Jobless rate tops 10% for first time since 1983

By CHRISTOPHER S. RUGABER AP Economics Writer - 11/6/2009


WASHINGTON — The unemployment rate has surpassed 10 percent for the first time since 1983 — and is likely to go higher.

Nearly 16 million people can't find jobs even though the worst recession since the Great Depression has apparently ended. The Labor Department said Friday that the economy shed a net total of 190,000 jobs in October, less than the downwardly revised 219,000 lost in September. August job losses were also revised lower, to 154,000 from 201,000.

But the loss of jobs last month exceeded economists' estimates. It's the 22nd straight month the U.S. economy has shed jobs, the longest on records dating back 70 years.

Counting those who have settled for part-time jobs or stopped looking for work, the unemployment rate would be 17.5 percent, the highest on records dating from 1994.

The jobless rate rose to 10.2 percent from 9.8 percent in September. The jump reflects a sharp increase in the tally of unemployed Americans, which rose to 15.7 million from 15.1 million. That was much larger than the net loss of jobs, which is based on a survey of businesses.

Economists say it could climb as high as 10.5 percent next year because employers remain reluctant to hire.

Friday's report is the first since the government said last week that the economy grew at a 3.5 percent annual rate in the July-September quarter, the strongest signal yet that the economy is rebounding. But that isn't fast enough to spur rapid hiring, raising the specter of a jobless recovery.

"You need explosive growth to take the unemployment rate down," said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co.

Greenhaus said the economy soared by nearly 8 percent in 1983 after a steep recession, lowering the jobless rate by 2.5 percentage points that year. But the economy is unlikely to improve that fast this time, as consumers remain cautious and tight credit hinders businesses. In fact, many analysts expect economic growth to moderate early next year, as the impact of various government stimulus programs fades.

Many economists also worry that persistently high unemployment could undermine the recovery by restraining consumer spending, which accounts for 70 percent of the economy.

One sign of how hard it still is to find a job: the number of Americans who have been out of work for six months or longer rose to 5.6 million, a record. They comprise 35.6 percent of the unemployed population, matching a record set last month.

Congress sought to address the impact of long-term unemployment this week by approving legislation extending jobless benefits for the fourth time since the recession began. The bill would add 14 to 20 extra weeks of aid and is intended to prevent almost 2 million recipients from running out of unemployment insurance during the upcoming holiday season. President Barack Obama is expected to quickly sign the legislation.

The employment report showed that job losses remain widespread across many industries. Manufacturers eliminated a net total of 61,000 jobs, the most in four months. Construction shed 62,000 jobs, down slightly from the previous month.

Retailers, the financial sector and leisure and hospitality companies all continued to reduce payrolls. The economy has lost a net total of 7.3 million jobs since the recession began in December 2007.

The average work week was unchanged at 33 hours, a disappointment because employers are expected to add more hours for current workers before they begin hiring new ones.

There were some bright spots in the report. Professional and business services companies added 18,000 jobs. And temporary employment grew by 33,700 jobs, after losing positions for months. That's a positive sign because employers are likely to add temporary workers before hiring permanent ones.

Still, economists expect jobs likely will remain scarce even as the economy improves. Diane Swonk, chief economist at Mesirow Financial, said that small businesses, a primary engine of job creation, still face tight credit and don't have the cash reserves to support extra workers.

And many companies are squeezing more production from their existing work forces. Productivity, the amount of output per hour worked, jumped 9.5 percent in the third quarter, the Labor Department said Thursday.

That's the sharpest increase in six years and followed a 6.9 percent rise in the second quarter. The increases enable companies to produce more without hiring extra people.



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Tulsa World Reader Comments
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Jester1969, Broken Arrow (11/6/2009 9:43:11 AM)
Mr. P, You beat me to the punch on the 650k "saved" jobs jab :-).

tfromtulsa, Tulsa (11/6/2009 9:49:36 AM)
Obama's not very good with numbers, is he?

tfromtulsa, Tulsa (11/6/2009 4:19:28 PM)
KYCane - lol! Good point. mr.peabody - I'm sure they're around here somewhere.

