US Jobs Gloom : 95,000 More Out Of Work
3:17pm Friday October 08, 2010
Hazel Baker
Widespread US government cuts led to a surprise net loss of 95,000 jobs in September, new figures show.
In the largest losses in 28 years, local authorities axed 76,000 roles in September, most of which were in education. A further 77,000 temporary census jobs ended and state authorities shed 7,000 workers. The wave of cuts outpaced weak hiring in the private sector, which added 64,000 positions during the month, after a much bigger rise in August.
A separate survey showed the unemployment rate held at 9.6%, meaning it has now now topped 9.5% for 14 straight months, the longest stretch since the 1930s. The figures raise expectations of further Federal Reserve action to spur the recovery. Most economists now expect the Fed to decide at its meeting next month to buy government debt in an effort to lower interest rates and encourage more borrowing.
Commenting on the release of the data, Fox News business correspondent Adam Shapiro told Sky: "We're not used to prolonged high unemployment, we usually recover much faster than other economies. "It's just unheard of for us in the United States." The closely watched employment report is the last update before the November 2 mid-term elections. On that date US voters will be asked to elect members of Congress, and their impression over whether the economy is recovering or sinking is likely to be a key influencing factor.
