WASHINGTON: The US unemployment rate has surpassed 10 percent for the first time since 1983, and is likely to go higher. Nearly 16 million people can’t find jobs even though the worst recession since the Great Depression has apparently ended. The Labor Department said Friday that the economy shed a net total of 190,000 jobs in October, less than the downwardly revised figure of 219,000 lost in September. August job losses were also revised lower, to 154,000 from 201,000.
Not only did the loss of jobs last month exceed economists’ estimates, it was also the 22nd straight month that the US economy has shed jobs, the longest on records dating back 70 years.
Counting those who have settled for part-time jobs or stopped looking for work, the unemployment rate would be 17.5 percent, the highest on records dating from 1994.
The jobless rate rose from 9.8 percent in September.
Friday’s report is the first since the government said last week that the economy grew at a 3.5 percent annual rate in the July-September quarter, the strongest signal yet that the economy is rebounding. But that isn’t fast enough to spur rapid hiring: raising worries of a jobless recovery.
In addition, many economists worry that persistently high unemployment could undermine the recovery by restraining consumer spending, which accounts for 70 percent of the economy.
The number of Americans who have been out of work for six months or longer rose to a record 5.6 million. They comprise 35.6 percent of the unemployed population, matching a record set last month.
Congress sought to address the impact of long-term unemployment this week by approving legislation extending jobless benefits for the fourth time since the recession began. The bill would add 14 to 20 extra weeks of aid, and is intended to prevent almost 2 million recipients from running out of unemployment insurance during the upcoming holiday season. US President Barack Obama is expected to quickly sign the legislation.
The employment report showed that job losses remain widespread across many industries. Manufacturers eliminated a net total of 61,000 jobs, the most in four months. Construction shed 62,000 jobs, slightly fewer than the previous month.
Retailers, the financial sector and leisure and hospitality companies all continued to reduce payrolls.
But temporary employment grew by 33,700 jobs, after losing positions for months. – AP
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