Unemployment Over 10% Now

[Rowan]

The U.S. unemployment rate unexpectedly jumped to 10.2 percent in October, breaching the politically sensitive double-digit barrier for the first time in 26-1/2 years, even though the pace of job losses slowed.

Job Losses

A Labor Department report showed on Friday that employers cut 190,000 jobs last month, more than the 175,000 markets had expected. Economists had looked for the jobless rate to rise to only 9.9 percent from 9.8 percent the prior month.

http://www.cnbc.com/id/33714693

[Beet]

I think it's clear now the problem is structural, not just cyclical. The trend that we saw in the last two recoveries where jobs lags everything else has just accelerated in a dramatic way. This was a very bad report.

- Top line job loss numbers above forecast (but modestly)
- Unemployment rate big jump
- Unofficial unemployment rate big jump
- Back to big birth / death adjustments
- Hours worked, which is supposed to lead job creation, unch. at record low

Pretty much the only good news here is that average earnings for those who have jobs rose slightly and Aug. and Sept.'s job loss numbers were revised downward.

This week there was another report in the Wall Street Journal of rather large cash hoarding by corporations. Their cost cuts, the resulting profits, and cash hoarding have been fueling a big part of the stock market rally, and shows why it has failed to trickle down to Main Street. This reinforces my conviction that further fiscal stimulus is needed, more targeted towards job creation.