November 5, 2010
IN SURPRISING TURNAROUND, ECONOMY ADDS 150K JOBS IN OCTOBER.... John Boehner likes to ask, "Where are the jobs?" This morning, the question was a little easier to answer.
The monthly employment picture from the Bureau of Labor Statistics, released the first Friday of every month, was starting to look repetitious. From June through September, public-sector losses offset private-sector gains, and the result was an employment picture that couldn't get its head above water. Today's report on October's employment numbers was supposed to be more of the same -- economists projected a gain of just 60,000 jobs.
Thankfully, the report was far more encouraging.
Employers added the most jobs in five months in October, with the education and health care sectors leading the way.
But the unemployment rate, measured by a separate survey of households, refused to budge. It remained stuck at 9.6 percent for the third straight month.
The Labor Department says its survey of employers showed a net gain of 151,000 jobs last month, the most since May. Wall Street analysts expected a smaller gain.
This was easily the most encouraging jobs report since April. The private sector, meanwhile, added 159,000 jobs, also the strongest since April, and the second best month since the beginning of the Great Recession in 2007. The public sector, which had hemorrhaged jobs over the summer, lost only 8,000 jobs, which obviously isn't good, but was better than it's been.
Also note, the numbers for August and September were both revised upwards significantly, putting the larger trend of recent months in a more positive light.
Right about now, there are countless Democratic campaign consultants screaming at their monitors, saying, "This report couldn't have come out last month?"
It's important to emphasize that the economy adding 151,000 jobs in October really is good news, but it's only a step in the right direction. Given the hole we're digging ourselves out of, coupled with population growth, the economy is going to have to generate much stronger totals to bring the unemployment rate down.
That said, this morning's report is a pleasant surprise, and offers some hope for the future. And if Fox News gives Republicans credit for this, I'm jumping out the window.
Once again, here's the homemade chart I run on the first Friday of every month, showing monthly job losses since the start of the Great Recession. The image makes a distinction -- red columns point to monthly job totals under the Bush administration, while blue columns point to job totals under the Obama administration.

—Steve Benen 8:55 AM
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I think it's safe to say that any uptick in jobs or the stock market is the direct result of new Republican leadership in Congress thanks to the overwhelming mandate of the electorate. It just goes to show that keeping taxes low and government programs unfunded was all we needed to turn the economy around.
I mean lookit. Three days after the Red Tsunami and our markets are up, people are getting back to work, and our gay soldiers have to keep their mouths shut. THAT'S leadership!
Or so we'll be told in 3...2...1...
Posted by: chrenson on November 5, 2010 at 9:02 AM | PERMALINK
Stay away from open windows, Steve. Fox Noise will spin it to such contortion that you'll die without jumping. Buckle up buddy...
Posted by: stevio on November 5, 2010 at 9:02 AM | PERMALINK
Maybe some of that $2 trillion the private sector has been sitting on for months is starting to trickle out in the form of new hires - now that's it's safe to help us help them to help themselves again.
Posted by: max on November 5, 2010 at 9:08 AM | PERMALINK
It is obvious to even casual observers that the improvements in the job markets and on Wall Street are solely because employers and investors knew that republicans were going to regain control of Congress!
Posted by: RepublicanPointOfView on November 5, 2010 at 9:11 AM | PERMALINK
Steve,
How 'bout reposting the chart with only the private sector?
Posted by: Daryl Cobranchi on November 5, 2010 at 9:12 AM | PERMALINK
Does this chart reflect the revisions or only the initially released numbers?
Posted by: Jim on November 5, 2010 at 9:24 AM | PERMALINK
Put the chart of just the private sector jobs which is different from all jobs.
Posted by: Maritza on November 5, 2010 at 9:25 AM | PERMALINK
Heard on NPR this morning that we'd need 250,000 jobs created each month for ten years before we'd drop to an unemployment rate of 5%.
This is going to be awhile.
