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February 5, 2010 in Nation/World
U.S. joblessness falls to 9.7 percent
Unemployment rate lowest since August
WASHINGTON (AP) — The outlook for jobs remains bleak despite January’s unexpected decline in the unemployment rate, which fell to 9.7 percent from 10 percent in December.
A Labor Department survey of households found that 541,000 more Americans had jobs last month. But most of those gains were attributed to seasonal adjustments to the data. Without those adjustments, which account for reduced hiring during winter, the data show fewer people had jobs last month.
A separate survey of businesses found that employers shed 20,000 jobs last month. Excluding the beleaguered construction industry, the private sector as a whole added 63,000 positions.
The unemployment rate fell to its lowest level since August. John Silvia, chief economist at Wells Fargo, said the decline wasn’t a result of a shrinking labor force, which has held the rate down in previous months.
“It simply was, people found jobs,” he said. The report is “consistent with continued improvement in the labor market.”
But the department revised its past estimates to show that job losses from the Great Recession have been much worse than previously stated. The economy has shed 8.4 million jobs since the downturn began in December 2007, up from a previous figure of 7.2 million. That’s the most jobs lost in any recession, as a percent of total employment, since World War II.
Analysts think the economy might generate 1 million to 2 million jobs this year. And they say it will take at least three to four years for the job market to return to anything like normal.
The employment figure for November was revised higher to show a gain of 64,000 jobs. That was initially reported as a gain of 4,000.
January’s report offers hope that employers may start adding jobs soon. Aside from November’s gain, January’s job losses were the smallest since the recession began and are down from the huge loss of 779,000 jobs in January 2009.
The manufacturing sector added jobs for the first time since January 2007. Its gain of 11,000 jobs was the most since April 2006.
Retailers added 42,100 jobs, the most since November 2007, before the recession began. Temporary help services gained 52,000 jobs, its fourth month of gains. That could signal future hiring, as employers usually hire temp workers before permanent ones.
The average work week increased to 33.3 hours, from 33.2. That indicates employers are increasing hours for their current workers, a step that usually precedes new hiring.
The number of part-time workers who want full-time work, but can’t find it, fell by almost 1 million. That lowered the “underemployment” rate, which also includes discouraged workers, to 16.5 percent from 17.3 percent.
The federal government has begun hiring workers to perform the 2010 census, which added 9,000 jobs. That process could add as many as 1.2 million jobs this year, though they will all be temporary.
But job cuts at the state and local levels canceled out those gains, as government employment fell by 8,000.
Most of the 75,000 jobs lost in the construction industry came from the commercial building sector, the department said. Construction lost more jobs than other sector.
Still, jobs remain scarce even as the economy is recovering: Gross domestic product, the broadest measure of the nation’s output, has risen for two straight quarters. GDP rose by 5.7 percent in the October-December quarter, the fastest pace in six years.
Many economists say businesses are reluctant to add workers because it’s not clear whether the recovery will continue once government stimulus measures, such as tax credits for home buyers, fade this spring.
The debate over health care reform and the scheduled expiration of some Bush administration tax cuts at the end of this year may also hold back some employers, many economists said.
“Until some of these uncertainties from Washington get cleared up, businesses, particularly small businesses, are going to be loath to do any additional hiring,” said Hank Smith, chief investment officer at Haverford Investments.
High unemployment could restrain consumer spending, which has led most recoveries in the past. That’s why many economists think the current rebound will be weak.
Public concern about persistent unemployment has forced President Barack Obama and members of Congress to shift their attention to jobs and the economy and away from health care reform. The Senate will begin working Monday on legislation that would give companies a tax break for hiring new workers, Majority Leader Harry Reid said Thursday.
The budget plan Obama released this week projects unemployment will still be very high — 9.8 percent — by the end of this year.
© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Ancient Roman wrecks found in deep water 
Ol_Blue on February 05 at 8:11 a.m.
Yesterdays Headline…”Stocks fall on job losses….an unexpected jump in the number of Americans filing for unemployment benefits, had investors pulling money out of assets like stocks”
Today’s…..”U.S. joblessness falls to 9.7 percent…The unemployment rate fell to its lowest level since August. John Silvia, chief economist at Wells Fargo, said the decline wasn’t a result of a shrinking labor force, which has held the rate down in previous months.
“It simply was, people found jobs,” he said. The report is “consistent with continued improvement in the labor market.”
…..What a load of doublespeak..Total BS!!!!
sixandseven on February 05 at 9:10 a.m.
I like how they dont compare losses to people finding jobs.
I bet those job losses were well paid living wage jobs and those finding jobs are standing at the front of WalMarts.
I cant believe anything my Government tells me any more.
lewis8457 on February 05 at 9:39 a.m.
private sector loses 7 million jobs government looses 8 thousand that tells the whole story right there.
I think it is funny SR has a story everyday about how much better it is according to government. What a load.
mikeln on February 05 at 10:34 a.m.
Untill the this country shifts from a debt driven economy, which only makes the bankers wealthy to a savings driven economy that keeps the control of money in the hands of every day people will we see employment go up. It’s time to tell the government we have had enough of a very few poeple becoming super wealthy at every ones expense. We need jobs that pay enough so we can save to buy that washer and dryer or whatever else we need instead of paying some cockroach to borrow money for it.
empyrius on February 05 at 10:47 a.m.
It seems military jobs are always available!
I was watching NBA basketball on TNT (sponsored by the U.S. Marines no less) last night, and between 1900-2200 hours there must have been about fifty commercials for all branches of the military; by the time Portland was finishing off San Antonio I was completely brainwashed.
I started muttering suff about “honor”, “pride”, and “country”: I was ready to go kill me some Japs, or Nazis, or Chnese, or Russians, or Muslims, or Europeans, or, well, whoever the CO says take out we just take out baby!!!!!! Har har har har.
The biggest irony is I notice how many “minorities”, besides the white trash, these commercials try to appeal to; blacks, Hispanics, Asians, Pacific Islanders, all these commercials had front and center peoples America had already crushed under our heel. And then you get the conquered people to fight for you: divide and conquer, textbook, “game over man”!
The clinching piece of propaganda was a commercial that stated, “America’s Navy: A Global Force for Good”, in fact, here it is, http://www.navy.com/the-calling/?campaign=promocalling_navy
Evil would of course call itself good!
America is evil! You evildoers are going down baby!!!!
pax vobiscum
Megan_B on February 05 at 1:23 p.m.
You know the MAIN reason small businesses are skeptical about new hiring? The negative attitude of their consumers. As long as potential customers think that things aren’t going to get better, and all positive news is read as lies from the government, then they aren’t going to hire. Yes, things are bad. Yes, there’s a lot of people out of work and people still losing their homes. But until we can start to think positively about the progress we have made, and continue to make, we can’t begin to change the overall attitude. The attitude of the consumers will ultimately change the attitude of the business owners. And lucky for us our president is doing a big push for more exports vs. imports, and tax large corporations who hire foreign workers. This =’s more U.S. jobs. Sometimes I could swear he’s stealing ideas from my facebook page. haha