According to the Labor Department, 104,000 private sector jobs
were added to the U.S. economy in October, while state governments
were largely responsible for a loss of 24,000 positions in the
public sector. Nonfarm payroll employment rose 80,000 in October
and the unemployment rate fell from 9.1 to 9.0 percent. While the
total job gain was lower than that of the last few months, there
have been substantial upward revisions in recent months.
September’s private sector gain, for example, was originally
reported at 137,000 and was subsequently revised up to 191,000 in
the Labor Department’s most recent report.
October’s job growth was concentrated on service-providing
industries with specific gains in food service and drinking
establishments, healthcare facilities, and administrative and
support services. While less substantial, a gain of 10,000 general
merchandise retailer positions is an additional positive indicator
for an industry closely affected by consumer confidence. After
significant gains in recent months, non-residential specialty trade
contractor employment fell by 22,500 positions, the largest loss of
any industry during the month.
The unemployment rate for those who hold a four-year college
degree and higher rose sharply from 4.2 percent to 4.4 percent.
While the gain is attributable to an increase in unemployed
candidates-up 73,000 during the month-total employment of such
degree holders also increased, albeit at a slower rate of just
20,000. The unemployment rate for those working in management,
professional and related occupations fell from 4.5 to 4.4 percent
year over year. Meanwhile, the unemployment rate among sales and
related occupations, which spiked early in the recession, has
fallen from 9.1 to 8.2 percent year over year.
A slight decline in the duration of unemployment in October may
indicate a positive shift that will hopefully continue. The mean
duration of unemployment fell from 40.5 to 39.4 weeks while the
median fell from 22.2 weeks to 20.8. Both of these measures have
been steadily rising for more than three years, and these drops
pull them back to their levels of more than six months ago.
Even when factoring in continued losses in the public sector,
the last three months have seen total average job gains in excess
of 110,000 a month, a rate exceeding U.S. population growth. On the
whole, the most recent employment measures show a labor market that
is holding its own with pockets of growth, pockets of stability,
but just one consistent area of decline-the public sector, which is
the only substantial source of job losses.
Editors Note: The full report can be seen
here: www.bls.gov/news.release/empsit.htm