The unemployment rate jumped to 6.1 percent in August, the highest level since September of 2003. The establishment survey showed the economy losing another 84,000 jobs in August. With downward revisions to data for the prior two months, the economy has lost an average of 81,000 jobs over the last three months.
Virtually all the data in the household survey indicates that the labor market is weakening at a rapid pace. The 6.1 percent unemployment rate is only 0.2 percentage points below the 6.3 percent peak reached in June of 2003. The employment to population ratio (EPOP) ratio fell to 62.1 percent, only slightly above the 62.0 percent low hit in September of 2003.
Unemployment rose among almost all demographic groups, but women were hit hardest, with a rise of 0.7 pp to 5.3 percent.
[snip]
The only sectors that continue to show healthy job gains are health care, which added another 26,900 jobs, and state and local governments, which added 18,000 jobs. Job growth in both of these sectors is likely to fade as state and local budget shortfalls force cutbacks.
Now that's funny, my job was in both state and (arguably) health care, and here I am. Ha ha ha.
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