Unemployment Rises In August; 263,000 Jobs Lost

Unemployment Rises In August; 263,000 Jobs Lost


Numbers just came out today and in July the number was 247,000. This is obviously disappointing because the numbers had been consistently dropping since the beginning of the year and this uptick was not expected.

More from Reuters:

Analysts polled by Reuters had expected non-farm payrolls to drop 180,000 in September and the unemployment rate to rise to 9.8 percent from 9.7 percent the prior month. The poll was conducted before reports, including regional manufacturing surveys, showed some deterioration in employment measures.

The government revised job losses for July and August to show 13,000 more jobs lost than previously reported. Preliminary annual benchmark revisions, released together with September’s employment report showed that total non-farm payroll employment for March would have to be revised down about 824,000. […]

Since the start of the recession in December 2007, the number of unemployed people has risen by 7.6 million to 15.1 million, the department said. While the decline in payrolls has moderated from early this year, companies are still not hiring on a wide scale, likely waiting for a signal that the economic recovery is sustainable.

This can kind of be a chicken and an egg problem. Companies won’t start hiring until they see signs of recovery, but recovery won’t happen until companies start hiring. Yikes!

That’s where the solvency of the banking industry comes into play, and while we have seen some of the TARP money paid back, money is still hard to come by. My continued belief is employment is always a lagging indicator of economic recovery and that we’ll start to see job growth by Q1 2010.

Tick tock…

  • the Word

    And the DOW for the quarter is at its best gains since 1998. Goes to show you that one number does not show the total picture.

  • http://itsthe21stcenturystupid.wordpress.com/ Jim S

    I think you’re probably too optimistic, Justin. Can you say jobless recovery? How many years now has Wall Street rewarded businesses for mass firings of people? Management doesn’t care. I was listening to an interview with an executive this afternoon on NPR and he was saying that they’re getting the same amount of work done and he discourages anyone who comes to him saying that they need to hire people even though his business isn’t really hurting that much now. There was no mention of how his current employees are dealing with the increased workload. From what I was hearing I really doubt he cares.

  • jonny

    thanks for the post

  • Ray H

    Yeah, you’re being way to optimistic. It’s not just the waiting to see a real recovery starting that will hold back business growth and the employment that will come with it. Too much going on on the legislative level. Health care reform should be dealt with (one way or the other) by the end of the year but there is still crap and tax (and card check?) still looming for next year. This administration is doing its best to pass legislation that is very anti business. Just more liberal shortsightedness; how is business/employment going to grow with the anti business attitude of the libs forcing business growth to be somewhere other than America by making it too expensive to do it here?