Anyone else feel like they were just handed a Jelly of the Month membership – a la Clark Griswold in Christmas Vacation – right about now?
I suppose we expected too much, what with last month’s BLS Employment Situation Report revealing better-than-anticipated job growth in October and setting our hopes high for a similar outcome in November. But apparently, triple-digit job growth two months in a row is too much to ask.
I’ll just say it: the findings from November’s employment situation report suck. Maybe not November 2008 suck (remember those numbers? Those numbers sucked…), but the economy definitely lost momentum in the past month. By a lot.
After adding a whopping 172,000 jobs in October, the economy only added a fraction of that number in November: 39,000 new jobs, to be exact. Not only did this figure fall short of the 150,000 added jobs economists predicted, but it also fell short of the 120,000 jobs needed to keep the unemployment rate steady, which explains why it rose to 9.8 percent (up from 9.6 percent in October).
Some more findings from the report:
- Private employers added 50,000 jobs, the smallest gain since January.
- 15.1 million people were out of work in November.
- The number of underemployed (people working part-time who would prefer full-time jobs and those who have given up looking for work) was 17 percent.
- Job losses included retailers with 28,100 job cuts; factories with 13,000; financial firms with 9,000; and construction companies with 5,000. The public sector eliminated 11,000 positions, mostly reflecting cuts from local governments.
A Few Bright Spots
While this month’s report likely necessitates a new word for “disappointing,” there were some bright spots: health care industry added 19,000 jobs last month, and the mining sector added 6,000 jobs. Temporary jobs continue to show strong growth, with 40,000 added jobs in November and an overall increase since September of last year.
It’s also worth noting that the unemployment rate is a lagging indicator, and that job growth typically slows in November anyway. What’s more, consider the remarks from financial research firm Baird, in a statement released today: “The weight of evidence from the ADP report, initial jobless claims, both ISM reports, and the Beige Book (not to mention multiple contacts with recruiters) continues to point to an improvement in the macro economy and in employment,” and, “We think this report will be revised.”
So that’s something…right? *Sigh* Oh, Cousin Eddie, if only your heart “that’s bigger than its brain” could help us through this one.
Till next month, readers…