U.S. Unemployment Rate Slides Down to 7.2%: Jobs Report Disappoint

U.S. Unemployment Rate Slides Down to 7.2%: Jobs Report Disappoint

The U.S. unemployment rate has fallen to 7.2%, the lowest in five years since the end of the Great Recession. Yet, employers are showing a reluctance to add jobs with only 148,000 jobs added in September. The economy added an average of 195.000 jobs a month the first half of the year and began slowing during the summer.

The lowered unemployment rates can also be attributed to workers who started dropping out of the labor force frustrated by their inability to find a job. Younger workers are most affected as baby boomers that need money for retirement remain in the workforce.  Many older workers were hit the hardest in the down economy and loss of equity in their homes.

The disappointing growth is likely to reinforce the hesitance of the Federal Reserve officials to begin a withdrawal of its monetary stimulus program. Fed policymakers are weighing a cutback in its $85-billion-a-month purchase of bonds, but officials have been waiting for stronger employment growth.

The problem still is that our economy is not adding enough jobs to keep up with the population growth and new job seekers entering the market. The creation of new jobs is too slow to absorb at a satisfactory rate for the 11.3 million still officially unemployed or the help the 8 million part-time workers who want more hours or full time work.

Job growth in September was highest in the retail trade, transportation and warehousing, and temporary-help industries where each category added more than 20,000 jobs. The construction sector added 20,000 jobs and its strongest gain since February. Manufacturing remained flat, and the once-booming leisure sector, which includes hotels and restaurants, lost 13,000 jobs over the month. Government payrolls rose by 22,000 in September.

The increase in temporary-help employment may indicate an increase of hiring. Another so-called leading indicator, the average hours worked in a week, showed no change in September at 34.5 hours. Average hourly earnings for all private employees rose a measly 3 cents from August, to $24.09 last month.

Five years after the end of the Great Recession, Illinois has the second highest unemployment rate in the nations. According to the latest seasonally unadjusted unemployment numbers for the U. S. Bureau of Labor, half of Illinois MSAs had unemployment rates higher than the State’s average of 9.2%. In fact, on average unemployment rates were 4%higher than they were in August, 2007 before the recession.

Look for the next monthly jobs report which will be a week late due to the government shut down.  I am hopeful for a better report.

Comments

Leave a comment
  • Too late to save Illinois. The politicians are pushing the jobs out of state with their tax problems. People will start to leave soon also. Chicago will be another Detroit in the near future.

    One thing I found out in life is that the Govt. lies when it comes to job data reports. Especially when they look really bad. They try to make these jobs data reports look like a "Monet" type of painting.

    - Plain facts are more and more full time jobs are disappearing.
    - Obamacare will reduce existing hours on workers due companies can avoid penalties.
    - Unemployed who do not receive benefits anymore, are not counted in the system.
    - More people gave up looking for work.
    - Our politicians & CEO's sent American jobs overseas for higher profit.
    - Govt is issuing tax breaks for companies that are hiring foreign workers.
    - Obama administration is giving citizenship fast track program to foreign professionals ( doctors, engineers) rather giving the same jobs to Americans.
    - This Obama administration does not have a job creation program yet after 5 years in office. Does anyone believe the next three years will be different?
    - Chicago, once a great place that created jobs, is more into creating taxes & fines for people then creating jobs.
    - And if you have not know this yet, non-Chicago residents who work in the city limits, will be taxed on their paycheck for not being a city resident.

    A better job program is where 100 high paying professional jobs are created then 500 min wage jobs. High paying professional pour more money into the economy then min. wage job workers. This country is struggling in creating jobs. All fingers point to this administration.

    Don't blame me for our politicians....I voted for the other guy.

Leave a comment