PAnews.com, Port Arthur, Texas

News

November 2, 2012

US economy adds 171K jobs; rate rises to 7.9 pct.

WASHINGTON (AP) — U.S. employers added 171,000 jobs in October, and hiring was stronger in August and September than first thought. The unemployment rate inched up to 7.9 percent from 7.8 percent in September.

The Labor Department’s last look at hiring before Tuesday’s election sketched a picture of a job market that’s gradually gaining momentum after nearly stalling in the spring.

Since July, the economy has created an average of 173,000 jobs a month. That’s up from 67,000 a month from April through June.

Still, President Barack Obama will face voters with the highest unemployment rate of any incumbent since Franklin Roosevelt. The rate rose in October because more people began seeking work and were counted as unemployed. The government counts people without jobs as unemployed only if they’re looking for one.

The work force — the number of people either working or looking for work — rose by 578,000. And 410,000 more people said they were employed. The number of unemployed increased 170,000 to 12.3 million, pushing up the unemployment rate.

The increase in the work force “could be a sign that people are starting to see better job prospects and so should be read as another positive aspect to the report,” said Julia Coronado, an economist at BNP Paribas.

Investors were pleased by the news. The Dow Jones industrial average futures were flat before it came out at 8:30 a.m. EDT, and within 30 minutes they were up 54 points.

The yield on the benchmark 10-year U.S. Treasury note climbed to 1.77 percent from 1.72 percent, a sign that investors were moving money out of bonds and into stocks.

Friday’s report included a range of encouraging details.

The government revised its data to show that 84,000 more jobs were added in August and September than previously estimated. The jobs gains in October were widespread across industries. And the percentage of Americans working or looking for work rose for the second straight month.

The economy has added jobs for 25 straight months. There are now 580,000 more than when Obama took office.

But there were also signs of the economy’s persistent weakness. Average hourly pay dipped a penny to $23.58. In the past year, pay has risen just 1.6 percent. That has trailed inflation, which rose 2 percent.

The October jobs report was compiled before Superstorm Sandy struck the East Coast earlier this week and devastated many businesses.

The nascent housing recovery is finally generating jobs. Construction firms added 17,000 positions, the most since January. Manufacturers added 13,000 jobs after shedding workers in the previous two months. Professional services such as architects and computer systems providers also added jobs, as did retailers, hotels and restaurants, and education and health care. Government overall shed 13,000 jobs, after three months of gains.

The economy has picked up a bit in recent weeks. Americans are buying more big-ticket items, like cars and appliances. Auto companies reported steady sales gains last month despite losing three days of business to the storm in heavily populated areas of the Northeast.

Yet businesses remain nervous about the economy’s future course. Many are concerned that Congress will fail to reach a budget deal before January. If lawmakers can’t strike an agreement, sharp tax increases and spending cuts will take effect next year and possibly trigger another recession.

American companies are also nervous about the economic outlook overseas. Europe’s financial crisis has pushed much of that region into recession and cut into U.S. exports and corporate profits.

1
Text Only
News
  • treadmill-very-fast.jpg Tax deduction for a gym membership?

    April marks another tax season when millions of Americans will deduct expenses related to home ownership, children and education from their annual tax bill. These deductions exist because of their perceived value to society; they encourage behaviors that keep the wheels of the economy turning. So why shouldn't the tax code be revised to reward preventive health?

    April 16, 2014 1 Photo

  • Jamaal Charles' Football Camp

    April 15, 2014

  • Search teams will send unmanned sub to look for missing Malaysian airliner

    Teams searching for a missing Malaysian airliner are planning for the first time to send an unmanned submarine into the depths of the Indian Ocean to look for wreckage, an Australian official leading the multi-nation search said Monday.

    April 15, 2014

  • Teens trading naked selfies for mugshots

    Will teenagers ever learn? You think yours will. Maybe so. But it's likely that was also the hope of the parents of children who were so shamed by nude photos of themselves that went south - how else can they go - that they killed themselves.

    April 11, 2014

  • Boston doctors can now prescribe you a bike

    The City of Boston this week is rolling out a new program that's whimsically known as "Prescribe-a-Bike." Part medicine, part welfare, the initiative allows doctors at Boston Medical Center to write "prescriptions" for low-income patients to get yearlong memberships to Hubway, the city's bike-share system, for only $5.

    April 11, 2014

  • Screen Shot 2014-04-08 at 2.16.35 PM.png Are Americans smart to stop drinking diet sodas?

    Recent data from Beverage Digest suggest many are cutting back on diet sodas. Consumption of diet sodas fell more than that of sugary sodas in 2013. This raises two questions: Why is total consumption declining, and is drinking diet soda harmful to health?

    April 9, 2014 1 Photo

  • Screen Shot 2014-04-08 at 10.43.57 AM.png VIDEO: Amazing dance moves at NCAA title game

    Eye-catching action wasn't confined to the court at AT&T Stadium Monday night during the NCAA Championship game between UConn and Kentucky. This pair -- apparently a father and son -- delighted the crowd during a timeout with some synchronized dance moves.

    April 9, 2014 1 Photo

  • VIDEO: White House may ban selfies

    The White House wasn't too pleased after Red Sox player David Ortiz snapped a selfie with President Obama that was later used promotionally by Samsung.

    April 9, 2014

  • Investing more money in tornado research would be a disaster

    This week, the U.S. House of Representatives passed a bill that would require National Oceanic and Atmospheric Administration funding to focus on improving forecasts of "high impact weather events" like tornadoes and hurricanes "for the protection of life and property and the enhancement of the national economy."

    April 7, 2014

  • firefighters.jpg VIDEO: Firefighters sing song from 'Frozen' to calm girl stuck in elevator

    Firefighters in Reading, Mass., sing the Disney power ballad known by children everywhere -- "Let It Go" -- to calm a 4-year-old stuck in an elevator.

    April 7, 2014 1 Photo

Video
Facebook
Sports Tweets
Photos