Job loss grows to 199,000 in Sept.
Sept. 11 attacks 'had little' impact, government says
By Rex Nutting, CBS.MarketWatch.com
Last Update: 9:17 AM ET Oct. 5, 2001
WASHINGTON (CBS.MW) - The economy weakened in September even before the impact of the Sept. 11 terror attacks could be felt in the job market, the Labor Department said Friday.
Businesses shed 199,000 jobs in September after cutting a revised 84,000 in August, according to a survey of businesses. The unemployment rate remained at 4.9 percent. Average hourly earnings rose 0.2 percent.
Average hours worked rose by six minutes to 34.1 hours. Total hours worked in the economy fell 0.3 percent. Hours worked in the manufacturing sector dropped 1.2 percent.
It was the biggest payroll loss since February 1991 when businesses shed 259,000 jobs.
FRONT PAGE NEWS
Stocks look to muster more gains
US nonfarm payrolls down 199,000 in Sept.
Gateway shares inactive ahead of regular session
Sun Microsystems warns of loss, plans layoffs
The economy has lost 488,000 jobs since March.
The September survey did not capture the effects of the terror attacks. The survey was conducted during the week of Sept. 10. "Most workers affected either directly or indirectly by the attacks registered as employed in the survey," the agency said.
The separate household survey, which the government uses to figure the unemployment rate, showed a gain of 788,000 jobs in September, nearly reversing the 986,000 jobs lost in August.
Economists were expecting 112,000 nonfarm payroll losses in September.
The bond market fell on the report. Stock futures fell, then rose. See full story.
The Federal Reserve has cut its overnight interest rate target by a full percentage point since the attacks to bolster confidence and help maintain a functioning market. The Congress is preparing a massive fiscal stimulus plan to boost demand in the economy.
The attacks did have a big impact on jobs in September. Claims for first-time unemployment benefits jumped by 71,000 in the latest week to 528,000, the highest in eight years. The Challenger survey of layoff announcements showed more than 200,000 potential job cuts following the attacks.
Those job losses won't show up until the October jobs report, at the earliest. Many economists expect the jobless rate to rise to near 6 percent in the coming year.
In September, manufacturing firms shed 93,000 jobs, bringing the year-to-date loss to 900,000. Industrial machinery lost 20,000 jobs and electrical equipment firms cut 18,000 jobs. Automakers axed 10,000 jobs.
Just one sixth of 136 manufacturing industries have added jobs in the past six months. For the economy as a whole, about 40 percent of industries have added jobs in the past six months.
Jobs in the service-producing sector fell 102,000, including 44,000 in retail trade and 21,000 in wholesale trade.
Rex Nutting is Washington bureau chief of CBS.MarketWatch.com.
|
