CNBC News
Jobless Rate Jumps to 10.2% as Labor Market Still Weak
written by Reuters Staff
Friday October 6, 2009
The U.S. unemployment rate unexpectedly jumped to 10.2 percent in October, breaching the politically sensitive double-digit barrier for the first time in 26-1/2 years, even though the pace of job losses slowed.
A Labor Department report showed on Friday that employers cut 190,000 jobs last month, more than the 175,000 markets had expected. Economists had looked for the jobless rate to rise to only 9.9 percent from 9.8 percent the prior month.
The government revised job losses for August and September to show 91,000 fewer jobs lost than previously reported.
U.S stock index futures turned negative on the data, while government debt prices rose.
"The unemployment rate of 10.2 percent is problematic because it gives a sense of urgency to Washington, D.C. Washington will be looking for any increase in stimulus," said Tom Sowanick, co-president and chief investment officer at Omnivest Group.
The labor market is being watched for signs whether the economic recovery that started in the third quarter can be sustained without government support. The economy grew at a 3.5 percent annualized rate in the July-September period, probably ending the most painful U.S. recession in 70 years. [This is UNSUSTAINED ECONOMIC GROWTH!]
Labor market sluggishness and weak wage growth suggest inflation is unlikely to get out of hand anytime soon, giving the Federal Reserve scope to maintain supportive policies. [So why is it that I can buy less with a dollar? Compare prices on goods and services folks. What do you pay today compared to 1 year ago and you'll see what I mean.]
Payrolls have declined for 22 consecutive months now, throwing 7.3 million people out of work since December 2007, when the recession started.
Jobless Rate Jumps to 10.2% as Labor Market Still Weak
written by Reuters Staff
Friday October 6, 2009
The U.S. unemployment rate unexpectedly jumped to 10.2 percent in October, breaching the politically sensitive double-digit barrier for the first time in 26-1/2 years, even though the pace of job losses slowed.
A Labor Department report showed on Friday that employers cut 190,000 jobs last month, more than the 175,000 markets had expected. Economists had looked for the jobless rate to rise to only 9.9 percent from 9.8 percent the prior month.
The government revised job losses for August and September to show 91,000 fewer jobs lost than previously reported.
U.S stock index futures turned negative on the data, while government debt prices rose.
"The unemployment rate of 10.2 percent is problematic because it gives a sense of urgency to Washington, D.C. Washington will be looking for any increase in stimulus," said Tom Sowanick, co-president and chief investment officer at Omnivest Group.
The labor market is being watched for signs whether the economic recovery that started in the third quarter can be sustained without government support. The economy grew at a 3.5 percent annualized rate in the July-September period, probably ending the most painful U.S. recession in 70 years. [This is UNSUSTAINED ECONOMIC GROWTH!]
Labor market sluggishness and weak wage growth suggest inflation is unlikely to get out of hand anytime soon, giving the Federal Reserve scope to maintain supportive policies. [So why is it that I can buy less with a dollar? Compare prices on goods and services folks. What do you pay today compared to 1 year ago and you'll see what I mean.]
Payrolls have declined for 22 consecutive months now, throwing 7.3 million people out of work since December 2007, when the recession started.
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