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(Jan . 8) -- The American employment situation is getting worse despite the broader recovery in the U.S. economy.
About 85,000 jobs were cut from U.S. nonfarm payrolls in December, with much of the loss coming from the usual-suspect categories of construction, manufacturing and firms that handle big-ticket goods such as cars and refrigerators, according to the Labor Department's survey of businesses.
In contrast, the health-care sector and temp agencies continued to hire. The separate survey of households produced an unemployment rate of 10 percent, unchanged from November. That translated into 15.3 million people in the work force counted as unemployed, compared with 7.7. million when the recession started two years earlier.
And the number of people unemployed for 27 weeks or longer continued to rise, reaching 6.1 million last month. About 2.5 million people weren't even counted in the labor force, up from 578,000 a year earlier, because they had stopped looking for work, and among those 929,000 were discouraged workers -- people who believe no jobs for them are out there.
Still, the pace of layoffs over the long term has improved. During the first three months of 2009, an average of 691,000 jobs were lost per month. Fourth-quarter losses averaged out to just a tenth of that. And the government revised November's payroll numbers to an actual gain of 4,000 jobs from the loss of 11,000 initially reported. That may be a statistical blip, but it will be a welcome one to economists.
Another piece of good news was an increase of average hourly earnings by nonsupervisory worker of 3 cents.
Economy Sheds 85,000 More Jobs
Jan 8, 2010 – 9:08 AM
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