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- Economy Adds 661,000 Jobs in September, Unemployment Falls to 7.9 Percent - Center for Economic and Policy Research
It would take us almost 18 months, at this pace of job growth, to make up that gap, and that does not even include the 130, 000 monthly job creation that would be needed to keep pace with the growth of the labor force. With several sectors, such as airlines and state and local governments, looking at another round of layoffs, the immediate picture does not look good. With more workers dropping out of the labor force and being faced with long-term unemployment, we are risking a large amount of long-lasting damage.
There is no evidence that generous unemployment benefits are making it difficult to find workers. The July employment report showed the economy adding another 1, 761, 000 jobs in July. This follows gains of 2, 725, 000 in May, and 4, 791, 000 in June, leaving the economy down 12, 881, 000 jobs from its February level. The unemployment rate fell from 11. 1 percent to 10. 2 percent, while the employment to population ratio (EPOP) rose from 54. 6 percent to 55. 1 percent. These gains likely overstate the true improvement from June, since the Bureau of Labor Statistics has largely fixed a misclassification problem that had caused unemployed workers to be counted as employed. The EPOP is still down by 6. 0 percentage points from February, which translates into 15. 6 million fewer people being employed. While most sectors added jobs, the leisure and hospitality sector accounted for a hugely disproportionate share of the gains. The 592, 000 new jobs in the sector were 41. 6 percent of the private sector job growth in the month.
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