U.S. Unemployment Rate Climbs to 9.8% as 263,000 Jobs Lost in September

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Researched by Industrial Info Resources (Sugar Land, Texas)--While the monthly unemployment situation has certainly slowed from the months when more than 600,000 jobs were lost, the job losses have continued into September. The unemployment rate has continued to creep upward, rising from 9.7% to 9.8% in September, not a large leap, but an increase nevertheless. The total jobs lost for the month topped 263,000 in September, almost 50,000 more jobs than the 216,000 jobs lost in August.

Since the beginning of the recession, 7.6 million people have lost their jobs, doubling the total unemployment figure to 15.1 million in the United States. In addition, the number of people completing temporary jobs in September increased by 603,000 people, raising the total people in this category to 10.1 million. Long-term unemployment, a category that consists of people who have been without a job for 27 months or longer, increased by 450,000 in September, bringing the total to 5.4 million people. Of the total unemployed in September, 35.6% fell into this last category.

These latest figures indicate that although the total job losses each month are staying low, the number of people who remain unemployed is not improving, especially when one considers those who have been looking for new jobs for 27 months or more. While new jobs are obviously being created, there are simply not enough to go around, and with too many qualified people looking for work, the overall picture is not changing.

On the manufacturing and construction jobs front, the numbers showed an improvement of sorts in September. While in August, 65,000 construction jobs were lost, only 64,000 construction jobs were lost in September. Non-residential and heavy construction jobs accounted for the majority of these losses. On the manufacturing side of the equation, 51,000 jobs were lost in September, a significant decrease from August's 63,000 job losses. However, although these monthly numbers are reduced when you look at the 161,000 manufacturing jobs that were lost on average each month between October 2008 and June 2009, the total manufacturing jobs lost since the beginning of the recession has grown to 2.1 million.

The overall jobs situation appears to be improving nationwide. Companies are beginning to loosen their pocketbooks and invest once again, albeit cautiously at the moment. This will add more permanent skilled jobs to the market in the months to come, not to mention the construction jobs that will be associated with these expenditures. As we near the end of 2009, construction activity will probably slow down, simply because winter is traditionally a slower time for the building and construction sectors.

The outlook for 2010 appears to be brighter, however. The worst of the recession is apparently finished, and companies are considering increased investments and expansions in 2010. While 2009 was a year of much consolidation, restructuring and bankruptcy across the country, 2010 shows signs of being a year of recovery, which will mean more jobs available in the coming months.

The federal government's beginning to spend more of the promised stimulus money on projects that put people to work would help the unemployment situation significantly. One of the major problems with the stimulus bill has been the amount of red tape involved getting stimulus-related projects under way. This has hampered the efforts of those who could help create more jobs.

Across the country, 2010 should be a year of growth, and with growth comes jobs. When prime construction time reaches the country, namely by March or April 2010, a great deal of new jobs could become available. Initially, this would be in the construction sector, but as these projects are completed, more manufacturing-related jobs to fill the newly created facilities would become available.

The next six months will be telling for those who keep close tabs on the jobless situation in this country. To accurately gauge how the jobs market will look in the early part of 2010, one will have to also track planned project expenditures across the spectrum of industries. While the outlook for 2010 is positive in regard to companies' beginning to spend again, the jobs situation will take much longer to clean up.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.