Equally troubling, September's job loss was revised to 284,000 from the previously announced 159,000.
Further, the unemployment rate surged to 6.5% in October from 6.1% September, the Labor Department said.
Also, an alternate gauge of unemployment, the augmented rate, which includes discouraged workers, rose to 11.7% October from 11% in September. The conventional U.S Labor Department unemployment rate does not include discouraged workers because they are not technically "seeking work." Still, some economists argue this is a more-accurate gauge of employment, contending that these discouraged workers would accept jobs if the positions were available.
Economists surveyed by Bloomberg News had expected the U.S. economy to shed 200,000 jobs in October and the unemployment rate to increase to 6.3%. October was the U.S. economy's 11th straight monthly job loss.
Further, the U.S. economy has now lost about 1.18 million jobs this year and more than 650,000 in the last three months.
Economist Peter Dawson told BloggingStocks Friday, the October report represents another incontrovertible negative data point for the U.S. economy.
"The job market continues to worsen. We have employers cutting back on slackening demand, and those facts, combined with tough conditions in housing, manufacturing, the auto sector, and financial services shows an employment picture in very rough shape," Dawson said.
Further, Dawson said the job loss trend and unemployment rate "build the case for a substantial fiscal stimulus package, perhaps a fiscal stimulus package in two stages."
"We can't continue to incur job losses of this magnitude, as rising unemployment will put more pressure on state-level budgets, and further reduce consumer demand, leading to an even worse negative feedback loop into the economy," Dawson said. "We have to find a growth catalyst and if the only option is fiscal stimulus, it should be implemented, and the sooner the better."
In October, the service sector lost 108,000 jobs; construction, 49,000; retail, 38,000, financial services, 24,000.
Economic Analysis: As economist Dawson noted, the time for Congress to pass another fiscal stimulus package is now.
Score a Great Deal During Memorial Day Sales -- Savings Experiment
5 Signs That Your Investment Adviser Is Scamming You


Reader Comments (Page 1 of 1)
11-07-2008 @ 9:09AM
Virgil Bierschwale said...
I wrote an article this morning at http://www.KeepAmericaAtWork.com titled "A flaw in our economists theories"
A stimulus package will not do anything, especially for the people that need it the most.
This article tells exactly what will work and why it will work on a global basis.
We have nobody but ourselves to blame and we also are responsible for fixing the problem and the solution is to bring our jobs home.
It really is as simple as that.
On another subject, I need the names of the CEO's and the Companies that are sending our jobs offshore and you can send them and links to me at vbiersch@ktc.com as we need to restore American's confidence and the way to do this is by focusing our attention on these companies and CEO's that are destroying America and its ability to survive.
Virgil
http://www.KeepAmericaAtWork.com
11-07-2008 @ 10:37AM
Bob said...
Why is it that some believe that the government should be handing out more money in the form of stimulus checks. The thought of getting another Stimuls Check has now degraded to the same level as people holding their hands out for a FEMA check each & every time a hurricane comes ashore in the US. There was no such thing as a FEMA check when Florida got pounded by a series of hurricanes, but now has to some become an expectation.
This country has finally been drawn down to a level which had not ever been contemplated. Give an inch, and people set their expectations on free government handouts every time something goes wrong !!
11-07-2008 @ 11:17AM
Jim Campbell said...
The only way to not think about money is to have a great deal of it. To get something you've never had, you must be willing to do something you've never done. Unless you believe you will not understand. www.LikeSoup.com
11-07-2008 @ 11:24AM
erik said...
Bob..........
Get a grib, the stimulus package was created by the Bush Administraton, I guess that is your party.....
11-07-2008 @ 11:23AM
John Preston said...
Fiscal stimulas yes, but NOT in the form of sending more money to consumers who are already in debt for overextending.
Fiscal stimulas for public infrastructure, education, new energy tech, green tech.....YES.
11-07-2008 @ 11:23AM
nancy said...
has anyone noticed that the stock market was down big the two days after the election? guess the socialist press did not attribute it to obama getting elected. i did!!!!!!!!!! people who did not vote for him are very very disturbed that he was elected, and i am assuming that many of the investors on wall street are disturbed too and cannot believe what this country did.
11-07-2008 @ 11:28AM
Fred said...
Japan started their bailout program in 1989, after the stock market crushed, followed by a Real Estate bubble burst. They still are handing out "Rescue" checks like candy at a kindergarden. But, the economy continues to tank and the stock market suffered its worst decline about a week ago. Is Japan a Deja Vu for the United States? Count on it.
11-07-2008 @ 6:08PM
jackie said...
I live in Northeast Texas and I see now hiring signs everywhere, yet we keep seeing these numbers. Personally I think the problem is that the minimum wage is to low for the cost of living. If you don't work you stand to receive more FREE money then if you do. I have a friend who makes 20,000.00 per year and has a child. She had to new of a car so they said they would give her 10.00 per month - WTH - It is almost as if they are punishing you for working. I think they need to insist you have a job if possible and subsidize your income with some help, not just a hand out. What are everyones thoughts on that?
