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Unemployment hits 6.5% in October with 240,000 jobs cut. In Summit, 935 people file new claims for benefits last week
By Jeannine Aversa
Associated Press
Published on Saturday, Nov 08, 2008
WASHINGTON: The nation's unemployment rate bolted to a 14-year high of 6.5 percent in October as another 240,000 jobs were cut, worse than economists expected and proof the economy is deteriorating.
The new snapshot, released Friday by the Labor Department, showed the crucial jobs market eroding. The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September, matching the rate in March 1994.
Unemployment has now surpassed the high seen after the last recession in 2001. The jobless rate then peaked at 6.3 percent in June 2003.
October marked the 10th consecutive month of payroll reductions, and government revisions showed that job losses in August and September turned out to be much deeper. Employers cut 127,000 positions in August, compared with 73,000 previously reported. There were 284,000 jobs axed in September, compared with the 159,000 jobs first reported.
So far this year, 1.2 million jobs have disappeared. More than half of the decrease occurred in the past three months.
Claims for unemployment benefits in the nation fell last week by 4,000 to 481,000, according to Labor Department figures that were released Thursday. Numbers above 400,000 are among the signs of a recession.
Summit County
In Summit County, there are signs
of increasing unemployment as well.
According to the latest available Ohio information, 935 people filed new claims for jobless benefits last week in Summit County. That's nearly twice as many as the 492 who filed in the same period a year ago.
There were 4,945 continuing claims last week in Summit County; a year ago, there were 3,505.
Unemployment rate information for Ohio in October is to be released on Nov. 21. County and large city unemployment rates for October are to be released on Nov. 25.
Ohio had an unemployment rate of 7.2 percent in September, according to the latest available state figures. The state's unemployment rate was 5.7 percent in September 2007.
Summit County's unemployment rate was 6.6 percent in September. The county had a 5.2 percent unemployment rate in September 2007. Akron's unemployment was 7.2 percent in September and 5.7 percent in September 2007.
Bush urges patience
About 10.1 million people were unemployed nationwide in October, an increase of 2.8 million over the past year. A year ago, the unemployment rate stood at 4.8 percent.
President Bush said the dismal employment figures reflect ''the difficult challenges confronting the economy'' and he urged the country to have patience, saying a flurry of unprecedented government measures — including the $700 billion financial bailout package — will take time to work.
''I understand that Americans [are] deeply concerned about the challenges facing our economy, but our economy has overcome great challenges before, and we can be confident that it will do so again,'' Bush said.
The employment market is weaker than economists expected. They were forecasting the unemployment rate to climb to 6.3 percent in October and for payrolls to fall by around 200,000.
''The U.S. recession is deepening,'' said Michael Gregory, economist at BMO Capital Markets Economics. The final quarter of this year is getting off to a ''particularly ugly'' start, he said.
Losses widespread
Job losses were widespread, reflecting the mounting carnage from a trio of crises: housing, credit and financial.
Factories cut 90,000 jobs, the most since July 2003. Construction companies got rid of 49,000 jobs, with heavy losses in home building. Retailers cut payrolls by 38,000. Professional and business services reduced employment by 45,000. Financial activities cut 24,000 jobs, with heavy losses in mortgage banking and at securities firms. Leisure and hospitality axed 16,000 positions.
Many expect the jobless rate to climb to 8 percent, possibly higher, next year. In the 1980-1982 recession, the unemployment rate rose as high as 10.8 percent before inching down.
Workers with jobs saw only modest wages gains. Average hourly earnings rose to $18.21 in October, a 0.2 percent increase from the previous month. Over the past year, wages have grown 3.5 percent, but paychecks aren't stretching that far because high food, energy and other prices have propelled overall inflation at a faster pace.
The economy contracted at a 0.3 percent pace in the July-September quarter, signaling the onset of a likely recession. It was the worst showing since the 2001 recession, and reflected a massive pullback by consumers.
Akron Beacon Journal business writer Jim Mac-kinnon contributed to this report.
WASHINGTON: The nation's unemployment rate bolted to a 14-year high of 6.5 percent in October as another 240,000 jobs were cut, worse than economists expected and proof the economy is deteriorating.
Get the full article here.
Comments
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Barberton, OH
Posted 05:16 AM, 11/08/2008
8 years of Bush and 8 years of Taft in Ohio will produce results like this.
Posted 07:43 AM, 11/08/2008
Hmmm, looks like sum-buddy is still harborin' some post election political hatred, or he isn't very bright. Whichever comes first.
The job losses, as well as the housin', credit and financial woes have already been attributed to the programs enacted durin' the Clinton era.
Posted 08:11 AM, 11/08/2008
How's this to fix the economy (this will also have far reaching consequences to better everything)...
Our largest resource on the planet is us. Human beings. We need energy; we need a cleaner environment; we need good jobs.
This may seem radical, and I guess it is, and it seems to be the responsible thing to do.
Instead of fossil fuels or nuclear power turning our turbines to give us energy, I propose we use our own power. Humans powering humans. Through systems of gears, pulleys or what some brilliant scientist draws-up, we could easily find the right formula to power ourselves up.
Think about it...this solves many of the worlds issues!
Steve
Posted 08:30 AM, 11/08/2008
So Beta if the Republicant's had full power in 6 of the last 8, why the heck didn't they do anything to fix those awefull Clinton era problems. Wow are you ignorant!
akron, oh
Posted 08:35 AM, 11/08/2