Sorry to say that the jobs report for October is bleak. According to ADP National Employment, 203,000 jobs were lost.
Since the recession started, U.S. job losses have risen from 7.6 million to 15 million.
Here are the numbers by sectors:
- The service sector lost 86,000 jobs.
- The goods-producing sector lost 117,000 jobs.
- Construction was down by 51,000.
- Medium and small businesses lost 75,000 jobs.
- Large businesses shed 53,000 jobs.
None of this is encouraging, even though we've heard that the recession has ended. The bloodletting still continues at a fairly rapid clip.
On Friday, we get the Labor Department's numbers. Bloomberg News estimates that the number will come in at 175,000 jobs lost.
In a contra movement, the Institute of Supply Management labor survey rose to 53.1, a jump of 6.9%. Any number above 50% indicates expansion.
So then, where are we? Weakness persists in the job market. Until jobs return, the economy will remain stagnant. Consumers can't spend if they have no money.
Our government must initiate an all-out press for job creation. The Federal Reserve pledged $11.2 trillion dollars to bail out the bankers, but nothing has been done for the unemployed. Let's stop all this unnecessary spending on the financial sector and shift the remainder of the $11.2 trillion to job creation. The bankers took the Fed's money and are now paying themselves record bonuses. Had the Fed simply focused on the economy instead of giving trillions to the bankers, the economy would be solid and growing.
Do you believe that the Fed should do something about unemployment?
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Reader Comments (Page 1 of 1)
11-04-2009 @ 1:27PM
RRM said...
"Consumers can't spend if they have no money."
... what's the real net effect of a 15%-20% unemployment rate? How much of the countries resources are expended to support this level of unemployment?
11-10-2009 @ 9:02AM
uscyeahright said...
nahhh nahhhh nahhhh-
600,000 jobs were CREATED OR SAVED!!!!!!! Get me a barfbag.