The U.S. economy lost 63,000 jobs in February 2008, the U.S. Labor Department announced Friday, in the most telling sign to-date that the nation's economy has fallen into a recession.Economists surveyed by Bloomberg News had expected the nation to add 25,000 jobs in February 2008.
Further, the U.S. economy lost a revised 28,000 jobs in January 2008. In addition, hiring continues to trend lower: in the past four months, non-farm payrolls have increased by 28,000 per month, down from 80,000 a year ago.
Economist David H. Wang said the February 2008 jobs report "provides further evidence of a steadily weakening job market, which almost always signals a recession is up ahead, if not already underway."
Meanwhile, the nation's unemployment rate dipped to 4.8% in February 2008, down from 4.9% in January 2008.
Economists surveyed by Bloomberg News had expected the nation's unemployment to total 5.0% in February 2008.
The dip in the unemployment rate amid a monthly job loss is not an anomaly, economists say, because the U.S.'s labor force participation rate fell in February 2008 to 65.9% from 66.1% in January 2008. The U.S. Government does not count as unemployed people who are not considered to be actively looking for work. Therefore, while jobs declined in February 2008, the number of unemployed adults looking for worked dropped more that more, hence the decline in the unemployment rate.
In the February 2008 payroll report, private-sector payrolls plunged by 101,000. Sector job losers included: manufacturing, down 52,000 jobs; construction, down 39,000, retail, down 34,000, and financial services, down 12,000. Sector job gains included: government, up 38,000; health and education, up 30,000; and hospitality, up 21,000.
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Reader Comments (Page 1 of 1)
3-07-2008 @ 11:41AM
william lindblad said...
This is just the start.
3-07-2008 @ 12:47PM
Daryl said...
It appears like the "Perfect Financial Storm".. A greatly devalued dollar. The housing sector on it's head. Commodity pricing through the roof. And, last but not least a Credit Crunch that we have never seen before. We have dug ourselves a large hole in the name of "Greed".. So, how, now do we get out of it??? Alot of sacrifice and alot of soul searching!!!!
3-07-2008 @ 2:18PM
PIPE AL said...
DOES ANYONE KNOW WHAT THEY ARE DOING?
ECONOMISTS EXPERTS ON JOBS, EXPECT TO INCREASE BY 25000, TURNS OUT DOWN 63000.
WE MAY OR MAY NOT BE IN A RECESSION? ONLY WARREN BUFFETT SEEMS TO KNOW, THE GOVERNMENT SHOULD HIRE HIM.
3-07-2008 @ 2:54PM
John Kuchta said...
The only solution to avoid a recession / depression that I see is adoption of the FAIR TAX!
American consumers and investors have a veil over their eyes right now that could be lifted by abolishing the IRS and adopting the FAIR TAX. Think of being able to keep your salary, rents, interest and dividends in exchange for paying a simple 20% tax on NEW GOODS ONLY. Buy a new car and you pay 20%. Buy a used car and pay nothing. Same with homes, motorcycles, appliances, you name it. Our economy would take off like a rocket with tremendous growth in investment and consumer spending and a surge in foreign investment and legal immigration. Even the illegals become taxpayers as well as limosine liberals who have untaxed trusts. If you can get your US Congressman's attention, tell him this is the way to go!