Continuing Job Losses Prove that Recovery Has Yet to Gain Traction

The Labor Department on Friday reported that the unemployment rate in the U.S. hit its highest level since March of 1983, rising from 9.8% in September to 10.2% in October, as nonfarm payrolls saw a net decline of 190,000.
During the early 1980s recessions the jobless rate peaked at 10.8%, a level that looks increasingly likely to be attained again sometime in the months ahead given the continuing reluctance of employers to hire.

The U-6 under-employment rate, which includes discouraged workers and those settling for part-time work instead of full-time work, rose to 17.5%, the highest level since this data series began 15 years ago.

Nonfarm payrolls saw declines in the usual areas - the construction, manufacturing and trade categories all with net losses of over 60,000 in October.

Often considered a good barometer of the health of the economy because it provides an indication of how willing consumers are to spend, the leisure and hospitality category posted a net decline of 37,000 jobs, its third straight monthly decline after a small improvement in July.
Professional and business services payrolls increased by 18,000 due to a surge of 35,000 new temporary workers, as other subcategories such as architecture and engineering showed job losses. While hiring of temporary help is a good sign for the economy, it is only a modest gain compared to the other declines.

Naturally, hiring continued in education and health services, what has been the only consistent source of job creation for many years now, as educational services had a net gain of 11,000 positions and health services added 34,000.

While it is clear that the worst of the job losses are now behind us, the fact that layoffs are still occurring at a much faster pace than workers are being hired back (i.e., pushing the unemployment rate higher) should be disconcerting to any of those thinking that the economic "recovery" is gaining significant traction.

Comments

[drewriders:]

I would be willing to bet Warren Buffett knows more about the market than you do. DJIA will not go to 5000 unless we see a million jobs lost in a month. Ain't gonna happen.


On Nov 06 12:53 PM 10000ozCOCAINE wrote:

> Why Warren Buffett pays $34 billion for BNI instead max. $20 billion
> when market DJIA was at 6500?
> Why BRK depends on Goldman Sachs bankers?
> Why Buffett is buying stuff at the peak of the market instead of
> waiting to buy cheaper in a very short time ?
> Does he think DJIA at 10000 is "cheap" ?
> He buys BNI at the top to calm the matket panic and "make you buy
> too".
> Why BRK is not selling all their stuff, when W. Buffett knows very
> clear that DJIA will be 5000 soon and will bottom only at 2000 that
> will hit him too?
> Find out in WARREN BUFFET? link
> alturl.com/dzgp

Nov 06 12:58 PM

[j-dub:]

"Continuing Job Losses Prove that Recovery Has Yet to Gain Traction."

What are you talking about?

Since I lost my job earlier this year, I am able to stay home and watch CNBC all day, everyday. And I've learned two very valuable pieces of information from watching day in and day out:
1)Everything is fine.
2) The economy is just a bit behind schedule concerning employment. That'll solve itself. (see #1)

Nov 06 01:11 PM

[User 353732:]

The new definition of a recovery, according to the US Regime, is that WashDc-Wall stole more from the Middle Class this month than last month. A boom is when the Middle class ceases to exist.
A recession is when WashDc-Wall St theft is less this month than last month. A depression is when the Middle class refuses to be plundered and pillaged any more .

The recovery is gaining traction impressively and the US Regime is now confident that the bleak days of constitutional Govt, personal and property rights and a independent press are finally behind us. There are even whispers of a boom but modesty prevents the US Regime from talking about the impending boom at this early stage.

As the recovery accelerates, the Regime will accept congratulations and credit for the nascent boom from its soul brothers in Russia, Venezuela and Iran. The North Koreans are less easily impressed and will wait for actual proof an enduring boom before sending fraternal greetings and tokens of admiration.

Nov 06 01:27 PM

[Mad Hedge F...:]

WDG Ouch! Another 190,000 jobs went down the crapper in October, taking unemployment rate to a new 27 year high of 10.2%. Add in discouraged job seekers, and that puts the jobless rate at gut churning 17.5%, and over 20% in California. Along with yesterday’s stunning, gob smacking 9.5% increase in Q3 productivity, the figures point a giant arc spotlight on what is really happening in the economy. Companies are still firing workers en mass to boost profits. After getting blood from a stone they are returning to the same rock for one more drop. I guess if I fire myself, the profitability of my business would go through the roof too, and maybe even my stock would rise. At least then I would then be rid of my oldest, most expensive but least productive employee, who is the worst to get along with, max’s out his sick and vacation days, and wears the same clothes to work every day, even when there lipstick on the collar. But then who would write this daily letter? Maybe Cecelia, my cleaning lady, would do it. She’s cheap. This explains why when you go into Office Depot these days, there is only one minimum waged employee standing at the cash register, the hours on the phone I have to wait to get technical support from Dell, and the endless unmovable lines at Citibank. America’s service economy has become all about denying service to customers. The scary thing is, with companies firing their way to prosperity, what happens when we get another dip? My theory is that the US has entered an era of chronically high employment that is never going away, no matter what the government does. Goodbye USA, hello Germany!

Nov 06 01:30 PM

[j-dub:]

"The new definition of a recovery, according to the US Regime, is that WashDc-Wall stole more from the Middle Class this month than last month."

Simply classic


On Nov 06 01:27 PM User 353732 wrote:

> The new definition of a recovery, according to the US Regime, is
> that WashDc-Wall stole more from the Middle Class this month than
> last month. A boom is when the Middle class ceases to exist.
> A recession is when WashDc-Wall St theft is less this month than
> last month. A depression is when the Middle class refuses to be plundered
> and pillaged any more .
>
> The recovery is gaining traction impressively and the US Regime is
> now confident that the bleak days of constitutional Govt, personal
> and property rights and a independent press are finally behind us.
> There are even whispers of a boom but modesty prevents the US Regime
> from talking about the impending boom at this early stage.
>
> As the recovery accelerates, the Regime will accept congratulations
> and credit for the nascent boom from its soul brothers in Russia,
> Venezuela and Iran. The North Koreans are less easily impressed and
> will wait for actual proof an enduring boom before sending fraternal
> greetings and tokens of admiration.

Nov 06 02:58 PM