Posted by Larry Doyle on November 7th, 2008 4:50 PM |
The highly anticipated October employment report came in as follows:
|unemployment rate||6.5% up from 6.1%|
|non-farm payrolls||-240k jobs vs consensus estimate of -200k|
|September revision||a loss of 284k jobs from initial estimate of 159k!|
|Labor costs||+3.5% year over year|
Jobs were lost in virtually every sector: manufacturing, construction, and especially the service sector, which had been the sector that provided job strength over the last few years.
In summary, there is nothing to like about this report and it is likely to get worse. Estimates on unemployment rate range from 7% to 9% by the middle of 2009.
Read more here on how the “Economy Sheds Jobs.”
Goldman Sachs, which had the most accurate call on the employment report, is now calling for a -3.5% GDP for 4th qtr 2008 and a -2% for 1st qtr 2009. (more…)