RELEASED TODAY: Payroll employment fell by 199,000 in September, and the
unemployment rate was unchanged at 4.9 percent, the Bureau of Labor
Statistics reported today. Sharp job losses continued in manufacturing, and
employment also fell in services, wholesale trade, and retail trade.
New jobless claims for the week ending Sept. 29 jumped to 528,000, an
increase of 71,000 from the previous week's revised figure of 457,000,
according to figures released by the Labor Department's Employment and
Training Administration. The increase of 71,000 exceeded most analysts'
expectations in reaching a nine-year high (Daily Labor Report, page D-1).
U.S. companies in September announced a total of 248,332 job cuts, 77
percent higher than in August, according to a report from the outplacement
firm of Challenger, Gray & Christmas Inc. released Oct. 4 (Daily Labor
Report, page A-8).
Recent data on consumer spending, investment outlays, trade, and overall
economic activity for July and August show the economy was going from bad to
worse--and was most likely in recession--before the Sept. 11 attacks took
place, according to a report released Oct. 4 by the Economic Policy
Institute. The report, Prosperity Wasn't Just Around the Corner, disputed
reports from financial experts who have indicated the economy was on its way
to recovery before the attacks. EPI's economists said evidence indicates the
economy slacked in July and August compared to prior months (Daily Labor
Report, page A-4).
Initial jobless claims rose 71,000 last week, more than double forecasts.
The jobless rate for workers with unemployment insurance rose to a
seven-year high of 2.7%, and the less volatile four-week moving average of
claims climbed 29,500 to 453,500 last week. In addition, many people facing
layoffs are unprepared, with slim personal savings and high debt ( The Wall
Street Journal, pages A2 and A6).
The Bush Administration is seeking a replacement for Katharine G. Abraham as
commissioner of labor statistics, traditionally a nonpolitical job.
Abraham's second four-year term as head of the Bureau of Labor Statistics
expires a week from Saturday ( John M. Berry, The Washington Post, page
A35).
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