The Bureau of Labor Statistics (BLS) announced today that the U.S. unemployment rate rose by, a more than expected, .4% in October to 10.2%. This is its highest level since June 1983, the last time it cracked double digits, when it hit 10.1%. This was caused by employers cutting more jobs than forecast. Nonfarm payrolls fell by 190,000 last month, with the largest job losses in construction, manufacturing, and retail trade. Economists had expected a 175,000 decrease.
Despite a lot of positive economic data lately, jobs creation has lagged. This was to be expected because jobs data historically has been a lagging indicator. However, traditionally when the economy improves, before full time jobs are added, more temporary jobs are created. Unfortunately, this has not been the case as evidenced by poor 3RD quarter earnings by the largest temporary firms such as Manpower and Robert Half.
On a positive note several areas are adding jobs including:
- Auto racing.
- Metrology (the measurement field)
- Patent processing.
- National labs, which are flush with government money.
