Non-Farm Payroll Numbers So Bad that Even Larry Kudlow Will Need to Put Aside His Unbridled Optimism

The U.S. recession deepened last month as U.S. companies shed jobs at the fastest rate in more than 30 years, pushing the unemployment rate to its highest level in 15 years

Non-farm payroll number suggest that the U.S. recession is getting worse, with non-farm payrolls plunging by 533,000 last month - losses not seen since 1981-1982.  The downturn is much more severe that any downturn of anyone living, however, as the numbers were reached with alarming speed. The pullback demonstrated in the non-farm payrolls is broad-based, including manufacturing, construction and most service industries. Excluding a 7000 rise in government payrolls, private-sector employment would have plummeted even further.

The economy has lost more than 1.2 million jobs in the last three months alone following revisions to September and October that showed even steeper job cuts than first reported.

The numbers now are significantly worse than even the outlier downside economist predictions as recently as yesterday.

Economists now see unemployment going to 8% quickly, and the Fed driving interest rates down from its 1% level by as much as 50 basis points when it meets on December 16.

There is no silver lining here.  The economy is dreadful and getting worse.  People like Larry Kudlow need to put aside their unbridled optimism and get real.

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

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  • ktexas

    December 06, 2008

    Seems like we could see a spiral effect: more job losses, more foreclosures, more bank failures, tighter credit, etc....

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