Unemployment hits 9.8%

[JohnSmith2007 353]

Economy Added Fewer Jobs Than Expected in November

By LUCA DILEO And JEFFREY SPARSHOTT

WASHINGTON—The U.S. economy added fewer jobs than expected in November and the unemployment rate rose to its highest level since April, indicating the economic recovery remains weak 17 months after the recession ended.

The U.S. economy added far fewer jobs than expected in November while the unemployment rate rose to 9.8%, the highest since April, underlining continued weakness in the labor market. Nonfarm payrolls rose by 39,000 last month as private-sector employers added only 50,000 jobs, the Labor Department said Friday. Economists surveyed by Dow Jones Newswires had forecast payrolls would rise by 144,000 and that the jobless rate would remain unchanged at 9.6%.

The unemployment rate, which is obtained from a separate household survey, unexpectedly rose to 9.8% last month. More than 15 million people seeking work can't get a job.

The October payrolls number was revised up slightly to show a 172,000 increase from a previous estimate of 151,000.

The weaker-than-expected data caused the dollar to weaken against the yen and euro and other major currencies. Treasurys rallied on the report.

The U.S. unemployment rate has now been above 9% since May 2009, or 19 months. That matches the longest stretch at such an elevated level since World War II. In the deep recession of the early 1980s, the jobless rate crept to 9% in March 1982 and remained above that mark until September 1983.

In the private sector, accounting for about 70% of the work force, employers added 50,000 jobs in November after adding 160,000 in October.

The November breakdown showed temporary-help services and health care continued to add jobs, while employment fell in retail. The manufacturing sector, which had been the big creator of jobs at the start of the recovery, shed 13,000 jobs, the fourth decline in a row.

Total government employment, meantime, fell by 11,000, hurt by losses in municipal jobs. Local governments have been grappling with tight budgets.

Fed Chairman Ben Bernanke told a panel of business executives this week that job creation is still the most significant problem the economy faces.

The poor job growth, together with low inflation, led the Fed to take the controversial decision to buy $600 billion in U.S. Treasury notes through June in an effort to spur growth. The central bank has already bought $1.75 trillion in government and mortgage bonds to fight the financial crisis, and some senior politicians worry the Fed won't be able to control inflation once economic growth accelerates.

The report showed 41.9% of unemployed Americans, or 6.3 million people, were out of work for more than six months in November. The longer someone is without a job, the harder it is to find work.

President Barack Obama's administration this week warned the expiration of long-term jobless benefits could hit consumer spending in the holiday season, weakening the economy further and ultimately costing more jobs. The law that temporarily extended unemployment benefits to as long as 99 weeks expired this week after Democratic and Republican senators blocked rival attempts to renew it. That means that extended jobless benefits affecting about two million people are set to expire by the end of the year.

A broader measure of the unemployment rate, which includes people who stopped looking for work and those settling for part-time jobs, remained high at 17% in November, the same as the previous month.

Meanwhile, the average workweek for all employees was 34.3 hours in November, the same as in October. Employers normally increase the hours for their existing work force before hiring new people.

Average hourly earnings of all employees increased by just one cent to $22.75. Higher income helps support consumer spending. Accounting for about 70% of demand in the U.S. economy, household consumption remains weak compared with previous recoveries.

http://online.wsj.com/article/SB10001424052748703989004575652483381208608.html?mod=WSJ_hp_LEFTTopStories

[JohnSmith2007 353]

I really don't see how some people here can claim that the economy is on the mend or how the trillions of dollars wasted on stimulus has produced any results. You can post all the charts you want, all the quotes from so called "experts" you want. The fact remains that unemployment has gotten worse since the stimulus, not better. It has also stayed at these levels for longer than they ever had since WW2. There is no recovery until people go back to work. If that is your definition of success then I suggest you buy a dictionary.

[I AM NOT THAT GUY 5,715]

Don't worry. It will begin going down in December, as UI benefits run out. All my hippie friends are in a panic mode, and are actually looking for work as that happens.

