Unemployment inched up in August

September 04, 2010|By Jane M. Von Bergen, Inquirer Staff Writer
  • Frank Pettinato of the Corporate Call Center Inc. in Blue Bell is flanked by Jo Ann Walborn (left) and Patricia Ward.

The nation's unemployment rate inched up to 9.6 percent in August as public and private employers, for the third straight month, laid off more people than they hired, the Department of Labor reported Friday.

Temporary workers hired by the federal government for the 2010 Census continue to skew the statistics, being responsible for a few months of job growth in the spring, and, now, for job decline as they finish their duties.

In August, payrolls dropped by 54,000, with government employment falling by 121,000 as 114,000 census workers were laid off. That pushed the overall jobs number down, offsetting a modest increase of 67,000 jobs in the private sector.

Story continues below.

Nearly 17,000 of the 67,000 additional private-sector jobs were also temporary, as employers continue to hedge their bets.

Among those 17,000 was Patricia Ward, an unemployed office manager who found work last month through a temporary staffing agency.

"There aren't enough jobs for the people who need them," said Ward, of Abington Township.

Ward is part of a wave of 700 new hires who will work at the Corporate Call Center Inc. in Blue Bell answering questions about Medicare during the fourth quarter.

The workers received training to qualify for an insurance-selling license, company president Frank Pettinato said. Those who passed the test were reimbursed for their training. Pettinato said he expected that most of the jobs would end in December, but at least the employees will have a license they can use elsewhere.

Wall Street responded positively to the report, which beat some forecasts. The Dow Jones industrial average closed up 127.83 points, its fourth straight day of gains.

The slight increase in the unemployment rate from 9.5 percent to 9.6 percent is actually good news because it reflects increased worker confidence in the job market. About 550,000 who had been sitting on the sidelines decided to look for work.

Most economists say the nation's businesses must create 120,000 to 150,000 jobs a month simply to accommodate the natural growth of the labor force due to increases in population and immigration.

Although payrolls have increased by 723,000 jobs since December, it would take years of sustained job growth, at 300,000 to 400,000 jobs a month, to begin to recapture the 8.4 million lost during the recession, which began in December 2007.

"Economic growth remains fragile," said Paul Ashworth, an economist at Capital Economics.

1 | 2 | Next »
|
|
|
|
|