Unemployment in SeptemberThe U.S. job market continued to move sideways in September. The world's largest economy created only 64,000 private sector jobs last month, the U.S. Labor Department announced Friday. That private sector increase was below economists' expectations.

Overall, the economy lost 95,000 jobs in September after factoring in the loss of 159,000 government jobs, including 77,000 once-in-a-decade U.S. Census worker jobs. A Bloomberg survey had expected the economy to lose 8,000 jobs total in September but to add 85,000 private sector jobs, after a loss of about 130,000 Census and other government jobs.

The previous two months saw a revised, 15,000 increase in the number of jobs lost. August's total was revised to a loss of 57,000, slightly worse than the previously estimated 54,000. And July's number was revised considerably more, to a loss of 66,000 from 54,000.

Stuck at 9.6%

One unqualified bright spot in the September report: August's private sector job total was revised higher to a gain of 93,000, considerably better than the previously estimated 67,000 increase.

The unemployment rate remained the same in September at 9.6%, but that stat still puts the post-financial-crisis recession in the record books, and not in a good way. The U.S. unemployment rate has now equaled or exceed 9.5% for 14 consecutive months -- one month longer than the previous record during the 1982-1983 recession. This is the longest period of elevated unemployment since the U.S. Labor Department started keeping monthly records 1948.

Unemployment chartSeptember's job report -- the last one before November's congressional election -- probably will do little to change voter attitudes. Most voters have already made up their mind by now, and consistent with previous behavior, they're blaming the party in power in Washington for the nation's high unemployment rate. The Democrats are expected to lose about 40 seats in the House and about six to eight seats in the Senate, the former shifting control of the House to the Republican Party.

September's tread-water job report probably won't change the U.S. Federal Reserve's stance toward the economy. At its next meeting in November, after Election Day, the Fed is likely to implement the second phase of its quantitative easing -- the so-called QE2 -- to keep credit markets liquid and to help stimulate a U.S. economy that's growing too slowly.

U.S. GDP slowed from a 3.7% growth rate in the first quarter to 1.7% in the second quarter -- a rate that Fed Chairman Ben Bernanke has termed too low.

Bernanke isn't the only influential official to see the trouble with a tepid recovery. Northwestern University Economist Robert J. Gordon, a member of the National Bureau of Economic Research's (NBER) committee that determines the dates of business cycles, estimated that the U.S. economy needs annual GDP growth of 2.5% just to prevent the high 9.6% U.S. unemployment rate from rising, The New York Times (NYT) reported. So, the recession's end in June 2009 isn't good enough. The economy has to grow better than Gordon's 2.5% pace and add about 100,000 to 125,000 jobs per month -- or the unemployment rate will rise.

In September, the food services sector added 34,000 jobs, professional/business services added 28,000 -- with most of those being temporary jobs. Health care added 24,000 jobs, and mining added 6,000. The manufacturing, wholesale trade, retail, transportation, warehousing, information and financial activities sectors were little changed in the month, the Labor Department said.

On the downside, in addition to the loss of 159,000 government jobs -- including 77,000 Census workers and 76,000 local government jobs -- the construction sector lost 21,000 jobs.

Average hourly earnings increased 1 cent to $22.67 per hour. The average workweek for all employees was unchanged at 34.2 hours. A 0.1 hour increase in the workweek adds about 100,000 jobs to the economy.

September's report provided further evidence of a U.S. economic recovery in search of a turbocharger. So far, like the usual boosters -- housing and consumer spending -- don't have nearly the oomph that they did in past recoveries past.

All this underscores the importance of business executives and policymakers in Washington and in state capitols working together to find new engines of growth. That's literally the most important job for this country now.

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October 10 2010 at 4:08 PM Report abuse +2 rate up rate down Reply

I's just like to know, with so many unemployed, and so many bail-outs for car companies, big banks and stock traders, why does the u.S government have to make such a massive greedy profit on federal student loans? They charge people interest on interest, then capitalize that interest to call it "principal" and add more interest on interest...and then they wonder why so many people are defaulting on their student loans?! That's easy! Because Uncle Sam is suddenly in the loan sharking business and we're the ones left hoolding the bag. Funny, we're also the very same people who paid for those bail-outs!! You'd think, with all the big players getting bail-outs and amnesties, the government would back off the little guys like us. Guess fairness and decency has gone out of style these days?

