September Job Loss Report Sobering – Worse Than Expected

It seems that every time the country starts to feel hopeful about the economy, we get another sobering job loss report to dash our spirits. After the slower-then-expected job loss report in August, economists were predicting the end of the recession by year’s end. Now, economists — and even the President — are warning us to brace for an even longer haul.

According to the ADP National Employment Report, 254,000 jobs were lost in September — up from the 200,000 layoffs economists had been expecting. While the layoff rate was the smallest since July 2008 (a bright spot for sure), experts are now predicting at least several more months of continued job losses.

Hardest hit last month were jobs in the service sector (103,000 jobs), manufacturing (74,000 jobs), and construction (73,000 jobs).

In September, the unemployment rate creeped up a tenth of a percentage point as well, to 9.8%. And economists explain that this number is not fully accurate, since it does not account for the half a million out-of-work Americans who have given up looking for a job altogether.

In order for the U.S. to begin lowering its unemployment rate, our private sector needs to add at least 150,000 to 200,000 new jobs each month — i.e. a net gain of more than 400,000 jobs from September’s report.

If you are looking for a job in this current market, there is no doubt that these are discouraging times. Starting next week, I will be running a series on successful work-at-home ventures for those of you who are looking to increase your income streams without having to commute. Are you a successful home-based entrepreneur? I’d love to hear from you. Send me an email and I will be delighted to share your story with our readers!