The July jobs report is out and the news is not good. The economy lost 131,000 jobs in July. The employment rate remains at 9.5%. Part of the decline was due to census workers completed their work. However, the private-sector only added a measly 71,000 jobs in July.
Total nonfarm payroll employment declined by 131,000 in July, and the unem-
ployment rate was unchanged at 9.5 percent, the U.S. Bureau of Labor Statis-
tics reported today. Federal government employment fell, as 143,000 temporary
workers hired for the decennial census completed their work. Private-sector
payroll employment edged up by 71,000.
There is worse news still and that is that the number of workers hired by private firms in July was revised down from 83,000 to just 31,000 jobs. This was a discouraging jobs report. The only hope remaining for the year is that retailers will hire a lot of workers for the holidays.
The June jobs report from the Bureau of Labor Statistics shows the country lost 125,000 jobs. The Labor Department says the losses were because 225,000 temporary census workers were no longer needed. These census workers helped the May jobs report look better than it really was.
The private sector created 83,000 jobs in June, which is more than the double the 33,000 added in May. The unemployment fell from 9.7 to 9.5%.
It is good to see the private sector jobs headed in the right direction, but the numbers are still not healthy. The economy should really be adding about 300,000 jobs each month.
You can read more about the June jobs report here, here and here.
The numbers look good in the May jobs report, but looks can be deceiving. 431,000 new jobs were created but the vast majority of them were created by the government hiring temporary census workers. The unemployment rate dipped to 9.7 percent.
President Obama said, "We're moving in the right direction. The economic policies that we put in place are working."
Economists disagree. It was the fifth straight month of jobs gains, but the private sector is still struggling. The weak jobs report raises the possibility of a double dip recession. Take a look:
Employers added 290,000 jobs in April according to Bureau of Labor Statistics. This was the biggest increase in four years. The jobless rate rose to 9.9% because more people are looking for work again.
The BLS says the unemployment rate for whites (9.0 percent)
edged up in April, while the rates for adult men (10.1 percent), adult women
(8.2 percent), teenagers (25.4 percent), blacks (16.5 percent), and Hispanics
(12.5 percent) showed little or no change.
The BLS says the biggest gains in April came in manufacturing, professional and business services, health care, and leisure and hospitality. The April jump is also partially thanks to 66,000 temporary workers hired for the decennial census.
Michael Carey, chief economist for North America at Credit Agricole CIB, thinks the economy could add 2 million jobs in 2010. Take a look:
The numbers from the March jobs report are better. The U.S. economy gain 162,000 jobs in March, the biggest jump in three years. CNN reports that this was less than what analysts were expecting, but at least it was a jobs report in the right direction.
Economists surveyed by Briefing.com had forecast a gain of 184,000 jobs. But despite missing forecasts, the March number was generally not seen as a disappointment by economists, because revisions in January and February readings added a combined 62,000 additional jobs.
The unemployment rate remained stubbornly high, holding steady at 9.7%, matching economist expectations.
The jobs created in March are still not good enough. The economy needs really needs to create at least 300,000 jobs per month. It also needs to do this consistently. Republican National Committee Chairman Michael Steele said a statement taht "a large portion of the job growth came from temporary boost in government employment."
Labor Secretary Hilda Solis says it is modest and stable growth but they know more needs to be done. Take a look:
February Jobs Report Beats Expectations But Losses Continue
36,000 jobs were lost in February according to the latest report from the U.S. Bureau of Labor Statistics (BLS). The unemployment rate held steady at 9.7 percent. The hard hit construction sector has lost 1.9 million jobs since December, 2007. The Christian Science Monitorreports that future indicators are seeing an immediate turnaround for construction.
BLS Data Indicates 800,000 More Jobs Were Lost Last Year
CNN/Money explains how the Bureau of Labor Statistics (BLS) data was off by 800,000 jobs. The BLS is revising its payroll frigures from April 2008 through March of 2009 to indicate there are 800,000 less jobs. The Labor Department's new estimate will mean that there have actually been 8 million jobs lost since 2007 instead of 7 million. CNN/Money's expert says the reason is because the models are not always correct, especially during major recessions. Take a look:
Monster Worldwide, Inc. has acquired the assets of Yahoo HotJobs from Yahoo for $225 million in cash. Monster and Yahoo have also entered into a three agreementin which Monster will become Yahoo's provider of career and job content on the Yahoo! homepage in the United States and Canada.