Daven, Tulsa (11/6/2009 8:58:07 AM)
Notice a trend in the amount of jobs lost? Its going down. Its sad and pathetic that anyone would think that a recovery would happen overnight. Where were you all when the articles about good news in the economy came out this week? Look back in TulsaWorld. They posted plenty of them.

Daven, Tulsa (11/6/2009 9:02:13 AM)
Oh BTW, anyone wanna guess who was president back in 1983? lol!

Daven, Tulsa (11/6/2009 9:05:45 AM)
The economy has lost a net total of 7.3 million jobs since the recession began in December 2007. And who was president in 2007 and 2008? Hmmmm. I wonder.

Daven, Tulsa (11/6/2009 10:39:23 AM)
fresdad, guess you didnt read that she mentioned they were 25% off and that still wasnt cheap enough for her. Nor did she say she was shopping for cashmere sweaters. Anyone of any wealth can window shop.

Daven, Tulsa (11/6/2009 10:49:36 AM)
Our biggest opprotunity to keep us from sliding in this bad economy was missed under the Bush administration. Had they acted when all of the economist were telling them that the housing bubble was going to not just burst but blow up like a nuclear explosion, then we would have had a better economy now. The Bush admin did not act until after it was too late and the forclosure rates were climbing way to high for banks to handle. But I am sure all of you repubs that want to blame Obama for this mess forget all about that.

Daven, Tulsa (11/6/2009 11:46:07 AM)
Thats your opinion based on one video from the media. But the facts are he waited and the action he did was too little too late. Guess he was too busy standing under a lie of statement on an aircraft carrier.

Few Clothes, America (11/6/2009 6:46:21 PM)
I'm sorry Rufus. The kool aid has pickled you brain and kill your common sense. You must have been a nice guy once.

Few Clothes, America (11/6/2009 6:46:58 PM)
killed.

drudge2, Tulsa (11/6/2009 6:42:48 PM)
" The unemployment rate has surpassed 10 percent for the first time since 1983" Wow: the conservs must be ecstatic! That makes Obama downright Reaganesque! Funny how the wingnuts have totally ignored the fact that Daven mentioned that very point at 9:02 am. I guess they are too busy whining or too afraid to realize that Reagan was in the same league as Obama.

KYCane, Crestwood (11/6/2009 12:58:51 PM)
tfromtulsa: Don't forget The Mathematician In Chief also admitted today to helping w his daughter Malia's Math homework. Her grade went up from a 75 to a 95. Funny how he'll out his daughter's grades but he won't release his.

okierose, Tulsa County (11/6/2009 8:36:33 AM)
Funny not one liberal, not supporter of the POTUS has posted this morning. They know he lies.

okierose, Tulsa County (11/6/2009 11:14:45 AM)
Daven, Tulsa (11/6/2009 10:49:36 AM) Our biggest opprotunity to keep us from sliding in this bad economy was missed under the Bush administration. Had they acted when all of the economist were telling them that the housing bubble was going to not just burst but blow up like a nuclear explosion, then we would have had a better economy now. You are WRONG. Search youtube for a news story Brian Williams did on Bush. Bush warned congress in 2001 that Fannie and Freddie were not headed in the right direction. NO ONE listened. The POTUS you so defend was one of the ones who got us in this mess as a community organizer trying to get unqualified people to qualify for a mortgage. All this actually started in 1996, just as Brooksley Born.

ajohnb, Jenks (11/6/2009 8:12:43 AM)
Now over 10% unemployment rate. Thanks obama!!! Change we can believe in? No one said it would be "good" change. obama only promised "change". Thats one campaign promise he has kept. C'mon liberals. What kind of spin are you going to put on this? Who caused this in your eyes? Bush, Reagan, Lincoln???? Fact remains. It has been one year since the election and the unemployment rate keeps rising and our national debt keeps rising. Spin that.

ajohnb, Jenks (11/6/2009 10:04:28 AM)
Sorry GOP'er, rufus-b-me beat you to it. He blamed Bush before you did!!!!

