Unemployment Approaches 10%
The U.S. unemployment rate [pdf] has broken the 9% barrier and now stands at 9.4% for the month of May 2009. This represents a 0.5 percentage point increase from the April 2009 rate of 8.9%.
The Bureau of Labor Statistics reported that job losses in manufacturing were steep, while losses in construction and service industries moderated. Selected highlights from the May unemployment report follow:
- The total number of unemployed Americans increased by 787,000, from roughly 13.7 million to 14.5 million.
- Since the start of the current recession in December 2007, seven million people have lost their jobs and the unemployment rate has almost doubled from 4.9% to 9.4%.
- Temporary employment grew by roughly 9% in May, from 8.7 million people to 9.5 million people. Since December 2007, temporary employment has grown 156%, from 3.7 million people.
- The number of long-term unemployed (27 weeks or more) increased by 268,000, from about 3.63 million people to 3.9 million people, a roughly 7% jump.
- Civilian labor force participation incrementally increased from 65.8% to 65.9%.
- Retail trade employment fell by 18,000, compared to a loss of 47,000 retail trade jobs in April. In contrast, manufacturing employment fell by 156,000.
Despite the dramatic monthly improvement in retail job losses, the overall unemployment picture remains grim. However, other recent economic indicators have been at least mildly positive. Consumers’ personal income grew in April 2009, although consumer spending decreased. In May, the Consumer Confidence Index improved by 14.1 percentage points, and the April Restaurant Performance Index hit 98.6, largely aided by impressively high future expectations of restaurant retailers.
On the negative side, U.S. retail sales declined 0.4 percentage points in April 2009.