Deller's two cents: "got nothin'" Such a thing as a "jobless recovery"? Been looking at some cross state data, Wisconsin is not doing all that poorly. Compared to Michigan we are doing pretty well.
Economic Week in Review:
The latest employment figures disappoint October 08, 2010
Despite welcome news that service-sector activity expanded in September, the week ended with a downbeat employment report. Instead of an expected no-growth September, the report showed a weak gain in private-sector jobs wiped out by a decline in public-sector employment, for a net loss of 95,000 jobs. For the week ended October 8, the S&P 500 Index rose 1.6% to 1,165 (for a year-to-date total return-including price change plus dividends-of about 6.1%). The yield of the 10-year U.S. Treasury note fell 13 basis points to 2.41% (for a year-to-date decrease of 144 basis points).
More jobs were lost in September than expected
The U.S. economy lost 95,000 jobs in September, worse than economists' expectation that employment would remain unchanged. Private-sector jobs increased by 64,000-a feeble amount by economists' standards-and jobs in the public sector declined by 159,000. The federal government shed 76,000 jobs, as work on the Census wound down and temporary staff were let go. State government jobs fell by 7,000 and local government jobs by 76,000-a reaction to a recession-induced strain on state and local government finances.
September's unemployment rate remained unchanged at 9.6%, although it had been expected to edge higher. The size of the labor force-people working or looking for work-changed little, as many potential but discouraged entrants remained on the sidelines.
Service sector activity jumps
The U.S. service sector-which makes up most of the jobs in the economy-unexpectedly expanded in September, according to a gauge of nonmanufacturing business activity released by the Institute for Supply Management (ISM). The index, which was expected to remain unchanged, jumped to 53.2 from 51.5 in August, a result that was encouraging given the slow pace of economic growth and the recent declines in ISM's companion index of manufacturing activity. (An index reading over 50 indicates growth.)
Factory orders dip
Orders for manufactured goods declined 0.5% in August, a shade more than expected and the third decline in four months. The report was consistent with recent data showing a slowdown in manufacturing sector growth, although shipments of nondefense capital goods (excluding
aircraft) rose 5.1%.
Credit balances drop
Consumer credit balances fell $3.3 billion in August, continuing their steady descent since January of this year. Demand for revolving credit has been consistently weak as consumers pay down balances and boost savings rather than accumulate new debt. However, nonrevolving credit balances rose slightly, reflecting a modest recovery in new auto sales.
The economic week ahead
Reports begin Tuesday with the release of minutes from the latest meeting of the Federal Open Market Committee. Thursday features the Producer Price Index and international trade figures, followed Friday by reports on consumer prices, retail sales, and business inventories.
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Steven C. Deller
Professor and Community Development Economist Department of Agricultural and Applied Economics
515 Taylor Hall --- 427 Lorch Street
University of Wisconsin-Madison/Extension Madison, WI 53706
608-263-6251
"I started out with nothing and I have most of it left."
Seasick Steve
