The Great Debate UK

Worst is over for U.S. job losses


Kurt Karl-Kurt Karl is chief U.S. economist for Swiss Re. The opinions expressed are his own.-

Ongoing job losses pose a severe threat to the nascent U.S. recovery because they weaken consumers confidence and their ability to spend.

In September, another 263,000 jobs were lost in the U.S., worse than August’s 201,000 job drop, though much better than the 741,000 jobs lost in January of this year – the worst month is this cycle.

Employment is down 4.2 percent compared to a year ago. Hours worked for nonfarm productive workers were down 1.8 percent, while their average hourly earnings were up only 2.5 percent.