US Sheds 85,000 Jobs - Unemployment Remains at 10%

The US economy shed 85,000 jobs, more than expected by analysts in a sign that the US job's picture has still not fully turned the corner.

The US economy shed 85,000 jobs, more than expected by analysts in a sign that the US job's picture has still not turned the corner. Employment fell in construction, manufacturing, and wholesale trade, while temporary help services and health care added jobs. In December, both the number of unemployed persons, at 15.3 million, and the unemployment rate, at 10.0 percent, were unchanged. At the start of the recession in December 2007, the number of unemployed persons was 7.7 million, and the unemployment rate was 5.0 percent.

The latest report also revised November 09's numbers to show a gain of 4,000 payroll jobs. It was the first gain in nearly two years.

Still, the weak December numbers, at the height of the Holiday season do not bode well for a sustained and powerful recovery. Employers are still shedding jobs.

Still, the jobs numbers are clawing their way back to even territory after the devestating job losses of 2009. One year ago, in January 2009, 741,000 jobs were lost in one month.

This will provide the Fed with continued justification to hold rated down. Until these job numbers turn consistently positive, it's hard to see the Fed doing anything to increase rates.

Treasury yields and the dollar fell on concern that the jobs numbers show a weaker than expected economy.

Sam Cass
Sam Cass: Sam Cass, MBA, JD, University of Texas at Austin. Always a fan of Leonardo Da Vinci.

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