Prolonged gloom

8 January 2010 By Martin Hutchinson

December showed jobs still being lost now 7.2mln, three times the next worst postwar recession. And with productivity rising fast, they won t rematerialize soon. Stubbornly high US unemployment and the associated social and political pathologies are here for some time to come.

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U.S. nonfarm payroll employment declined 85,000 in December. October's decline was revised from 111,000 jobs lost to 127,000, while November's figure was revised from 11,000 jobs lost to 4,000 jobs gained. The unemployment rate remained steady at 10 percent.

The seasonally adjusted unemployment rate, including marginally attached and involuntarily parttime workers (U6) rose from 17.2 percent to 17.3 percent while the labor force participation rate declined from 64.9 percent to 64.6 percent, the lowest since 1985. The mean duration of unemployment rose by 0.6 weeks to 29.1 weeks and longterm unemployment (more than 26 weeks) rose by 229,000 to 6.13 million compared to 2.51million in 2008.

7.2 million jobs have been lost since November 2007 compared with 2.1 million in 200102, 1.7 million in 199091, 2 million in 198182 and 2 million in 197475.

Employment in construction declined 53,000. Manufacturing employment declined by 27,000, leisure and hospitality employment by 25,000 and government employment by 21,000 and wholesale trade employment by 18,000, while healthcare employment increased by 22,000, education employment 11,000 and temporary help rose 47,000. Other sectors were largely unchanged. The average workweek remained constant at 33.2 hours, while average hourly wages rose by 3 cents seasonally adjusted to $18.80.

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