“On the surface, today’s report on the employment situation was better than expected in light of the recent signs of slowdown in the recovery. However, a deeper look reveals several areas of weakness that demonstrate we still have a long way to go before this job market returns to health. The number of people working part time for economic reasons increased by 444,000 to nearly 9.3 million. The number of people out of work for 27 weeks or more is still at 6.2 million, up from a year ago. The alternative measure of unemployment, which takes into account people who have stopped looking for work, but still want a job, as well as those working part-time because full-time work is unavailable, increased to 16.5 percent. That figure has been on the rise from a recent low of 15.8 percent in May.
“The good news is that we saw job gains in construction, retail trade, information, professional and business services and health care. These represent the strongest areas of the economy and are where we need to get people back to work. But, job growth in these and other areas is likely to be slow for the remainder of the year. We’ll see a temporary spurt in retail hiring for the holidays, but most of those jobs will be gone by the end of January. Furthermore, job gains will be muted by bigger job losses in the government sector, where pressure to cut costs is already resulting in workforce reductions”
- John A. Challenger, Chief Executive Officer
Challenger, Gray & Christmas, Inc.
View the employment situation for September here.