Unemployment Rises In August; 263,000 Jobs Lost
Numbers just came out today and in July the number was 247,000. This is obviously disappointing because the numbers had been consistently dropping since the beginning of the year and this uptick was not expected.
Analysts polled by Reuters had expected non-farm payrolls to drop 180,000 in September and the unemployment rate to rise to 9.8 percent from 9.7 percent the prior month. The poll was conducted before reports, including regional manufacturing surveys, showed some deterioration in employment measures.
The government revised job losses for July and August to show 13,000 more jobs lost than previously reported. Preliminary annual benchmark revisions, released together with September’s employment report showed that total non-farm payroll employment for March would have to be revised down about 824,000. […]
Since the start of the recession in December 2007, the number of unemployed people has risen by 7.6 million to 15.1 million, the department said. While the decline in payrolls has moderated from early this year, companies are still not hiring on a wide scale, likely waiting for a signal that the economic recovery is sustainable.
This can kind of be a chicken and an egg problem. Companies won’t start hiring until they see signs of recovery, but recovery won’t happen until companies start hiring. Yikes!
That’s where the solvency of the banking industry comes into play, and while we have seen some of the TARP money paid back, money is still hard to come by. My continued belief is employment is always a lagging indicator of economic recovery and that we’ll start to see job growth by Q1 2010.