Economy Sheds 20,000 Jobs But Rate Drops to 9.7 Percent

[jefferson_dem]

Economy Sheds 20,000 Jobs But Rate Drops to 9.7 Percent
Published: Friday, 5 Feb 2010 | 8:35 AM ET Text Size By: Reuters

U.S. employers unexpectedly cut 20,000 in January, but the unemployment rate surprisingly fell to a five-month low of 9.7 percent, according to a government report on Friday that hinted at some labor market improvement starting to take root.

The Labor Department said the economy shed 150,000 jobs in December, compared to 85,000 previously reported, but November was revised to a gain of 64,000, up from 4,000. Annual benchmark revisions to payrolls data showed the economy has purged 8.4 million jobs since the start of the recession in December 2007.

Analysts polled by Reuters had forecast payrolls gaining 5,000 and the unemployment rate to edge up to 10.1 percent in January from 10 percent. Median estimates from the top 20 forecasters expected payrolls to be unchanged last month.

A sharp increase in the number of people giving up looking for work helped to depress the jobless rate. The number of 'discouraged job seekers' rose to 1.1 million in January from 734,000 a year ago.

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http://www.cnbc.com/id/35254420

[DrToast]

1. Let me head something off. The unemployment rate did NOT drop because people stopped looking

The household survey is where the unemployment rate comes from and it actually showed an increase in the labor force AND it actually showed 541,000 more people employed.

[bigdarryl]

3. LINK PLEASE!!!!

[DrToast]

4. Here's the household survey data

http://www.bls.gov/news.release/empsit.a.htm

[Berry Cool]

7. Also, if people out of work longer than six months are officially classified as "discouraged"

and "stopped looking," these numbers are off. I am now going into seven months, and I haven't "stopped looking." I can't afford to "stop looking," anyway, as it would affect my eligibility for extended federal compensation. Under the extension, I still have to contact two employers per week minimum. It's stupid to automatically discount people unemployed longer than six months as having "stopped looking" and THEN say that unemployment is dropping and have people think this means jobs are getting easier to find because employers are hiring!

It's ridiculous. One of the reasons I'm in my situation is because there are so few jobs out there for someone with my skills and experience--and sometimes when I apply for one, I find out the employer has changed its mind and withdrawn the advertisement.

[DrToast]

8. That is NOT true

Discourage workers are people who have stopped looking for work because there aren't any available. They are not part of the labor force and therefore do not add to the U-3 unemployment rate.

Based on what you say, you are not considered a discouraged worker.

[brentspeak]

11. "do not add to the U-3 unemployment rate"

As if the U-3 unemployment rate is some sort of accurate figure we should all be caring about. Are unemployed discouraged workers who nevertheless don't factor in U-3 criteria as "discouraged workers" any less unemployed?

Lies, damned lies, and more damned lies.

[ipaint]

13. Can you explain why these folks aren't counted as unemployed.

"Discourage workers are people who have stopped looking for work because there aren't any available. They are not part of the labor force and therefore do not add to the U-3 unemployment rate."

[Phx_Dem]

12. Right. Also, the number of hours people are working has increased.

It had dropped to about 33 hrs a week.

[uponit7771]

15. No, it dropped cause the BLS subtracted from the sample pool AGAIN...Im'a wait

[bigdarryl]

2. I guess this is a mixed bag with the drop but I wish there were more jobs created

[liberal N proud]

5. But the funny thing is (or sad depending on how you look)

The talking heads were all blabbing that the unemployment rate would continue to be above 10% which they all were saying would hurt the Democrats in the fall with a closer that "this is an election year."

So a drop, no matter how small, snaps that.

[Rosa Luxemburg]

6. but the talking head won't tell people about any improvement

[CanonRay]

9. Absolutely meaningless statistic

Why even put this out? So we lost 20K jobs, plus the 150K or so new workers entering the market,and unemployment went DOWN? And the article itself says that "discouraged workers" are up. So if we dump a couple of hundred thousand workers off the rolls, or course unemployment will go down. Like I said, why even bother counting the beans, if you are only going to count one color bean?

[DrToast]

10. Reading comprehension fail!

Jeez...I even tried to head off these posts. Can't fight the Debbie Downer.

[Kurt_and_Hunter]

14. The top-line number is based on the household survey (+110,000)

Payroll survey down 20K, household survey up 110K.

Anybody's guess, but if you average the two +45K net jobs and a lot more people disappeared from the population=9.7%.

I think the top-line number is kind of bogus but it certainly seems likely that January was better than December.

[Robbins]

16. Jobs

Another sign the economy Is slowly recovering.If we had these signs under a Republican president the media would be saying how
great It Is.While I agree jobs need to pick up this interfears with the talking points the economy Is just terrable and
Democrats are ready for a bloodbath.