Job losses jar economy

The U.S. economy shed 159,000 jobs in September, marking the highest number of jobs cut since March 2003.
OCT 03, 2008
By  Bloomberg
The U.S. economy shed 159,000 jobs in September, marking the highest number of jobs cut since March 2003. It was the ninth consecutive month of lower payrolls, according to a report by the Department of Labor. The figure was more than double the 73,000 jobs that were cut in August and brings losses for the year to 760,000. "The report settled the argument as to if we are in a recession," said Alan Gayle, senior investment strategist for RidgeWorth Investments Inc. in Atlanta. “The [unemployment data] will relieve inflation pressures and it could open the door for the Federal Reserve to cut interest rates if they feel a need.” The unemployment rate remained at 6.1% in September, after it increased 0.4 percentage points in August from July's level of 5.7%. The number of unemployed people rose to 9.5 million in August and manufacturing jobs declined by 51,000. Retailers cut 40,000 workers and construction employment fell by more than 35,000. Yesterday, estimated initial claims for unemployment benefits during the one-week period ended Sept. 27 was revised upward to 497,000, an increase of 1,000. The average hourly salary rose by 3 cents to $18.17 per hour, up 0.2% in the 12-month period ending in September, following a gain of 8 cents in August. The average work week for production and non-supervisory workers on private non-farm payrolls fell by 0.1 hour to 33.7 hours.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave