The unemployment rate spiked to its highest level since 1983, much worse than expected as employers continue to trim jobs despite other signs of growth.
NEW YORK (CNNMoney.com) -- The nation's unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.
The reading, reported by the government Friday, is a sign of the continued weakness in the labor market even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression.
The government reported that the unemployment rate spiked to 10.2%, up from 9.8% in September. It is the highest that this rate has been since April 1983. Economists had forecast an increase to 9.9%.
There was also a net loss of 190,000 jobs in October, according to the Labor Department, an improvement from a revised estimate of 219,000 job losses in September. However, economists surveyed by Briefing.com had forecast a loss of only 175,000 jobs in October. This was the 22nd straight month of job losses.
"The only good news is the number of layoffs are dropping off, but those who are laid off still aren't finding jobs," said David Wyss, chief economist with Standard & Poor's.
The jump in the unemployment rate was driven up by a large drop in the number of people who describe themselves as self-employed, as well as the number of teenagers who have jobs. The unemployment rate for teenagers in the labor force soared to 27.6%, up 1.8 percentage points and hitting a third straight record high.
Both teen workers and the self-employed are not captured very well in the government's separate survey of employers that is used to calculate the number of people on U.S. payrolls. That explains much of the disconnect between fewer job losses overall and the much worse unemployment rate.
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10 comments:
How's that hope and change working out for ya?
If they added all the numbers it's more like 17 percent !
Wasn't the "spin" from the administration last week, how many jobs were "saved" by the stimulus package? Some said 750K, some 1,000,000, but some said most of that was in education. The administration made sure their biggest supporters were paid back with our tax dollars. The numbers out this week have shut up all that noise that the administration was putting out last week. This is BO's economy and BO's wars. He's just making it all worse. No more blaming Bush. What a bunch of dumb sh__t's that put him in office. Ironically, a lot of the currently unemployed voted for him.
You all are ridiculous. This started with Bush's 8 years and if you can't realize that there is no hope for you.
Highest since St Reagan was in office
It's all Obama's fault!
12:17....that was Carter's mess he dealt with! The honeymoon is over with Obama...he said a vote for him was a vote for change? he's no different than Bush...just a better speaker! honestly, what the hell has he done since taking over? and don't bring up what he inherited again cause that arguement is getting weaker by the day.
12:17 By 1983 Reagan had been in office President for 2 years.
12:48,
Typical right wing nut right there. So that was left for Reagan by Carter. But since Obama has been in office for 10 months, this is totally his fault. Do you not see the flaw in your though process?
seriously what has Obama done????that's all i'm asking.
he had to pass that emergency stimulus to stop the unemployment rate from rising...what has happened? where are the jobs he said would be created?
he wanted to focus on afganistan if he was elected and yet cannot figure out if he should send more troops. by the way, i'm not a right wing nut...i'm an independant...i think both parties are bad for this country...if you truly believe one side is better than the other then i think you are the nut!
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