Friday, December 3, 2010

UNEMPLOYMENT RISES TO 9.8%

Unemployment has risen back up to 9.8% and Reuters has the story. 

U.S. employment increased far less than expected in November and the jobless rate jumped to a seven-month high of 9.8 percent, dampening hopes for a self-sustaining economic recovery.
Nonfarm payrolls rose 39,000, with private hiring gaining only 50,000, the Labor Department said. However, overall employment for September and October was revised to show 38,000 more jobs than previously estimated.
Economists had expected payrolls to increase 140,000 last month and the unemployment rate to be unchanged at 9.6 percent.

HotAir.com Ed Morrissey thoughts on this. 

Department stores lost 9,000 jobs, and furniture and home furnishings stores lost 5,000.  The latter may be part of the fallout from poor performance in home sales as well as weakness in retail sales. Manufacturing dropped 13,000 jobs.  Wage growth was also flat in November across the board.
The increase in the overall rate appears linked directly to job losses rather than a return to the workforce of discouraged workers.  Those numbers have actually increased slightly year on year.  When they begin entering the workforce again, the overall rate will rise even higher, even if the overall job creation numbers improve.  That isn’t what happened in November.
Since the unemployment rate has gone up we must haul out our drunk and depressed Stromtrooper.

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