Employers cut more jobs than forecast in September, sending the unemployment rate to 9.8 per cent — the highest since 1983 — compared with 9.7 in August.
Data released on Friday by the Labor Department in Washington showed US payrolls fell by 260,000, while the numbers for August were revised to a decline of 201,000. The revisions subtracted 13,000 from payroll figures previously reported for August and July.
Economists polled by Bloomberg had forecast a drop of 175,000 in September after a 216,000 decline initially reported for August. Estimates ranged from decreases of 260,000 to 100,000, Bloomberg said. Economists polled by Reuters expected a loss of 183,500 jobs and an unemployment rate of 9.8 per cent.
On Thursday, Goldman Sachs made a bearish revision to its figure for September job losses. The former investment bank said it expected payrolls to decline by 250,000, compared with its previous estimate of 200,000.
The job losses recorded in September have pushed the total number of jobs lost since the US recession officially began in December 2007 to 7.2m, which is the biggest decline since the Great Depression.
The full press release is available at the Bureau of Labor Statistics website here.
On a sector basis, factory payrolls fell 51,000 after decreasing 66,000 in the prior month; payrolls at builders dropped 64,000 after decreasing 60,000; financial firms decreased payrolls by 10,000, after a 25,000 decline in August.
The average work week shrank to 33 hours in September from 33.1 hours in the prior month.
Related links:
The truth about jobs that no one wants to tell you – Robert Reich’s blog
US August non-farm payrolls fall by 216,000 – FT Alphaville
The problem with non-farm payroll numbers – FT Alphaville