11-07-2008 @ 9:13PM
Angela said...
I am one of the many who are unemployed ...I live in an area with high unemployment ....I have two small children & it is $250 a week for daycare I worked for a company for 10 years and believe me unemployment does not even touch what I made. I did make a choice to go back to school to improve my skills in a field (knock on wood) that we will always need. I do hope that they pass this package I for one could use the help. I have never lived off the system before but I have no where else to turn. Something that could or should be looked into is a package that you can pay into maybe a few dollars a week that you can use for the purpose of being laid off . I did have a 401k but I've pretty much used it up to pay some of my higher bills off in case this unemployment became long term which it did .
11-07-2008 @ 9:26PM
angela said...
Oh by the way forgot to mention I have put probably 300 resumes in since my unemployment began I have even been looking at other areas to move to but at this point I would not be able to move because the money is so tight so if anyone believes that this is what I really wanted you are wrong I would choose to work any day & be able to give my children a new pair of shoes a dinner at even McDonalds at this point I dont understand how I was so far up & came so far down so fast.
11-07-2008 @ 9:41PM
Rhonda said...
I am one that has lost a job due to my plant closing. I have never received unemployment until now. I am not one that looks for a hand out but if they can bail out the banks they can help those of us that have a history of work. Please tell me what they thought giving the money to the banks would do. They are not going to help refinance homes for people that lost their jobs. The big thing was to get the banks to feel confident to loan money. Who thought this up?? What happened to being analytical and thinking all the way through something before you do it. It is easy for someone to agree or disagree until they are put in our shoes. Some rich people keep getting richer due to incentives and the working men and women are the ones paying the taxes, helping the poor, paying extra taxes to help to the high paid executives get their bonus. I wonder how many people got a bonus when the government handed over money to the banks?? Going back and getting more education would be great but due to making more than allowed I do not qualify for a grant and being unemployed I can not get the money for school. Something needs to be done, I don't have the answer but the Lord will help us one way or the other.
11-07-2008 @ 9:55PM
Rhonda said...
By the way, Did the ones complaining about the government doing stimulas checks turn theirs down? Does the thought of not all are overextended but the economy driving cutbacks and higher prices has created the situation in which those affected had to make a choice to feed and get clothes for their families. I wonder if you all are out of jobs and know what some of us are feeling before you assume your opinion is correct. I pray that you never are in my shoes. As I said before, I do not know what will fix this but the thought of equality and everyone paying their share of taxes, getting people off government assistance programs, holding executives responsible for their actions, addressing the salarys of our officials no longer in office, paying attention to the united states first before sending money and jobs somewhere else, and working together as God intended would surely help us some.
11-16-2008 @ 11:00AM
A BURCH said...
I am a Sr. citizen on S.S. I earned this after working and paying into it for over 40 years. I have children who are working and have small children this said WE the people could use Stimulus NOW. We have to help our children with things for the grands as they do not make enough do not mind this But if the Govt. can help out BIG private companys whos CEOS make BIG monies why can they not pass a Stimulus bill NOW TO HELP WORKING PEOPLE have a decent holiday season.????????? i promise we would spend it in a Lot of stores. Children do not understand Why they cannot get presents at the holiday season, LAME DUCK ADMINISTRATION PLEASE listen this. I voted REP. alwas have May NOT ever again if this not HANDLED NOW. DEM. have promised one in Jan. o.k. will take but we need it now.
11-20-2008 @ 5:26AM
beth said...
The economy is so bad and everyone is losing there apartments and homes. for the people that had extended unemployment and it was used up by the end of september what are we suppose to do. keep hearing they are going to extend it but when. and yes another rebate check stimulus would be nice. because the middle class is now considered the poor middle class.
11-23-2008 @ 5:25PM
Steve said...
The stimulus plan needs to be about creating jobs, not handing checks out to everyone. The Bush administration stimulus checks did little to help the economy, little to help people unemployed, and did a lot to drive up the debt.
I am not an Obama supporter but he is on the right track. A massive federal jobs program needs to be created to hire people to do useful work repairing our national infrustructure. People need jobs not $500 dollar checks.
I am left scratching my head as to why the congress wants to wait 2 months for Obama to sign the plan into law when Bush could sign it and get the economy moving again NOW. Congress needs to stop playing politics with EVERYTHING.
Without a massive (1-2 TRILLION dollars) stimulus plan very soon I am afraid we may be rapidly moving into Great Depression 2.
Great Depression 2 is bad for EVERYONE.
Dems need to stop messing around and pass a plan NOW stop waiting for Obama.
12-22-2008 @ 7:18PM
Omahan said...
Trust me economy starts in every home before we finger point at everyone. Our culture has been always one of the most vain, purposeless and foolish. Our lifestyle has been lavish beyond means. We taught our children no lasting values. We depended on a flood of immigrants to do our jobs. We have allowed traitors and terrorists to thrive on our land. We were deluded by the myth of a "flat world" and sent away most of the jobs and we are indeed flattened. We have ourselves created all this mess and it is too late to regret.