Business

Unemployment: Worst rate in 26 years

By DEE DePASS, Star Tribune
Last update: November 6, 2009 - 9:34 PM

For the first time since 1983, more than 10 percent of American workers are jobless.  

The unemployment rate moved into double-digit territory in October, continuing a long upward move that began before the financial markets froze up a year ago. And it looks increasingly like the job market will be the last aspect of the economy to move out of recession.  

Minnesota's jobless rate -- 7.3 percent in September -- is expected to worsen when the state reports its October number on Nov. 19.  

"We would not be surprised at all to see the unemployment rate rise. In fact we are expecting it," said Kirsten Morell, spokeswoman for the Minnesota Department of Employment and Economic Development (DEED).  


Nationwide, the number of jobless rose to 15.7 million in October, as nonfarm payroll jobs fell by 190,000, according to the Bureau of Labor Statistics. Job losses were heaviest in the manufacturing, construction and retail areas. The lone bright spots were an increase in temporary hiring, long considered a precursor to permanent jobs, and a revision to the numbers for August and September showing layoffs weren't as severe then as initially thought.  

But the job reports remain a pessimist's smorgasbord. The jobless rate, 9.8 percent in September, was 10.2 percent for October. And it would be closer to 17.5 percent if certain groups were factored in, such as the estimated 2.4 million workers who became too discouraged to look for work anymore in the four weeks prior to the survey, or the 9.3 million working part-time because they can't find full-time work.  

The estimated number of "discouraged" workers who no longer count in the survey jumped in October by 808,000 people.  

People start looking again  


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