Jobless rate 10.2% and climbing
Outlook is likely to worsen well into next year, but losses are slowing
WASHINGTON — As bad as Friday's jobs report was, showing October's unemployment rate jumping sharply to 10.2 percent, the outlook is likely to worsen for American workers well into next year. Economists expect the jobless rate to keep climbing, perhaps above 11 percent, as employers produce more with fewer workers and shy away from hiring.
The nation's unemployment rate leapt by a larger-than-expected four-tenths of a percentage point in October to its highest level since April 1983, even as the pace of job losses slowed sharply, the Labor Department said Friday.
Employers shed 190,000 jobs in October, the slowest pace nearly since the devastating recession began in December 2007. The Bureau of Labor Statistics also revised its August and September unemployment numbers to reflect that 91,000 fewer jobs were lost over those two months than first reported.
That trend is positive. It shows that the torrid pace of job losses in the first half of the year has slowed dramatically. That supports the recent report that the U.S. economy grew at a 3.5 percent annual rate from July through September.
There are other positive signs. The professional and business services sector added 18,000 jobs in October. Temporary employment, which usually precedes a return to broader hiring, was up by almost 34,000 last month, the third straight month of gains.
Yet the surge in the unemployment rate overshadowed all else.
"History tells us that job growth always lags behind economic growth," President Barack Obama cautioned in a statement from the White House Rose Garden, shortly after he signed a new $24 billion economic stimulus bill into law. The measure provides tax incentives to homebuyers and extends unemployment benefits for the longtime unemployed. The House of Representatives passed the measure 403-12 Thursday in a rare bipartisan vote, a day after the Senate passed it unanimously.
Obama called the October jobless report "a sobering number that underscores the economic challenges that lie ahead. ... I won't let up until the Americans who want to find work can find work and until all Americans can earn enough to raise their families and keep their businesses open."
When discouraged workers and underemployed ones are factored in, a more broadly defined unemployment rate stands at 17.5 percent. Some 35 percent of the jobless, about 5.6 million Americans, have been unable to find work for more than six months.
Many economists had expected unemployment to hit 10 percent this year, but few thought the rate would reach that by October. After Friday's sharp jump, they began revising job forecasts down.
Recent comments
Graft to the socialists is killing the economy. More money to...
Atlas | Nov. 8, 2009 at 12:19 p.m.
There would be several million jobs available if Americans would stop...
Not Guilty | Nov. 7, 2009 at 7:11 p.m.
unemployment is 10.2% but slowing?
good news? | Nov. 7, 2009 at 5:16 p.m.
- Northeast scallopers decry cuts 11:29 a.m.
- $ needed to ease U.N. climate deal 11:17 a.m.
- Sen.: Troop hike must help forces 11:12 a.m.
- 'New Moon' keeps top box office spot 11:05 a.m.
- 4 police officers shot dead in Wash. 11:00 a.m.
- Filipino clan claims innocence 10:51 a.m.
- 'Saddam Channel' hits Iraq TV 10:36 a.m.
- Russia sends pact draft to leaders 10:30 a.m.
- Nat'l parks seek share of profits 10:24 a.m.
- UNLV refutes comeback 10:23 a.m.
- Hall mouths off about hate of Utah
- Cougars beat Utes in overtime
- BYU is champion of the state
- Cave to be sealed with body inside
- Credit Coug defense for win
- Cougar defense rose to occasion
- Field goals, penalties doomed Utes
- Jones' joy for life remembered
- Banged up Jazz get best of Blazers
- Man dies in dirt bike crash
- Cougars beat Utes in overtime
423 - Hall mouths off about hate of Utah
310 - Thunder rolls by Jazz
136 - Cave to be sealed with body inside
115 - Man trapped in Nutty Putty cave dies
115 - Editorial: Poor welcome for Palin
113 - Rivalry Week is highly profane
89 - Hall's legacy measured today
76 - Y. focused on 10-win season
73 - Letters: C02 causes warming
72
If you're shopping online for gifts, take care. While there are some...
Did I throw beer on you? Did I spit on you? Am I classless? It must be...
Dick - the receivers were wide open on almost every long pass with one to two...
How could Utah have won 5 of the last 7 when BYU has won 3 of the last 4?...
Whether you're a Ute fan or a BYU fan (and I am a Cougar fan), Hall's...
NO...those open receivers where missed because of the footsteps wynn heard..
Take a lesson Max from your teammate Jan Jorgensen who chased Bryan Johnson...
Alli and Mason are both talented actors and great kids. I can't wait to see...
The defenses were stellar for both teams, but BYU's defense outperformed...
No doubt Max Hall's comments after the game were inapropriate. I am ashamed...
Both teams and unsportmslike calls and they could have called more on BYU...


