7000 Government Jobs Gained – All Other Sectors Lost

By Donald Griffith on March 8, 2010, 6:50 am

The Bureau of Labor Statistics released new jobless numbers on 5 March, showing a loss of 36,000 jobs in the month of February with an unemployment rate of 9.7%. President Obama and other officials expressed optimism; many had expected the numbers to be worse, especially given the toll of severe winter storms. Most sectors of the economy were down, with increases primarily from federal and temporary hiring.

Jobs Lost And Gained

Job losses came primarily from sectors such as education, transportation, construction, publishing, and insurance. Temporary workers increased by 48,000 in February, usually a leading indicator of job growth and the fifth monthly gain in a row. Healthcare workers increased by 20,000. Factory workers increased by 1,000.

Overall, government workers declined by 18,000, but that doesn’t tell the whole story. Local governments cut 31,000 jobs while state governments added 6,000 and the federal government added 7,000. Federal hiring reflected 15,000 additional temporary workers who will help with the 2010 Census. The Census Bureau said it plans to hire 1.15 million temporary workers in the first half of 2010. Most of that hiring will take place from April to June, but it does muddy the overall jobs picture, especially if looking for real jobs growth.

Underemployment

The headline jobs data often doesn’t give the real picture, however. Unemployment numbers don’t account for discouraged workers who have given up looking for work or part-time workers who want to work full-time but can’t. Including these groups, the so-called underemployment rate rose in February to 16.8%. A Gallup poll recently found that number to be closer to 20%. The Bureau of Labor Statistics, which released the information on Friday, said that the underemployment rate of 16.8% is among the highest since they started keeping track in 1994. Underemployment has significant effects on the economy – they spend 35% less than fully-employed workers. If 1 out of every 5 workers is underemployed, that’s problematic for hopes of a recovery.

Significantly, the 2009 benchmark revision indicates job losses last year were steeper than previously reported. The revised data shows that 600,000 more jobs were lost in 2009 than generally thought. Uncertainties remain about the early months of 2010, as well. Due to heavy winter storms, there will likely be significant adjustments to these reported figures. Even so, it’s cause for concern if the only source of optimism is an increasing temporary work pool – with companies loathe to commit to hiring full-time – and a growing federal government.

Related posts:

1. Employment/Jobs: 37% Of Unions Are Now Government Workers
2. Unemployment Extension: 100K Drop In Job Openings Says Labor Dept
3. Are Jobs Really Starting To Go In The Right Unemployment Direction?
4. Jobs: African-American Unemployment Rate Drops
5. Unemployment: Nearly One-Third Of March Jobs From Temp Census Workers