and August, further weakening the economic numbers.
“The change in total nonfarm payroll employment for July was revised from -54,000 to -66,000, and the change for August was revised from -54,000 to -57,000.”
Meanwhile, U.S. companies are experiencing record profits, but they refuse to hire workers, because of the uncertain economic climate. The companies have so much extra cash that they have decided to make record-level purchases of their own stock, to create a rosier balance sheet with an accompanying rise in stock prices.
While companies, such as Pepsico, Hewlett-Packard and Microsoft sit on their piles of cash, while Americans suffer, the term un-American comes to mind.
Photo Source: U.S. Government, Great Depression, by Dorothea Lange.