Updated January 08, 2010 Economy Loses 85,000 Jobs in December, Jobless Rate Stays at 10 Percent
The economy lost more jobs than expected in December while the unemployment rate held steady at 10 percent, as a sluggish economic recovery has yet to revive hiring among the nation's employers.
WASHINGTON -- Lack of confidence in the economic recovery led employers to shed a more-than-expected 85,000 jobs in December even as the unemployment rate held at 10 percent. The rate would have been higher if more people had been looking for work instead of leaving the labor force because they can't find jobs.
The sharp drop in the work force -- 661,000 fewer people -- showed that more of the jobless are giving up on their search for work. Once people stop looking for jobs, they are no longer counted among the unemployed.
When discouraged workers and part-time workers who would prefer full-time jobs are included, the so-called "underemployment" rate in December rose to 17.3 percent, from 17.2 percent in October. That's just below a revised figure of 17.4 percent in October, the highest on records dating from 1994.
Revisions to the previous two months' data showed the economy actually generated 4,000 jobs in November, the first gain in nearly two years. But the revisions showed it also lost 16,000 more jobs than previously estimated in October.
The report caps a disastrous year for U.S. workers. Employers cut 4.2 million jobs in 2009, and the unemployment rate averaged 9.3 percent. That's compared with an average of 5.8 percent in 2008 and 4.6 percent in 2007. The economy has lost more than 8 million jobs since the recession began in December 2007.
Most economists worry that 2010 won't be much better. Federal Reserve officials, in a meeting last month, anticipated that unemployment will decline "only gradually," according to minutes of the meeting released earlier this week. The Fed and most private economists expect the unemployment rate will remain above 9 percent through the end of this year.
If jobs remain scarce, consumer confidence and spending could flag, potentially slowing the economic recovery. Many analysts estimate the economy grew by 4 percent or more at an annual rate in the October-December quarter, after 2.2 percent growth in the third quarter.
But the economy will need to grow faster than that to bring down the unemployment rate. And the concern is that much of the recovery stems from temporary factors, such as government stimulus efforts and businesses rebuilding inventories.
Other figures from the government's report were mixed: the average work week remained unchanged at 33.2 hours, near October's record low of 33. Most economists hoped that would increase, as employers are likely to add hours for their current employees before hiring new workers.
On the positive side, there was a big jump in temporary hiring of 46,500, bringing the total increase in temporary employment to 166,000 since July. Companies also customarily bring on temporary workers before adding permanent ones.
Job losses remained widespread: manufacturing lost 27,000 jobs and construction shed 53,000, while retailers, the leisure and hospitality industries and government also cut workers.
...and they were surprised the number was this big...just like every other month that they see the numbers before they're released and are surprised when they hit the presses.
As has been stated on here b4 this administration couldn't run a lemonade stand and make a profit and what's been happening to our economy in the last year is a result of the inexperience running this country. You can't spend your way out of debt or we'd all be rich.
As has been stated on here b4 this administration couldn't run a lemonade stand and make a profit and what's been happening to our economy in the last year is a result of the inexperience running this country. You can't spend your way out of debt or we'd all be rich.
The recession as an excuse to remove the less-productive employees. Every organization has employees who perform marginally, but are not bad enough to lay off in normal times.
We are in the middle of a global redefinition of what a job is and how it should be performed. The Internet and the virtual worlds it has made possible, combined with video technologies and virtual-presence capabilities means that thousands of traditional jobs are going to disappear permanently.
Many new jobs require using mobile devices and so the employee need to use old skills with emerging ones- becoming more efficient andthus require fewer employees -
This is no place for the uneducated unambitious - If you live in Schenectady/Rotterdam - there aren't any more jobs sweeping the floor at the GE plant- quit blaming some administration - wake up- go back to school- move- do something - besides b1tch
First, the unemployment rate is 17% if you count the people who's unemployment has run out and our not on the unemployment roll anymore. And there are people who are not actively looking for a job anymore....cause they have exhausted all of their efforts. They are off the radar.
Second, Somebody I have to disagree. I find it hard to believe that viable, successful businesses were just waiting for a recession to come around and use it as an excuse to lay off the nonproductives or undereducated. Businesses have more balls than that. May I also remind you that union shops are the only place that a 'lazy', nonproductive, undereducated person can still be employed. Anyone would have to be brain dead to not know that.
Thirdly, you say to stop bitching about the 'administration' and that it is that we are just in the middle of a so called, 'global redefinition'. Are you implying that obama just 'happened' to be elected during this 'global redefinition'? That my friend is obsurd to say the least. It IS the past and present administrationa throughout this country that has caused this recession. Let's not forget that it was the corrupt Fannie and Freddie's housing market that changed the landscape of unemployment. It was the straw that broke the camel's back so to say.
Forth, where are these good paying industrial jobs? They were all outsourced! Why? In part due to the 'administration' being in bed with the environmentalists and legislating laws that make it almost impossible to do business in this country.
'B!tch about the administration?........YOU BETCHA! IMHO
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I agree with Somebody.....times ARE changing......sweeping floors is not where it's at....come on....what happened with Detroit....we are a fickle folk,,, we like new things all the time.....a rivitor making $70/hour,,,yet they continue to get what?----'bailouts', these are just to 'ease' the shaving....all those folks generation after generation banked on their lack of change.....their schools supported the same old same old....now here they are lacking to move on.....we are PIONEERING AMERICANS.......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
First I'm a college graduate so I know the value of an education, Second I retired from a company that used the latest technology including using a computer so we could do the job with fewer people and increase efficiency. Third this administration is not helping to improve an already horrible economy by raising taxes on individuals and businesses. Fourth how is forcing everyone to buy health-care including forcing the US taxpayer to pay for the health-care of people who are here illegally going to help create jobs and help the economy. If cap and trade is passed how is forcing every US taxpayer to pay more for energy going to help create jobs and improve the economy? This administration lacks the experience in operating a business and the people who the administration has selected to advise the President have been involved in some pretty bad deals themselves, Geitner, for one our economic whiz.
Logged