[ready4ONE 5,400]

Funny how this was good news yesterday. The Faux News effect perhaps? We must not be positive about anything while Obama is in office...

[JohnSmith2007 353]

Funny how this was good news yesterday. The Faux News effect perhaps? We must not be positive about anything while Obama is in office...

How can unemployment going up ever be good news? How could the forecasters being off so badly ever be good news? BTW, this is a WSJ story, not Fox. Nice try at blaming the messenger.

Edited December 3, 2010 by JohnSmith2007

[Dan J 277]

How can unemployment going up ever be good news? How could the forecasters being off so badly ever be good news? BTW, this is a WSJ story, not Fox. Nice try at blaming the messenger.

You do know that News Corp owns both the Wall Street Journal and Fox News?

[JohnSmith2007 353]

You do know that News Corp owns both the Wall Street Journal and Fox News?

Your point is? The story states facts, not opinion. No where does it say this is good news or bad news, it is just news. If you want to sugar coat something to make it into something else then feel free. The numbers are what they are regardles of who reports them.

[Dan J 277]

Your point is? The story states facts, not opinion. No where does it say this is good news or bad news, it is just news. If you want to sugar coat something to make it into something else then feel free. The numbers are what they are regardles of who reports them.

You were trying to make the point that the wall street journal is a better messenger, but the fact is, that they are both owned by News Corp, which has made no secret about editorializing its content to support its political bias.

[Obama 2012 1,714]

Heil Obama!!!

[JohnSmith2007 353]

You were trying to make the point that the wall street journal is a better messenger, but the fact is, that they are both owned by News Corp, which has made no secret about editorializing its content to support its political bias.

Show me the bias in this story. Please. Really. Come on now. Show me the bias.

[Dan J 277]

Show me the bias in this story. Please. Really. Come on now. Show me the bias.

I wasnt commenting on the story, just on your assertion that WSJ is better than Fox News.

[JohnSmith2007 353]

I wasnt commenting on the story, just on your assertion that WSJ is better than Fox News.

Why does the subject even need to be brought up? What difference does it make who reports on this fact based story? It is an attempt to deflect and make this about Fox rather than the complete failure of the Obama admin to bring the economy back after 2 years and trillions of dollars. BTW, I am referring to Ready and not Dan for the deflection comment. Dans comment is moot since this isn't an editorial by a NewsCorp company.

[Mr. Big Dog 10,747]

Trillions of dollars? I thought the total stimulus package was about $800 billion about 75% of which had been spent. That would be about $600 billion - quite shy of a trillion, let alone trillions of dollars. If you back out the $200 some odd billion that went to tax cuts which you favor, it leaves much less than half a trillion dollars much of which actually went to states allowing them to keep teachers in the classrooms and police on the street. But sure, trillions of dollars...

[JohnSmith2007 353]

Trillions of dollars? I thought the total stimulus package was about $800 billion about 75% of which had been spent. That would be about $600 billion - quite shy of a trillion, let alone trillions of dollars. If you back out the $200 some odd billion that went to tax cuts which you favor, it leaves much less than half a trillion dollars much of which actually went to states allowing them to keep teachers in the classrooms and police on the street. But sure, trillions of dollars...

No comment on how well the stimulus worked regardless of the amount? Tell me again how the stimulus saved everyones jobs. Tell me again how well this administrations handling of the economy has been such a success. Only a comment on my numbers. Interesting.

Edited December 3, 2010 by JohnSmith2007

[one...two...tree 2,762]

Today's report, which is being called bad numbers, we learned of 50,000 new private sector jobs and the loss of 11,000 more public sector jobs.

To me, this really does seem like a bad result. But conservatives in the audience need to recognize that we're getting what they say they want. The private sector is growing and the public sector is shrinking. If you're disappointed in the results, you can perhaps consider reviving your view of the desirability of executing this shift in the middle of a collapse in aggregate demand. But what you can't do is say that the bad economy is somehow being caused by an Obama-era slide toward socialism. The slide isn't happening. The explosion in government isn't happening. The public sector is shrinking.

http://yglesias.thinkprogress.org/