Here's a great surprise: Job losses slowed dramatically in May.
Let's look at the numbers:
- Non-farm payrolls dropped 345,000. Economists had expected a drop of 525,000.
- The economy has lost 6 million jobs since December 2007.
- The unemployment rate jumped to 9.4%, the highest since August 1983.
- Economists expect to see 10% unemployment soon.
- Federal Reserve Chairman, Bernanke, said that "the labor market tends to lag the business cycle" and even as the economy recovers unemployment will remain high.
- The rate of underemployed workers stands at 16.4% up from 15.8% in April.
- The Institute for Supply Management index increased in May from April.
- Average hourly earnings rose 2 cents to $18.54, up only 3.1% from a year ago.
- Goods-producing industries shed 225,000 jobs.
- Manufacturing cut 156,000 jobs for a total of 1.8 million since the recession began.
- The service sector cut 120,000 jobs.
- Business and professional services shed 50,000 jobs.
- The financial sector dropped 30,000 jobs.
- Construction was down 59,000, the smallest decline since September.
- Temp unemployment fell by only 6,500.
- The government cut 7,000 jobs.
The only bright spot was eduction and health care, which added 44,000 jobs.
So there you have it. The report is better than April, and better than economists had expected. So while it does not alleviate the misery of those unemployed maybe we are reaching a trough in this business cycle.
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Reader Comments (Page 1 of 1)
6-05-2009 @ 11:16AM
Mike said...
Still, this is by no means "good news."
6-05-2009 @ 11:33AM
MICHAELKRIGSTEIN said...
BOGUS.
HOW MANY JOBS DID THE GOVT SAY WAS CREATED BY THE BIRTH/DEATH RATE STATISTIC THAT IT USES TO CALCULATE JOB CREATION?
DOES ANYONE KNOW HOW MANY JOBS THE GOVT THINK WERE CREATED TO OFFSET THE FACTUAL LOSSES?
6-05-2009 @ 1:55PM
mandmjlrscvca said...
Pig crap Obummer will not help the economy and that is already obvious. There is a simple way to re employ all who have lost their jobs. Maybe not one they might want for the time. But the world economy would totally turn around with two simple moves in regards to manufacturing, housing,.......everything.....the greatest obsticle is to step on some big peoples toes and legislate the change. If the legislation was done as I would propose with documentation to fully support it 100% effective......it could be done.......but the problem is this.........getting the right people to listen and be open to the logic and reality of it. I have considered writing a book, but that is too slow........I have considered contacting some politicians, but they are so corrupt and into power and control, that they really have no interest in turning the economy around. They want power, money and fame.......yet can't pull their heads out of their respective asses to see the light blinding them.... Oh well........and the beat goes on. and No.....I won't expose it here......... no one with the brains to help or listen........ that is a statement of lack of confidence. There are plenty smart or intelligent enough........they just don't have the clout necessary to do this.... Trust that there really is a simple solution......so simple it is ignored by the people in power.