"HotJobs with its significant customer base plus the traffic agreement are an ideal complement to Monster's innovative recruitment solutions and global reach," said Sal Iannuzzi, chairman, chief executive officer and president of Monster Worldwide. "These agreements, combined with Monster's career Communities and our recently introduced 6Sense™ semantic search technology, will bring substantial new benefits for employers seeking more qualified candidates and job seekers searching for more relevant opportunities across a wider range of industries - globally."
The move will make Monster an even bigger jobs site and will allow Yahoo to exit the jobs business while still showing job opportunities (now from Monster) on yahoo.com.
11,000 jobs were lost in November. The unemployment rate also improved to 10%.
It was the 23rd consecutive month the economy has last jobs. However, CNN reports that the losses were much lower than analysts had been expecting.
U.S. payrolls slipped 11,000 jobs in the month, far below any of the job losses posted over the last 23 months. Economists surveyed by Briefing.com had forecast a loss of 125,000 jobs in November.
The October and September job loss estimates were also revised sharply lower, trimming previous job loss estimates by 159,000 between them.
The new reading put October job losses at 111,000 jobs, and September's loss estimate was cut to 139,000. Each of those new estimates would have been the smallest declines in more than a year.
CNN says the total number of hours worked by American workers actually increased by 0.6%. This is small but a positive sign. Unfortunately, some of this could be seasonal holiday retail hiring. It doesn't mean the economy is out of the woods and the layoffs have ceased.
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.
There are many working couples in today's world that have been hit very hard by the recession. Each spouse needs a job for the couple to earn enough income to pay the bills. If one or both loses a job they could face financial hardship. The Wall Street Journalreports the ugly recession has split up couples as one spouse is forced to take a job away from home. The WSJ article quotes a study from Challenger, Gray & Christmas that found 18.2% of 1,450 successful job seekers relocated for positions in the second quarter. This was a big jump from the 11.4% found in a survey from a year before.
Faced with a choice between the financial hardship of unemployment or a relocating for a job, more couples are going for a third option and choosing long-term separations. The issue is more common during this recession than in past downturns because of the prevalence of two-career couples. In 2008, 51.4% of married households had both spouses working, according to the U.S. Department of Labor.
"Someone finding employment in another city creates a bigger challenge for families than it did a generation ago," says Joseph Foudy, a professor of economics and management at New York University's Stern School of Business. "You can't assume that a spouse that follows another will find employment in this market."
It can also be expensive. Trips for the relocated spouse to visit can be costly and exhausting.
The Labor Department reported Thursday that U.S. employers cut 467,000 jobs in June. The unemployment rate climbed to 9.5 percent, which is nearly a 26-year high. Reuters reports that the jobs cuts were 100,000 more than Wall Street economists had been expecting. The economy has now lost 6.5 million jobs since the recession began on Decemeber 2007.
The AP says jobs cuts were widespread covering most sectors. Only education and health services added jobs.
Professional and business services slashed 118,000 jobs, more than double the 48,000 cut in May. Manufacturers cut 136,000, down from 156,000. Construction companies got rid of 79,000 jobs, up from 48,000 the previous month. Retailers eliminated 21,000, up from 17,600. Financial activities cut 27,000, following 30,000 in May. The government cut 52,000 jobs, up from 10,000 the previous month. Leisure and hospitality cut 18,000 jobs, erasing a gain of the same size in May.
One of the few industries adding jobs: education and health services, which added 34,000 positions last month and 47,000 in May.
The big June figures are a clear sign that the pace of layoffs is not slowing down. U.S. News provides a good Q&A on what this latest jobs report means here.
ADP: U.S. Companies Cut Payrolls by 473,000 in June
Bloombergreports that ADP Employer Services estimates that employers cut 473,000 jobs in June. This would be a sign that job losses are not slowing. Economists had been expecting a smaller figure.
