U.S. unemployment rate trimmed to 7.9 percent
But that’s still highest jobless mark before an election since formal records began in 1948
Economic activity has improved since this photo was taken in Havana at the end of April, but not as much as was hoped. (Flickr/Randy von Liski)
By Ted Cox
The national unemployment rate dropped below 8 percent in figures released Friday, but that’s still the highest jobless mark immediately ahead of an election since formal record keeping began in 1948.
The U.S. Bureau of Labor Statistics released its monthly report setting the unemployment rate at 7.9 percent, down from 8.4 percent in August, which was the first month below 10 percent since the coronavirus pandemic gripped the economy in March and April.
But the bureau specified that the economy added just 661,000 nonfarm jobs for the month, fewer than analysts had expected and well down from the 1.4 million jobs added in August — indications that the recovery was slowing as the economy attempts to rebound from the worst of the pandemic and the economic slowdown it caused.
Labor Secretary Eugene Scalia tried to put a good face on it, issuing a statement saying: “Today’s report shows 877,000 private-sector jobs added back in September, and an additional 145,000 jobs from July and August.” He added, however, that “the report reflects a seasonally adjusted loss of 350,000 jobs in public and private education. Large gains were made in lower-wage jobs in retail and leisure and hospitality, and manufacturing added 66,000 jobs, its largest increase since June.
“More than half the jobs lost from the pandemic have now been restored, and the third quarter ended with a 7.9 percent unemployment rate, half the15.8 percent third-quarter unemployment rate projected by the Congressional Budget Office in May.”
Former Labor Secretary Robert Reich was less cheery. “The September jobs report shows permanent job losses increased, with 36 percent of unemployed workers now classified as permanently unemployed,” he tweeted. “Meanwhile, a (new coronavirus) relief bill is nowhere in sight. The GOP is too focused on ramming through a Supreme Court nominee a month before the election.”
It’s the last U.S. jobs report to be released before voting in the general election concludes Nov. 3, and Reich pointedly added, “This is the highest the unemployment rate has been ahead of a presidential election since the government started tracking the monthly rate in 1948.”
On Thursday, the U.S. Department of Labor reported that new weekly claims for unemployment benefits remained stubbornly above the previous record of 695,000 set during the 1982 recession. The department reported 837,000 newly idled workers filing for benefits last week, down just 37,000 from 870,000 the week before, consistent with the four-week average of 867,000.
New weekly claims have not been below the old record since 3.3 million filed in mid-March, with the new record of 6.9 million claims in a week set the last full week of March.
New claims filed in Illinois rose slightly last week to 28,000, up from 26,000 the week before, and claims for expanded federal benefits for independent contractors, freelancers, and so-called gig workers also rose slightly to 5,400, from 4,200 the week before.
The department reported that, on a national level, “the total number of people claiming benefits in all programs for the week ending September 12 was 26,529,810, an increase of 484,856 from the previous week. There were 1,423,884 persons claiming benefits in all programs in the comparable week in 2019.”