Employment: Into the Teeth of the Recession
Employment: Into the Teeth of the Recession
Nonfarm employment fell 240,000 with declines in manufacturing, construction, retail & business services and finance. Meanwhile, the unemployment rate rose to 6.5 percent and the median duration of unemployment rose to 10.6 weeks. Aggregate hours declined for the seventh month in a row, thereby reinforcing the recession forecast.
Employment Declines Signal Broad Consumer Weakness
Job declines were widespread with losses in manufacturing, construction and services - retail, financial and business. The only bright spots remain health care and education.Over the last year, unemployment has risen almost two percentage points with greater increases for construction and production workers.
Unemployment Up, Output Down
Rising unemployment rates have been driven by a loss of jobs and are consistent with weakness in consumer spending and the drop in consumer sentiment. Unemployment rates remain significantly different by education cohort.Hours worked have declined, and this drop is consistent with lower industrial production and a drop in fourth quarter GDP.
Wachovia Corporation
http://www.wachovia.com
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