Wikinvest Wire

Unemployment rises at fastest pace in 22 years

Friday, June 06, 2008

Normally, the unemployment rate isn't given much attention around here, however, when it posts its biggest monthly increase in 22 years - from 5.0 to 5.5 percent - then it's worth making up an extra chart. The jobless rate is now at its highest since October 2004.
The household survey indicated the number of unemployed rose by 861,000 last month to 8.5 million. A year ago, the unemployment rate was 4.5 percent and the number of unemployed stood at 6.9 million.

The establishment survey indicated a total job loss of 49,000 in May, continuing the string of declines that now totals 324,000 during the first five months of 2008. Data for both March and April were revised to show slightly larger declines than initially reported.
Job creation occurred in the usual areas - health care and government, which, in many cases are one and the same. Where would the nation be without sick people and the ability to borrow/create the money needed to pay for their care?

There was also little change in where job losses occurred in May. Payrolls declined in construction for the 16th month out of the last 20 and, for manufacturing, this marked the 23rd consecutive month of net job losses.
Retail trade (within the Trade, Transportation, and Utilities group above) has taken a decided turn for the worse over the last six months posting consecutive declines of 25K, 16K, 43K, 27K, 39K, and then 27K last month.

This will likely take a bit of the wind out of the sails of the Federal Reserve as they contemplate raising interest rates later this year to "fight" the inflation that they've created over the last nine months.

AddThis Social Bookmark Button


Anonymous said...

Education is lumped in with health? Does this mean public school teachers/adminitrators are not lumped in with government in the statistics?

Tim said...

Education "services" is part of Education and Health Services whereas the teachers employed by the state are under the government category.

Richard Jennings said...

Yes unemployment is up but you are not a statistic and there are still thousands of 75K, 100K and 150K jobs out there. try these sites:

I believe that if you truly want and try to find a good job, you just will.

little larry sellers said...

Are you assuming that readers of this blog are unemployed, Richard, or are you just talking out loud for self-motivation?

I'm watching CNBC right now... it's AWESOME watching the Fast Money guys freaking out like this. The consensus: energy is a bubble and all gains are due to speculation, nothing else. Nope, couldn't have anything to do with the Fed printing money into oblivion.

AuAgPb said...

Thanks for these fine reports Tim.

This was a scary day. I find myself very concerned and all my investments made money today. I like making money, but not at the cost of a depression.

Maybe I am overreacting.

Tim said...

"I like making money, but not at the cost of a depression."
We need change to address some very big issues regarding supply and demand of oil and other important commodities (see Energy chief: Flat production behind oil prices) and change does not come without higher prices.

You recognized this while others haven't.

  © Blogger template Newspaper by 2008

Back to TOP