Payrolls fall 240,000 in October; September losses much worse than thought
WASHINGTON (MarketWatch) - The U.S. unemployment rate jumped to a 14-year high of 6.5% in October as nearly a quarter million jobs were lost, the Labor Department reported Friday.
U.S. nonfarm payrolls fell by 240,000 in October following a revised decline of 284,000 in September, which was the largest job loss in seven years.
So far in 2008, a total of 1.18 million jobs have been lost, with 651,000 coming in just the past three months.
In October, unemployment increased by 603,000 to 10.1 million, according to a survey of households. The number of workers forced into part-time work rose by 645,000 to 6.7 million.
The last time the unemployment rate was as high as 6.5% was in March 1994.
The October employment report was much worse than expected. Economists thought the jobless rate would rise to 6.3% from 6.1% in September, and expected job losses of around 210,000 in October.
The discouraging report should add to selling pressure on Wall Street, which has already suffered the largest back-to-back declines as fears about global recession rise.
An alternative gauge of unemployment - which includes discouraged workers and those whose hours have been cut back to part-time - rose to 11.8% from 11%.
Total hours worked in the economy fell 0.3% in October and is down 1.7% in the past year. The average workweek was steady at a record low 33.6 hours.
Job losses were deep and widespread across industries, according to the survey of work sites. Of 274 industries, 37.6% were hiring in October, the lowest since June 2003. The brightest spot continued to be health-care, which added 26,000 jobs in October. Government added 23,000 jobs.
Goods-producing industries cut 132,000 jobs. In manufacturing, 90,000 jobs were lost, including 27,000 due to a strike at Boeing Co. Of 84 manufacturing industries, 27.4% were hiring.
Construction lost 49,000 jobs.
In the services, 108,000 jobs were lost, including 38,000 in retail, 24,000 in financial services and 51,000 in temporary-help jobs.
