Free Markets, Free People
The Employment Situation: Economic Statistics for 4 Nov 11
It’s all about employment today.
The Monster employment index rose three points to 151 as online recruiting increased in October.
What everyone is really interested in today, though, is the monthly Employment Situation. A disappointing 80,000 net new jobs were created last month, which was well below an already dismal expectation of 90,000 jobs. On the plus side, sharp revisions to prior months were unveiled. September jobs were revised to 158,000 from the originally reported 103,000, while August jobs were revised to 104,000 from the original 57,000. Sadly, we need in excess of 300,000 new jobs per month to begin growing jobs at a rate that will begin to replace the million lost since 2008. Earnings rose 0.2% last month, while the average workweek remained steady at 34.3 hours.
Essentially, the job market remains moribund, though the unemployment rate dropped to 9.0%. But, that drop in the unemployment rate reflects an increase of 277,000 in employment from the household survey, rather than discouraged workers leaving the workforce, which is a positive sign, as that figure has increased for three months in a row. The broadest measure of labor underutilization, the U-6 unemployment rate (Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force) also fell to 16.2% from last month’s 16.5%.