This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jobs Recovery Will Be a Long Slog

The civilian labor force, which peaked at 154.9 million in October 2008, has declined 1.82 million since, with the most rapid drop coming in the past three months. Half of this decline has occurred in the past three months, a historic extreme that hasn't been seen since the Great Depression.

The Labor Department announced this morning that 589,000 jobs were lost in December. The official unemployment rate remained at 10.0%, as the civilian labor force also shrank by an even larger number, 661,000.

November employment numbers were revised downward to 139,000 jobs gained, changed from the original report of 227,000 jobs gained. The average number of weekly hours worked remained unchanged at 33.2.

A related data point is the number of unemployed, which decreased by 73,000. If you are paying attention, you will be uttering a big "huh?" at this point. Hundreds of thousands of jobs were lost and unemployment improved? This results from the polling practices of the Labor Deparment. If someone who is not employed has not actively looked for work in the past four weeks, they are not included in either the unemployed ranks or the civilian labor force. The high number of such discouraged workers not being counted is making the reported unemployment rate much better than it actually is.

The headline number that most reports will feature is the total non-farms payroll. For December this was reported as a loss of 85,000. November saw an increase of 4,000 payroll jobs, revised from a decline of 11,000 reported last month. This report had surprised many analysts, who had projected larger declines between 40,000 and 80,000. October payrolls were also revised, but in the opposite direction of the November revision. The net change for the two months of revision was only 1,000 additional jobs lost. The average change for the three months October through December was 69,000 payroll jobs lost per month.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $124.53 -1.75%
FB $85.80 -2.51%
GOOG $521.52 -1.91%
TSLA $262.02 -1.90%
YHOO $38.91 -2.87%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs