Economy Has 1.5 Million Fewer Jobs than Last Year

In October, the economy lost 240,000 jobs, according to the Employment Report released by the Bureau of Labor Statistics (BLS). Generally, about 150,000 new jobs are needed each month to keep the economy stable.

Year-over-year, employment declined by 1.5 million jobs, continuing the downward trend begun in March 2006. The last recession led to 29 months of job losses. However, the current trend is not quite as severe, which may mean it won't last as long. (See Google Spreadsheet Employment)

The unemployment rate rose to 6.5%, a total of 10.million, which is 2.8 million more than last year. Unemployment has steadily worsened since it's low point of 4.4% in October 2006. (Source: BLS, Employment Situation Summary)

The economy now has 683,000 fewer manufacturing jobs than the year before, continuing a two-year decline. Manufacturing jobs are a good leading indicator of overall economic performance, since they produce big-ticket items that consumers will put off buying when the economy starts to weaken. As the orders decline, manufacturers will hire less workers, and even lay off existing workers to keep costs low. In the last recession, manufacturing jobs started to improve before the overall job market. (See Google Spreadsheet Manufacturing Jobs)

For a history of employment reports since March 2007, read Employment Statistics History.

What This Means for You

Health care is really the only area that is growing, so if you are considering a change, now would be a good time to get some training for that field. If you have been laid off, then these articles will help you get a new job, so that you won't be a statistic in next month's unemployment report.

Articles from Alison Doyle, About.com Guide to Job Searching

• Prepare for a Job Search
• How to Be a Compelling Candidate
• Pink Slip? What's Next?

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