Newsmax, Tulsa - MidTown (11/6/2009 8:31:42 AM)
I remember John Kerry kept saying back in 2004 leading up to the Bush / Kerry election that those Bush years (2001-2004) were the worst since the great depression! (Unemployment rate at 5% then) Now that we have a Democrat in office for almost a year (10.2%) and it's still Bush's fault! 3 years from now when unemployment is at 20% will it still be Bush's fault? Probably so! Rush Limbaugh was right about our President, you libs just won't admit it!

fredsdad, Tulsa, OK (11/6/2009 9:57:18 AM)
If you are going to use the public treasury to affect employment (an idea that has never served us well long term), it is fairly simple to reduce unemployment. It has been shown time after time througout history that tax abatements increase employment. Of course, to the extent that those tax abatements require borrowing to sustain the public treasury, the increased economic activity is offset by the cost of the borrowings. But those costs can be paid later - well after the next election cycle. If you choose to use the public treasury not to reduce unemployment, but to increase and consolidate the power of the government over the populace, unemployment is a wonderful thing indeed. When the populace feels unsecure, they will sell their liberty cheaply for security. Of course, to the extent that the purchase of the people's liberty requires borrowing to sustain the public treasury, the increased power of the government is offset by the weakness created by the indebtedness. But those costs can be paid later - well after the next election cycle. Our founders knew all of these things, and wrote a Constitution that severely limited the power of the central government to intervene in the economic life of the populace. If they lacked foresight, it was in giving SCOTUS Justices lifetime terms rather than 10 years. Their confidence in Congress to remove Justices who made absurd decisions turned out to be woefully misplaced. What morons they must think we are now. President Bush did plenty of wrong things, and feel free to blame him for as long as you think you can get away with it. But this economy - and most particularly this unemployment - is directly on President Obama and his decision to use the public treasury to increase and consolidate his power and that of his comrades, thereby weakening the nation for future generations. But that cost too will be paid later - well after the next election cycle.

fredsdad, Tulsa, OK (11/6/2009 10:19:25 AM)
Faith, I'm all for defending the wretched rich, but if you are shopping for cashmere sweaters at Saks while I am trying to find a cotton one in the drawer (with the broken track) that doesn't have a mustard stain, you're probably not going to generate a lot of sympathy.

fredsdad, Tulsa, OK (11/6/2009 6:01:10 PM)
Faith, Healthcare is a job killer, not a job creator. Cap and tax will be the biggest job killer yet, eliminating or completely marginalizing any manufacturing base we have left. These are the opinions of Democratic advisers to Carter, which doesn't give my great faith, but even a blind pig can find an acorn now and then. Sighted Pigs find ACORNS. For far less than President Obama has spent and a fraction of what he proposes to spend, unemployment could be at 6% and falling in 6 months. President Obama does not want 6% unemployment for the reasons described in my 9:57 am post.

fredsdad, Tulsa, OK (11/6/2009 6:10:10 PM)
Incidentally, AARP is backing the healthcare plan because it gets rid of Medicare Advantage, which is in direct competition to the policies AARP offers. AARP is protecting its insurance business and not its members. It is hemorrhaging members because of the endorsement. But $19 annual members are worth far less than $2,000 annual insurance customers. You talk about the Republicans riling people up who can't think. Nothing could be farther from the truth. Thinking, knowledgable, intelligent people who are smart enough to see what has happened and is happening got themselves riled up at Republicans and Democrats alike who persist in spending us into bankruptcy. Those not so intellectually gifted continue to swallow the latest line from the teleprompter.

mr.peabody, country side oklahoma (11/6/2009 9:26:47 AM)
Biden needs to save another 650k jobs.

mr.peabody, country side oklahoma (11/6/2009 12:36:49 PM)
Jester1969- I'll refrain in defference next go-round. They say great minds think alike.LOL You could throw the "just as advertised" qoute in though.

mr.peabody, country side oklahoma (11/6/2009 1:17:47 PM)
tfromtulsa- I'm still tring to find our 7 missing states?


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