Amidst all the talk of a recovery the country continues to lose jobs and the unemployment rate keeps rising. Unemployment climbed to 10.2% in October according to the Department of Labor's jobs report. Marketwatch says this is despite the fact that the economy grew 3.2% in the third quarter.
The October jobs report shows a growing disconnect between a recovery in economic output and continued job losses. The economy grew at a 3.2% annual rate in the third quarter, with productivity rising at a 9.5% rate.
"The grinding pace of progress in labor markets likely flags a tepid economic recovery," wrote Sal Guatieri, an economist for BMO Capital Markets.
The report was worse than expected. Economists surveyed by MarketWatch were forecasting a rise in the unemployment rate to 10%, with 150,000 lost payroll jobs. An upward revision to August and September payrolls cushioned some of the disappointment, however.
The 3.2% growth is likely from the Cash for Clunkers program and the infusion of cash by the government. The economy is likely to contract again if a way to create jobs is not found soon. 190,000 jobs were lost in October. It was the 22nd straight month the U.S. economy lost jobs.