And it's all the bankster's fault, they're getting away with what they did--and what they continue to do. Faith in the rule of law is evaporating because of it. And when that faith goes away, look the hell out.
But look over there, it's a dark person!
Posted by: terraformer on November 5, 2010 at 9:28 AM | PERMALINK
You know very well that it's going to be, "Businesses anticipated GOP gains in the election, so they felt more confident and hired more workers."
Posted by: Speed on November 5, 2010 at 9:29 AM | PERMALINK
After a couple of days of severe depression, I woke up this morning thinking perhaps California is the answer to moving forward. The legislature there has been working on a single payer health insurance plan, they now have a dem for governor, it they pass the plan perhaps we will follow one state at a time, I know Vermonters want to. Also California dearly would love alternate energy, both of these initiatives would save the country a load of money.
Posted by: js on November 5, 2010 at 9:40 AM | PERMALINK
as a follow up to js' comment, vermont's newly elected governor, peter shumlin, is making single payer health insurance his top priority.
Posted by: just bill on November 5, 2010 at 9:56 AM | PERMALINK
Here's a plan to create job growth that both Democrats and Republican'ts can get behind:
Take the money AIG, GM and the banks are paying back and use that money to contract with private companies to tear down houses in communities with oversupply (Detroit, Las Vegas, Florida, etc.) Anyone with a mortgage will have it forgiven and the banks will get 20 cents on the dollar of what is owed from Uncle Sam. This will do a number of things.
1. Help the supply/demand ratio for housing causing house prices to rise or at least stabilize.
2. Put people to work in the hardest hit areas of the country.
3. Give the banks an opportunity to clean up their balance sheets
4. Give people mad at the banks a sense of some justice (the banks are going to lose money)
5. Republican'ts can get satisfaction that many people in the lower income brackets are having their neighborhoods destroyed
6. Dems get to put people to work and claim credit for saving the economy
Keep in mind that Detroit has already started tearing down houses.
Posted by: Gridlock on November 5, 2010 at 9:58 AM | PERMALINK
Where are the jobs? ~Beohner
They certainly werent created during 2000 to 2006. Furthermore whats an obstructionist care about jobs?
Posted by: Kill Bill on November 5, 2010 at 9:58 AM | PERMALINK
Sure it would have been nice to have the latest numbers come out before the election, but they would have been ignored by a Media bent on a No Jobs Under Obama meme.
If the Media had wanted to show the voters the numbers and your excellent graphs...they could have. They didn't. And remember this: these positive signs come despite 100% opposition by the Party that now controls the House. Think what might be the case right now if the Republicans had actually tried to help get us out of this mess.
Posted by: T2 on November 5, 2010 at 10:00 AM | PERMALINK
Three days after the Red Tsunami and our markets are up, people are getting back to ~Chris
The markets are up because of Bernankes QE which relieves stress in the assets markets and because speculators can borrow cheaply. Would the new leadership [actually they are representatives] like to take credit for rising food and oil prices?
Posted by: Kill Bill on November 5, 2010 at 10:01 AM | PERMALINK
But look over there, it's a dark person! -Terraformer
This reminds me of a Lincoln quote that Ive found useful lately:
Abraham Lincoln in 1864—“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.
corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.”
Now listen to the pundits and politicians and see how they use peoples prejudices.
So, I say, those who use peoples prejudices either for profit or political empowerment with the rational they are 'Saving America' are actually doing the opposite.
Posted by: Kill Bill on November 5, 2010 at 10:07 AM | PERMALINK
"And if Fox News gives Republicans credit for this, I'm jumping out the window."
Hope you're on the first floor, man.
Posted by: gifgrrl on November 5, 2010 at 10:35 AM | PERMALINK
"John Boehner likes to ask, 'Where are the jobs?'"
And I like to answer: "I think they're sitting on Mitch McConnell's desk. Why don't you take a stroll to the other side of Capitol Hill and talk to him about it?"
Posted by: dsimon on November 5, 2010 at 11:17 AM | PERMALINK