Troubled Economy: 9.7% Unemployment (= 14.9 Million People,) Worst in 26 Years
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U.S. employers cut a fewer-than-expected 216,000 jobs in August, while the unemployment rate rose to a 26-year high, the government said on their September 4 report. The Labor Department said the unemployment rate rose to 9.7 % after dipping to 9.4 % in July. The department revised job losses for June and July to show 49,000 more jobs lost than previously reported.
Analysts had expected non-farm payrolls to drop 225,000 in August and the unemployment rate to rise to 9.5 percent. Meanwhile, job losses for June and July were revised to reflect a loss of 49,000 more jobs than originally reported.
According to objective data released by the Bureau of Labor Statistics on September 4, the number of unemployed persons increased by 466,000 in August raising the nation’s unemployment to 9.7% … the highest it has been in 26 years.
This means that the number of unemployed persons in the United States increased to 14.9 million. Among the major worker groups, the unemployment rates for adult men 10.1 percent), whites (8.9 percent), and Hispanics (13.0 percent) rose in August. The jobless rates for adult women (7.6 percent), teenagers (25.5 percent), and blacks (15.1 percent) were little changed over the month.
Economists surveyed by news agencies like Bloomberg last month projected the jobless rate will reach 10 percent by early 2010 and average 9.8 percent for all of next year.
In the area of factory jobs, for example, the government report shows that factory payrolls fell by 63,000 after decreasing 43,000 in the prior month. Economists forecast a drop of 60,000. The decrease included a loss of 15,000 jobs in auto manufacturing and parts industries.
Announcements of staff reductions continued last month. Whirlpool, the world’s largest appliance maker, said Aug. 28 that it will close its Evansville, Indiana, manufacturing plant, resulting in the elimination of 1,100 jobs, or 1.6 percent of the company’s workforce.
Payrolls at builders declined by 65,000 after decreasing 73,000. Financial firms decreased payrolls by 28,000, after a 17,000 loss the prior month. Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 80,000 workers after falling 154,000. Retail payrolls decreased by 9,600 after a 43,200 drop.
As we already informed in The Americano, this same week the Automatic Data Processing private sector jobs report showed that businesses cut a greater-than-expected 298,000 jobs in August.
The markets have paid enormous attention to these jobs reports as the labor market appears to be one of the weakest areas of the economy.
High unemployment rates threaten to hamper the United States economic recovery by crimping consumer spending, which accounts for two-thirds of GDP, and keeping default rates and foreclosures high.
When President Barack Obama sold his $787 billion stimulus package to the American people, he set one metric for success: jobs. Specifically, President Obama promised the American people he would create 4.1 million jobs by the end of 2010. According to the President’s plan, the stimulus should have lowered the nation’s unemployment rate below 8% by this August. That is the objective standard the President set for himself. We now know the rate is 9.7%
This same week, Vicepresident Joe Biden also claimed that the stimulus bill created or saved between 500,000 and 750,000 jobs. This is demonstrably false. Job creation has fallen since the stimulus became law.
The federal deficit is expected to approach $2 trillion this year, and to remain well above $1 trillion for many years to come, doubling the national debt in just five years. This situation is not sustainable, and this will affect all Americans, Republicans and Democrats, Libertarians and Independents, as well as all demographics including American Hispanics.
The Employment Situation for September is scheduled to be released on Friday, October 2, 2009.
September 4, 2009.
The Americano / Agencies
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The Report also says that since 2007 we have lost several million jobs in the U.S… Do latinos remember who has been running Congress in Washington since even before then…? Democrats. They have majorities in both houses of Congress since January of 2007.
So yes…. 15 million Americans unemployed thanks to the failed policies of the Pelosi-Reid Congress, and thanks to the Democrat Paulson ill-advising Bush in the last part of his presidency…
Finally, note that among the major worker groups, the unemployment rates for Hispanics rose in August to 13%. Yep… these Democrats are really helping Latinos… Please wake up!!!