Friday, January 9, 2009

Unemployment Jumps to 7.2%, 524,000 Jobs Lost in December…

Unemployment Jumps from 6.7% to 7.2%. There were 2.6 million jobs lost last year according to the Labor Department and that is the worst showing since 1945. The reaction in the market? LOL, I knew they were expecting bad, but I can only laugh when I see this type of stuff… guess when the release came out on this chart (DOW futures on left, S&P futures on the right):



Anyway, the 524,000 number wasn’t nearly as bad as some feared, but remember, this number is subject to the BLS’s manipulation, is not tracked anything like how it used to be, and thus if calculated the way it was in 1945 would be much, much larger.

Here’s a link to the BLS report: BLS report

This is the type of stuff the BLS does that’s just outrageous:

The change in total nonfarm employment for October was revised from -320,000 to -423,000, and the change for November was revised from -533,000 to -584,000. Monthly revisions result from additional sample reports and the monthly recalculation of sea-
sonal factors.

Come on, that's a 32% revision for the month of October! you cannot trust any of their numbers AT ALL!

Here’s John William’s chart from Shadow Stats. It’s not updated yet, but it will update automatically once he inputs the data, so check back to see the numbers how they would have compared:


Chart of U.S. Unemployment


Total 2008 job loss: 2.6 million


Payrolls shrink by 524,000 in December. Unemployment rises to 7.2%.

By David Goldman, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Yet another sobering government labor report released Friday showed the economy lost 524,000 jobs in December, bringing 2008's total job loss to 2.6 million.

Last year's steep drop in employment marked the highest yearly job-loss total since 1945.
Economists surveyed by Briefing.com had forecast a loss of 525,000 jobs in the month.

According to the Labor Department's monthly jobs report, the unemployment rate rose to 7.2% last month from 6.7% in November and higher than economists' forecasts of 7%.
The unemployment rate, which is compiled in a separate survey from the payroll number, was at its highest level since January 1993.

The vast majority - 1.9 million - of last year's job losses came in the final four months of 2008, after the credit crisis began in September. November's job loss was revised up to 584,000 from 533,000, and October was revised up to 423,000.