James Pethokoukis

Politics and policy from inside Washington

September jobs report: -263,000, unemployment at 9.8 percent

October 2, 2009

The silver linings here are tough to find, at least according to this summary from IHS Global:

The September employment report signaled a painfully slow path to stabilization in the private employment market, and sharper declines in government jobs. It also suggested that the unemployment rate is likely to hit 10% by the turn of the year.

The leading indicators in the report were not promising. The workweek fell, and is now back at its June low. And temporary help jobs – while declining only fractionally – still haven’t moved into positive territory.

There was nothing to support the view that the economy will be adding jobs before the end of the year. And nothing to support the view that the consumer can sustain the spending increases that we saw in August – employment and hours worked were down, and hourly earnings only inched higher, implying that wage and salary incomes fell.

State and local governments have now shed 160,000 jobs over the past four months as budget cuts bite. This month, 29,000 of those losses came in education as the school year began. The education sector as a whole lost 46,000 jobs this month.

The economy has now lost 7.2 million jobs since the recession began – but the story is even worse than that. The BLS now tells us that it expects to revise down March 2009 employment by 824,000, based on a full employment count from unemployment insurance statistics. That implies that the total loss is now 8.0 million.

Comments

Congratulations America, you voted for a president who is TRYING to destroy jobs, not create them, to “fundamentally change” the USA from capitalism into a socialist country. That was the “Hope and Change” you voted for.

Wake up and get him and the “progressives” out of office while the USA is still recognizable.

Posted by R.M. Edaps | Report as abusive
 

R.M. Edaps is a fool.

Posted by J whitt | Report as abusive
 

I think 9,8% is an incorrect number. I’d put it at around 20% and rising. When you control the spreadsheet I suppose you can put in whatever you want.

Posted by jason | Report as abusive
 

To the first comment, this would have happened no matter who was in office. Both the Republicans and Democrats have shown that they are incapable of solving anything.

So 10% it will be, just around when I predicted it, end of year. I bet you wish you hadn’t passed on this IHS. Your loss.

Posted by Greg | Report as abusive
 

I think the “early adoption” of 21st energy and health care reform is capable of putting the job market on a solid ground. As a major driver, IT industry stalled and stranded in a game industry for the lack of 21st energy policy over the stretch of two wars needs to evolve into the all but indefinite energy, medical, and academic industry where the investors are eagerly waiting for policy-makers to act now, which I guess is why the far-reaching and long overdue health care and 21st energy bill have come into focus.

Posted by hsr0601 | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •