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PAUL SANCYA / Associated Press
Job-seekers at a work fair in Livonia, Mich. The economy grew at a 3.5 percent annual rate in the third quarter, not fast enough to spur rapid hiring. Adding in people too discouraged to look for work or working part time, the jobless rate is 17.5 percent.
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Jobless rate rises to 10.2 percent in October

The numbers are remarkable: Nearly 16 million Americans are without work. The unemployment rate is 10.2 percent. And 190,000 more jobs were lost in October, an outcome worth cheering only when compared with the month-by-month carnage that has brought the nation its biggest employment crisis in 26 years.

There were some positive numbers in yesterday's Labor Department jobs report for October: Temporary hiring increased; it's considered a leading indicator of permanent hiring to come. And overtime hours edged up 12 minutes, as companies added time, if not people.

But those numbers do little to counter the effect of an economy that added 558,000 people to the ranks of unemployment last month and kept 5.6 million, more than a third of the unemployed, off the job for more than six months.

Among them is Janet Swift, of Northeast Philadelphia, a former human-resources manager at Kraft Foods, attending a breakfast yesterday morning by the Philadelphia Human Resource Planning Society.

"I honestly believe there are glimmers of hope," said Swift, who, after 17 years of experience, has been out of work for nine months. Still no job, but after months of getting close to zero responses to her resumes, she is getting some return calls.

"I've never experienced this in my life," she said. "It's going to take some time."

The Labor Department's report is the first since the government said last week that the economy grew at a 3.5 percent annual rate in the July-September quarter, the strongest signal yet that the economy was rebounding. But that isn't fast enough to spur rapid hiring, raising the specter of a jobless recovery. Factoring in people who were too discouraged to look for work or who are working part time because they couldn't get a full-time job, the unemployment rate was 17.5 percent in October. President Obama called the new jobs report another illustration of why much more was needed to spur business creation and consumer spending.

 

What it will take

"I will not rest until all Americans who want work can find work," said Obama, who yesterday signed legislation to extend unemployment benefits for laid-off workers.

"You need explosive growth to take the unemployment rate down," said Dan Greenhaus, economic strategist for the New York-based investment firm Miller Tabak & Co. L.L.C.

Greenhaus said the economy soared nearly 8 percent in 1983 after a steep recession, lowering the jobless rate 2.5 percentage points that year. But, he said, the economy is unlikely to improve that fast this time, as consumers remain cautious and as tight credit hinders businesses.

The reluctance to spend is reflected in the decline in retail employment. Nearly 40,000 positions were cut last month, particularly in sporting-goods and department stores. Even stores selling electronics failed to draw enough customers to sustain hiring. "People aren't finding jobs, as far as I can see," said John Dodds, director of the Philadelphia Unemployment Project, an advocacy group for the unemployed, "and it looks like it's going to stay that way for a while."

In October, temporary-help services added 33,700 jobs nationally, the biggest bump since the category began an upward trend in July. Employers tend to hire temporary and temp-to-perm workers before adding full-time slots.

Architects and engineers are still losing jobs. Because these professionals work at the start of construction and industrial projects, last month's decline of 7,700 jobs is evidence that companies are still either unable or reluctant to make major capital investments. At a leadership breakfast yesterday for 350 at the Union League, hiring managers said they were seeing some faint upward trends.

 

'A little fall-off'

"We're starting to recruit again, and it's a little while since we did that," said Allyson Adamusik, a director of global human resources at Thermo Fisher Scientific Inc., in the Philadelphia area. The company had laid off earlier in the year. Frank Powell, vice president of business development at Lee Hecht Harrison, a national company that provides employment counseling for laid-off workers, said: "We are seeing a little fall-off in revenues" as fewer people need his company's services.

"The first quarter was the strongest," said Powell, who works in Lee Hecht's Plymouth Meeting office. "It was being at the top of a very high mountain. We're still busy, but it's just fewer people."

 

The short straw

The Labor Department report showed continued declines in construction, manufacturing, information, leisure, and hospitality, while business and professional services gained, along with education and health services. Government hiring was flat.

Employment in financial activities dropped by 8,000. One of the lost jobs belonged to Vicki Brown, formerly a leadership-development specialist at PNC Financial Services Group Inc. She was laid off a week ago, the second time in this recession.

In June 2008, Brown, of Wilmington, lost a human-resources job at American International Group Inc. when the insurer went through its meltdown. She had worked there for more than 20 years.

Then, in November 2008, she landed the PNC job. "I was very lucky," she said. But that's over for now. "I pulled the short end of the straw."

Brown says she's optimistic because "there's a lot of pent-up demand, even though companies are reluctant to hire. Everyone is tearing their hair out from being overworked."

 


Contact staff writer Jane M.

Von Bergen at 215-854-2769

or jvonbergen@phillynews.com.

This article contains information from the Associated Press.

 

Comments   
Posted 07:20 AM, 11/07/2009
beermoney
Now THIS is change we can believe in!
Posted 08:00 AM, 11/07/2009
chrissmith
Hope and change! Whatever happened to the stimulus? Obama specifically stated that unemployment would stay below 8 percent. Haven't we learned yet that tax and spend policies don't stimulate the economy?
Posted 08:14 AM, 11/07/2009
MikeP
Thank God I no longer have to hear Bush saying "The fundamentals of the economy are strong." Obamma and the Democrats have avoided a total collapse of the global economy. Unfortunately, it will be another years or so before we see serious job growth. That's the extent of the damage that Republican policies have done to our country. Not enforcing regulation, tax cuts to the wealthy, unfair trade policies, big government spending, deficits, borrowing money from Communist China, expensive, bogus wars. Yup, that's do it. No wonder registered Republicans are down to 20%. Every one of Republican core principles were put into place during the Bush administration and we saw the result. And guess what? They haven't changed a single policy.
Posted 08:19 AM, 11/07/2009
MikeP
We aslo learned that deficit and spend doesn't work thanks to Republicans. Bush and the Republicans increased overall spending from 2000 - 2006 more than any administration in the history of the USA. They gave the wealthy huge tax cuts and funded it all by getting a loan with interest from Communist China. And that was when the economy was strong and their was no justification to increase spending. And we got nothing for it. Just flushed it down the toilet. I'd rather pay for spending with taxes while the spending is going on than borrowing money and now have to pay interest too. How will we pay our debt off? Taxes. It's the same things as a tax increase. We just stuck our kids with the bill. Anyone who would ever vote for a Republican again after this is a morone.
Posted 08:26 AM, 11/07/2009
beermoney
Hey Mike, I guess you advocate the Democrats doing the same thing to the entire Country that a guy like Jon Corzine has done to the State of NJ then right? Highest taxes in the Nation, high unemployement and crushing taxes on small business right?? Not to mention the constant budget deficit we face.You are right on one thing though..Bush spent tax money like a true Democrat. Certainly not a "fiscal conservative" like he campaigned on..Therefore, guys like you should have LOVED him for that! You may want to think again about thumping your chest about the demise of the Republicans. Just this week the "minority" party in NJ had its candidate elected Governor. Thats says something about how happy people are about your Democrats.
Posted 08:47 AM, 11/07/2009
Kunta Kente
Whoever controls the blog for this is racist. My name is Kunta Kente and you guys never post my blogs because of my name. But yet you would post blogs of people who's screen name is "average white boy'. YOU PEOPLE WHO RUN THIS BLOG IS RACIST RACIST RACIST RACIST.
Posted 09:41 AM, 11/07/2009
kelprod1
One cannot support Obama and his fellow congressional band of thieves all out assualt on the free market and American industry- and also expect that free market and American industry to bear the fruits of employment, investment, wealth creation, growth and prosperity. The current economic agenda coming out of Washington DC is the PERFECT counter balance to a thriving economy. The more the democratic leadership demonizes words like "profit", "success" and "wealth" the more likely unemployment will continue to skyrocket. In order to have an employee, you need to have an employer..and the more anchors, chains and handcuffs Obama puts on employers, the less they will hire and invest in growth. Those anchors include higher taxation, cap & trade, health care mandates, regulation and mandating. Obama and his congressional band of thieves believe that business leaders are so stupid they would fund those extra governmental expenses out of profit- that is ridiculous. They fund them out of the expense side by cutting human resources and investment in growth. Any wonder Obama has risen unemployment by a full 4 % points in only 12 months, despite borrowing almost $1T of Chinese political bribe cash (stimulus)? Wake up. No socialist visionary is ever going to grow a free market....especially ones like Obama, Pelosi & Reid. Aint happening folks, no matter how much of our grandchildren and great grandchildren's cash they steal.
Posted 10:35 AM, 11/07/2009
SilverCTS
Obama is making things worse.
Posted 11:38 AM, 11/07/2009
tr88
Where is my green job?
Posted 12:02 PM, 11/07/2009
NJsux6569
When can the anointed one start being held accountable?
Posted 12:12 PM, 11/07/2009
Genghis
Mike P and Kunta Kente are "morone"s.
Posted 12:31 PM, 11/07/2009
xi_lives
The so called Stimulus Bill was an abject failure and proof positve for the upteenth time that Keynesian Economics doesn't work.
Posted 01:10 PM, 11/07/2009
SilverCTS
That stimulus package is the biggest, most expensive failure ever. xi_lives, you're right, Keynesian Economics doesn't work.
Posted 02:06 PM, 11/07/2009
John Gualt
This is exactly what I have been telling anyone that would listen for the past 3 months. The system of dropping people off of the unemployment rolls after a short time yields a totally phony number. They say "but that's the way Bush did it". Under Bush we had full employment. If someone did not find a job after a couple of months the chose not to work. When we have huge unemployment and there are no jobs it yields a false number! I am well over 60 and I have never seen things so bad in my lifetime! Almost everyone I know has been affected by the Obama Disaster. Many of my friends have been completely wiped out after a lifetime of hard work. This is also what Obama and the other Chicago communists want. Their program is to bankrupt the USA with social and health expenditures. They will be in control, to rewrite the rules in every aspect of the way we live. These are not simply liberals. They plan on wiping out any opposition.
Posted 02:22 PM, 11/07/2009
John Gualt
How's all that moronic "Hope and Change" working out for all you fools that voted this guy in...just so you wouldn't be called a racist. Man, talk about your useful idiots!
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