October 09 2010 at 9:08 PM Report abuse rate up rate down Reply
Gary VanDeCar

Bottom line here folks? that the obama Admministration would need to create about 700,000 jobs a month roughly If we are to get back to our pre-Recession level under Geaorge BushJr! And taxing the 3% Wealthy In this country and nearly 14 trillion Dollar deficit that's likely not going to happen and until the liberal Left and the Concervative republicans can learn to work In harmony with each other for the good of the american people nothing will change and i'm saddened for our country!!!

October 09 2010 at 5:27 PM Report abuse +2 rate up rate down Reply

TARP failed unless you are a Wall Streeter. Take the $400 Billion & keep producing businesses (inclued services) liquid & there would NOT have been this disaster! A different disaster BUT for Wall Street. TARP failed, but Govt. says it & Stimulus worked BECAUSE it could have been worse! How--if the workers & producers are working--The bankers had their millions to retire on--so they would have been OK. TARP & STIMuLUS Fialed----prove otherwise.

October 09 2010 at 4:15 PM Report abuse +2 rate up rate down Reply
1 reply to ksmwtm's comment
Gary VanDeCar

for one reason TARP was very mainstream it went to people who really did'nt need it It's did'nt go to the most people who could have really used it and they did'nt care Bail out the Idiot's that put us In this mess to begin with that's obamas agenda It's just another proof of obamas radical agenda and it will cost the dems dearly In November Obama does'nt care about this country one Iota hes to extreme and very dangerous hes just like his radical father and we must pay the price for it and any one who voted for this Idiot I hope you can live with yourselfs because I cant!!!

October 09 2010 at 4:25 PM Report abuse +2 rate up rate down Reply

Yep that trillion dollar bailout really helped. If nothing was done we would be in about the same position.

October 09 2010 at 4:08 PM Report abuse +1 rate up rate down Reply
1 reply to Bill's comment
Gary VanDeCar

Your very right but the Progressive Left want you to think that we would be In a Depression If we had'nt passed It and that storey has no merit since theres no proof of that at all And if we dont curb our wreckless spending now we will be bankrupt and we will be In a depression!!!

October 09 2010 at 4:12 PM Report abuse +3 rate up rate down Reply

For decades Congress & Clinton, Bush & now Obama have FAILED***FOR THE PEOPLE! Congressional Oversight Committes***FAILED In Fla. Governors & Senate races all we hear is What A CROOK 'their' opponent is! What about Substance in Platforms? Not what are THEY going to do TO US, BUT What are YOU going to do FOR US? And I do not mean Obama\Biden 'Bleepen' Joe SPIN--" WE are on the right track for 500,000 jobs a month this summer"! A net 500,000 jobs have not been created this year! Give me a break!

October 09 2010 at 2:40 PM Report abuse +1 rate up rate down Reply
Gary VanDeCar

O'bama just does'nt get It? Does this lunatic really think that with a nearly 14 trillion dollar deficit that taxing only the rich will get us out of this jam! He's a fool no matter what happens the Middle Class will have to pay there fair share too the rich by themselves could'nt handle this debt there no way the Democratic party have always be the spenders there Ideas are to spend this country into the crapper and say that capitalism does'nt work so that obama can bring his socialist Idesa here this rhetoric is extremely dangarous, If this lunatic gets four more years our national debt by 2016 could reach nearly 21 trillion dollars we can afford to bankrupt our country or leave this burden on our children and grand chilren Vote No to obamas radical agenda on Nov 2nd!!!

October 09 2010 at 2:09 PM Report abuse +1 rate up rate down Reply

To bad the economy didn't lose 95,001 jobs...with the last job loss being O'Bummer.

October 09 2010 at 1:40 PM Report abuse rate up rate down Reply
Darren Berry

have no fear the holiday season is here. all of the companies will be hiring for temporary positions and the obummer will have a good pile to shove in front of all of the people in the usa. another money scheme to b.s. the us into thinking that he is helping the people. we are in the land of the free after all. just not the people who need a permanent job. maybe the presidency showld be only 2 years not 4.

October 09 2010 at 1:37 PM Report abuse +1 rate up rate down Reply

I thought,The Recession was over?What a bunch of BULLSHITTERS...

October 09 2010 at 12:55 PM Report abuse +5 rate up rate down Reply
1 reply to bathrbuddy's comment

It's recovery summer according to O'Bummer & O'Biden

October 09 2010 at 1:34 PM Report abuse +2 rate up rate down Reply