New Unemployment Rate of 6.7% Worse Than Expected

WASHINGTON, DC—The U.S. Bureau of Labor Statistics reports the country’s unemployment rate in November jumped to 6.7% from 6.5% in October.

Thousands of jobs in the commercial, residential and leisure real estate sectors, as well as the financial, retail and manufacturing industries have been eliminated.

More job cuts are expected to be reported when the December data is released Jan. 9, says Labor Secretary Elaine L. Chao. (top right photo)

“Today’s report underscores the urgent need to stabilize financial markets, ensure access to credit and create a positive environment for job creation,” Chao says.

“We encourage workers looking for help to call 1-877-USA-JOBS and tap the many resources available at the one-stop career centers.” The information may also be obtained through the Department of Labor’s web site at http://www.dol.gov/.

The Labor Department reports 10.3 million Americans are out of work. Even worse news is found in the department’s statistics which show about 1.9 million persons were not counted in the November jobless survey. The 1.9 million figure does not include seasonally-adjusted workers’ totals.

“They were not counted as unemployed because they had not searched for work in the four weeks preceding the survey,” the department says.

Among the marginally attached unemployed in the November household survey were 608,000 discouraged workers, up by 259,000 from a year earlier.

Employment in the construction industry fell by 82,000 in November. Since peaking in September 2006, construction employment has decreased by 780,000.

Specialty trade contractors lost 50,000 jobs in November, with both residential and non-residential components contributing to the decline.

Employment in the leisure and hospitality industries declined by 76,000 in November, with most of the decline, 54,000, occurring in accommodation and food services sectors. Since peaking in April 2008, accommodation and food services has lost 150,000 jobs.

Retail industry job losses in November fell by 91,000. Job losses continued in automobile dealerships by 24,000. In several other retail industries, seasonal hiring for the holidays fell short of normal in November, the Labor Department reports.

(Sheraton Safari Lake Buena Vista, FL, middle left photo)

After seasonal adjustment, employment declined in clothing and accessories stores by 18,000; sporting goods, hobby, book and music stores, 11,000; and furniture and home furnishing stores, 10,000. Wholesale trade employment was down by 25,000 over the month, with most of the decrease among durable goods wholesalers.

Meanwhile, U.S.Commerce Department Secretary Carlos M. Gutierrez (bottom left photo) reports the latest data on factory orders show the orders dropped 5.1% in October, the largest decrease since an 8.5% fall in July 2000.

The drop in orders was larger than the 4% drop that economists had predicted. Economists as a group see manufacturing orders continuing to decrease in the coming months as the recession deepens across all commercial avenues.

“Today’s employment report reflects the difficulties in our economy,” says Gutierrez. “It is devastating when Americans lose their jobs, and many are worried about their future job security.

“The administration is focused on implementing the financial rescue package to stabilize our financial system and preserve jobs in our country.”

Gutierrez says he is confident that “as the financial sector strengthens, it will become easier for businesses to receive credit that will allow them to meet their payroll needs and create jobs.”