The 473,000 drop in the ADP Employer Services gauge followed a revised reduction of 485,000 workers in May that was smaller than previously estimated.
Job losses may mount as the bankruptcies of General Motors Corp. and Chrysler LLC ripple through manufacturing. Increased firings threaten to further restrain consumer spending at a time when the world’s largest economy is showing signs of stabilizing.
"This is a weak number," Joel Prakken, chairman of Macroeconomic Advisers LLC, said on a conference call with reporters. "It's a pretty clear indication that, while we’re not shedding jobs as rapidly as the first part of the year, the labor market is still in a state of decline."
Bloomberg says tomorrow's jobs report from the Labor Department may show employers cut 363,000 jobs in June and that unemployment climbed to 9.6%. This would indicate deep losses and that employers are still firing and not hiring.
President Obama Says Unemployment Rate Will Reach 10%
Bloombergreports that President Obama acknowledged today that the unemployment rate is going to pass the 10% mark this year.
"You're starting to see the engines of the economy turn," Obama said today in an interview with Bloomberg Television at the White House. "It's going to take a long time -- we had a huge de-leveraging that took place."
Obama acknowledged that unemployment lines may keep growing despite government efforts to boost economic growth, saying he's confident an expansion will begin "shortly." His outlook mirrors the forecasts of private economists who predict a jobless rate of 10 percent -- a level unseen since 1983 -- by the final three months of the year.
"What you've seen is that the pace of job loss has slowed," the president said. "The economy is going to turn around, but as you know, jobs are a lagging indicator and we've got to produce 150,000 jobs every month just to keep pace, just to flatten this out."
Hopefully, President Obama is correct but there have not yet been signs of a turnaround and losing 345,000 jobs in a month - like we did in May - is not much of a slowdown.
Many economists welcomed the May jobs report as a positive sign even though the economy lost anouther 345,000 jobs and unemployment climbed to 9.4%. The optimism is only there because there were genuine fears the economy was in a terrifying free-fall.
Economists described the Labor Department's monthly jobs report, released Friday, as an unambiguous sign of improvement, yet also clear evidence of broadening national distress, as millions of households grapple with joblessness and lost working hours.
The fact that a report showing the highest unemployment rate in more than a quarter-century was embraced optimistically testified to the stark fears over the economy in recent months.
"The free fall that the job market was in does finally appear to be tapering off," said Stuart G. Hoffman, chief economist at PNC Financial Services Group in Pittsburgh. "It's the prelude to an economic and job recovery later this year."
VOA Newsreports that the unemployment rate is currently higher than the White House and analysts had expected and forecasted months ago.
The White House says America's employment picture is worse than the Obama administration had anticipated just a few months ago. The somber admission follows the latest jobless report showing the highest unemployment rate the United States has seen in more than 25 years.
U.S. unemployment jumped a half percent in May, to 9.4 percent prompting this comment by Austan Goolsbee, a member of President Barack Obama's Council of Economic Advisors:
"The economy clearly has gotten substantially worse from the initial predictions that were being made, not just by the White House, but by all of the private sector," said Austan Goolsbee.
The high unemployment rate is likely why President Obama announced a new plan (PDF file) to create jobs today. The Christian Science Monitornotes that the plan has little room for error.
Yet the administration is still in rescue mode. On Monday, it formally announced its plan to step up its recovery efforts and create 600,000 jobs, including 125,000 summer jobs for youth.
This may be a good thing. A recession that's moderating is still a recession. People are still losing their jobs at a faster rate than they’re finding new ones. Supporters of continued stimulus are those who see no recovery this year – or such a weak one that it will still feel like recession.
But the economy moves so fast – and government stimulus moves so slowly – that the administration risks falling behind the curve.
Several experts quoted here in a U.S. News article say they expect job losses to continue to moderate but the unemployment rate is still expected to come closer to or exceed 10%.
Job losses may moderate but it could be difficult to estimate the fallout from the GM and Chrysler bankruptcies. Retail sales in May were also weak and another weak month or two could result in more layoffs in the retail industry. There are many unknowns we have to yet to face in this recession.
Monster Worldwide, Inc. has acquired the assets of 