US Unemployment Rate Edges Higher
Unemployed Sergio Fuentes,(R)gets some help from state worker at State of California Employment Development Department in San Jose, 1 Sep 2009 Companies in the United States are shedding more jobs, pushing the country's unemployment rate to a 26-year high of 9.8 percent.
The U.S. Labor Department said Friday that employers cut 263,000 jobs in September, with companies in the service industries, including banks, restaurants and retailers, hit especially hard.
The United States has now lost 7.2 million jobs since the recession began in December 2007. The new data is sparking fears that unemployment could threaten an economic recovery.
Top U.S. officials have warned that any economic recovery would be slow and uneven, and some have predicted the U.S. unemployment rate will top 10 percent before the situation improves.
Also Thursday, the U.S. Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August.
Orders for durable goods - items intended to last several years, including everything from appliances to airliners - fell 2.6 percent, the steepest drop since January.
U.S. Vice President Joe Biden said Friday the latest jobs data was tough news but promised "we are going to recover."
He also noted that the pace of jobs losses, while bad, is better than it was when President Barack Obama first took office. However, he added "less bad is not our measure of success."
The U.S. government has been spending billions of dollars - part of a massive $787 billion stimulus package - to help spark economic growth. There have been some signs the economy is improving.
The Commerce Department said Thursday that spending on home construction jumped in August for its biggest increase in 16 years. The National Association of Realtors said pending sales of previously owned homes rose more than 12 percent in August, compared to August of last year.
A separate Commerce Department report said consumer spending - which accounts for more than two-thirds of U.S. economic activity - rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.
Still, during testimony before a U.S. Congressional Joint Economic Committee Friday, a top economic official warned about the problem of underemployment.
Bureau of Labor Statistics Commissioner Keith Hall said the number of Americans who have settled for part-time jobs, or who have given up looking for work has doubled since the recession began.
Companies in the United States are shedding more jobs, pushing the country's unemployment rate to a 26-year high of 9.8 percent.The U.S. Labor Department said Friday that employers cut 263,000 jobs in September, with companies in the service industries, including banks, restaurants and retailers, hit especially hard.The United States has now lost 7.2 million jobs since the recession began in December 2007. The new data is sparking fears that unemployment could threaten an economic recovery.Top U.S. officials have warned that any economic recovery would be slow and uneven, and some have predicted the U.S. unemployment rate will top 10 percent before the situation improves.Also Thursday, the U.S. Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August.Orders for durable goods - items intended to last several years, including everything from appliances to airliners - fell 2.6 percent, the steepest drop since January.U.S. Vice President Joe Biden said Friday the latest jobs data was tough news but promised "we are going to recover."He also noted that the pace of jobs losses, while bad, is better than it was when President Barack Obama first took office. However, he added "less bad is not our measure of success."The U.S. government has been spending billions of dollars - part of a massive $787 billion stimulus package - to help spark economic growth. There have been some signs the economy is improving.The Commerce Department said Thursday that spending on home construction jumped in August for its biggest increase in 16 years. The National Association of Realtors said pending sales of previously owned homes rose more than 12 percent in August, compared to August of last year.A separate Commerce Department report said consumer spending - which accounts for more than two-thirds of U.S. economic activity - rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.Still, during testimony before a U.S. Congressional Joint Economic Committee Friday, a top economic official warned about the problem of underemployment.Bureau of Labor Statistics Commissioner Keith Hall said the number of Americans who have settled for part-time jobs, or who have given up looking for work has doubled since the recession began. Some information for this report was provided by AFP, AP and Reuters.
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Companies in the United States are shedding more jobs, pushing the country's unemployment rate to a 26-year high of 9.8%.

The US Labor Department said on Friday that employers cut 263,000 jobs in September, with companies in the service industries — including banks, restaurants and retailers — hit especially hard.  This is the 21st consecutive month of job losses in the country.

The United States has now lost 7.2 million jobs since the recession officially began in December 2007. The new data has sparked fears that unemployment could threaten an economic recovery. Top US officials have warned that any recovery would be slow and uneven, and some have predicted the unemployment rate will top 10% before the situation improves.

"Continued household deleveraging and rising unemployment may weigh more on consumption than forecast, and accelerating corporate and commercial property defaults could slow the improvement in financial conditions," read a report by the International Monetary Fund's World Economic Outlook, predicting that unemployment will average 10.1% by next year and not go back down to five percent until 2014.

Mark Zandi, chief economist at Moody’s Economy.com, said that “it’s a very fragile and tentative recovery. Policy makers need to do more.”

"The number came in weaker than expected. We saw a lot of artificial involvement by the government to prop up the markets, and now that that is starting to end, the private sector isn't yet showing signs of life," said Kevin Caron, a market strategist for Stifel, Nicolaus & Co.

Also on Thursday, the US Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August.  Orders for durable goods — items intended to last several years (including everything from appliances to airliners) — fell 2.6%, the largest drop since January of this year. 

The US government has been spending billions of dollars — part of a $787 billion stimulus package — to help spark economic growth.  There have been some signs the economy is improving.

The Commerce Department said on Thursday that spending on home construction jumped in August for its biggest increase in 16 years. A real estate trade group, the National Association of Realtors, said pending sales of previously owned homes rose more than 12 percent in August, compared to August 2008.

A separate Commerce Department report said that consumer spending, which accounts for more than two-thirds of US economic activity, rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.

Other reports have provided cause for concern. A banking industry trade group said Thursday the number of US consumers making late payments, or failing to make payments, on loans and credit cards is on the rise. A survey by a business group, the Institute for Supply Management, Thursday showed US manufacturing grew in September, but at a slower pace than in August when manufacturing increased for the first time in a year and a half.  

Stock markets reacted negatively to the reports. The Dow Jones Industrial Average fell 41 points in early trading, reaching a level of 9467. This follows a drop of 203 points on Thursday, its largest loss in a single day since July. The London FTSE index fell 55 points, or 1.1%, to reach 4993 points by 15.00 local time.