Unemployment Rate Is At 9.0%, Needs To Keep Trending Down (Charts)

During the month of October, 80,000 jobs were added and the unemployment rate ticked down 0.1% to 9.0%. The U6 unemployment rate, or underemployment rate, is still high at 16.2%, but down from 16.5% in September. The market wasn't pleased about this data, or maybe it was combined with the Greek confidence vote and rise in Italian government bond yields. $SPY is down 1.61% at 124.23, pulling back at ceiling resistance; EUR/USD is down 0.58% at 1.37220; and I'm watching Jeffries Group (JEF), which is down 4.08% at 11.52 (down over 6% at one point). The one positive thing I see on the unemployment rate chart is it's been trending down since the 2009 peak. What we don't want to see is the rate spike towards 10% again during a new recession. Track the unemployment rate at bls.gov.

Chart of Unemployment Rate (BLS.gov)

Chart of Non-Farm Payrolls (BLS.gov)

Nonfarm payroll employment continued to trend up in October (+80,000), and the unemployment rate was little changed at 9.0 percent, the U.S. Bureau of Labor Statistics reported today. Employment in the private sector rose, with modest job growth continuing in professional and businesses services, leisure and hospitality, health care, and mining. Government employment continued to trend down.

Household Survey Data

Both the number of unemployed persons (13.9 million) and the unemployment rate (9.0 percent) changed little over the month. The unemployment rate has remained in a narrow range from 9.0 to 9.2 percent since April. (See table A-1.)" (source)

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