Analysis: Bureau of Labor Statistics Report - August 2009

August 7, 2009>
To: MRINetwork Owners>

From: Seamus Kelleher, Director of PR and Internal Communications >
Re: Bureau of Labor Statistics Report (August 2009)>

The Bureau of Labor Statistics published its employment numbers for the month of July this morning. We asked Kitchen PR to put together a short summary and analysis of the numbers.>

An Analysis of Today's Bureau of Labor Statistics (BLS) Report >

The full report can be seen here: http://www.bls.gov/news.release/empsit.htm.>

In July, U.S. employment fell by a less than expected 247,000 jobs, according to the Labor Department this morning. Meanwhile, the unemployment rate fell from 9.5 to 9.4 percent, its first drop in almost a year. While there are figures underneath today's headlines that show a more mixed picture, a series of unexpectedly positive employment indicators, including steep decreases in unemployment claims yesterday, may be the jump-start that is needed to spur recently stalled consumer confidence.>

The unemployment rate for management, business, and financial operation occupations, remained relatively steady at 4.9 percent, up from 4.8 percent in June. The unemployment rate for other professional and related occupations, however, jumped from 5.1 to 6 percent after a similarly sized jump last month, most likely the result of new graduates entering the still stagnant job market.>

Yet, after the last eight months, stagnation is an improvement. Across all industries, losses were-compared to recent history-approaching flat, and some showed their first positive gains in months. Real estate leasing agencies added 300 jobs, scenic and sightseeing transportation firms added 800 jobs, gas stations added 500, while drug stores added 1,600 jobs. Accounting and bookkeeping firms added 4,000 employees to their ledgers and computer systems design related services positions increased by 7,900.>


Temporary staffing levels, often thought of as a harbinger of employers adding full-time staff, dropped by only 9,800 positions after losing more than 30,000 in June and more than 50,000 in April. The average workweek also increased by .1 to 33.1 hours, its first increase since last August. >

Job creation of course must still turn positive, and the economy must improve enough to absorb the millions of job losses and new entrants over the last 18 months. Yet, the effect of a decreasing unemployment rate on a population's psyche is hard to overemphasize. As those currently employed stop worrying as much about their jobs, a savings rate now topping 5 percent will start to fall, consumer spending will increase, and slowly, natural, un-stimulated growth will return.>


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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.