Oct. 5, 2012 Unemployment Report and Reactions

Statement of John M. Galvin, Acting Commissioner of the Bureau of Labor Statistics

Friday, October 5, 2012

The unemployment rate declined by 0.3 percentage point to7 .8 percent in September, and nonfarm payroll employment increased by 114,000. In 2012, job gains have averaged 146,000 per month, compared with 153,000 per month in 2011.

In September, health care employment rose by 44,000, largely in ambulatory health care services. Over the last 12 months, health care employment has risen by 295,000.

Transportation and warehousing employment increased by 17,000 in September. Employment in this industry has risen by 104,000 over the year.

Manufacturing employment edged down over the month (-16,000), with declines in computer and electronic products (-6,000) and in printing and related activities (-3,000). On net, manufacturing employment has been unchanged since April.

Employment in temporary help services was essentially unchanged in September and August. During the prior 12 months, the industry had added an average of 20,000 jobs per month. Employment in financial activities edged up in September
(+13,000), reflecting modest gains in credit intermediation (+6,000) and real estate (+7,000). Employment in other major industries changed little in September.

Average hourly earnings of all employees on private nonfarm payrolls rose by 7 cents in September to $23.58. Over the past 12 months, average hourly earnings have risen by 1.8 percent. From August 2011 to August 2012, the Consumer Price Index for All Urban Consumers (CPI-U) increased by 1.7 percent.

Turning to measures from the survey of households, the unemployment rate decreased by 0.3 percentage point to 7.8 percent in September. For the first 8 months of the year, the rate held in a narrow range of 8.1 to 8.3 percent. The number of unemployed persons declined by 456,000 to 12.1 million in September. There was a large decrease (-206,000) in unemployment among 20- to 24-year-olds. Among all unemployed persons, the proportion who had been jobless for 27 weeks or longer was 40.1 percent, essentially unchanged from the prior month but down from 44.7 percent a year earlier.

Total employment, as measured by the household survey, rose by 873,000 in September, following 3 months of little change. On a month-to-month basis, the household survey employment measure is more variable than the payroll employment measure due to the smaller household survey sample. Over longer periods, the changes in household and payroll survey employment tend to track more closely.

In September, employment of persons age 20 to 24 years rose by 368,000. The September gain for this group follows a decline in August. Over the 2-month period, employment for 20- to 24- year-olds was little changed.

The employment-population ratio rose 0.4 percentage point in September to 58.7 percent, following 2 months in which the ratio had edged down. The overall trend in the employment-population ratio for this year has been flat. The labor force participation rate was little changed in September. Like the employment- population ratio, the labor force participation rate has been essentially flat in 2012.

Among the employed, the number of involuntary part time workers increased by 582,000 to 8.6 million in September.

In summary, the unemployment rate declined from 8.1 to 7.8 percent, and nonfarm payroll employment increased by 114,000.

The White House
FOR IMMEDIATE RELEASE

October 5, 2012 

 

Statement on the Employment Situation in September

 

WASHINGTON, DC – Alan B. Krueger, Chairman of the Council of Economic Advisers, issued the following statement today on the employment situation in September. 

 

The Employment Situation in September

Posted by Alan B. Krueger on October 5, 2012 at 9:30AM

 

While there is more work that remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to heal from the wounds inflicted by the worst downturn since the Great Depression. It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007. 

 

Most pressing, Congress should pass an extension of middle class tax cuts that President Obama proposed, and the Senate passed.  This extension would prevent the typical middle class family from facing a $2,200 tax increase at the beginning of next year. In addition, the President has proposed a plan that will enable responsible homeowners to refinance their mortgage and take advantage of today’s historically low interest rates. To create more jobs in particularly hard-hit sectors, President Obama continues to urge Congress to pass elements of the American Jobs Act, including further investment in infrastructure to rebuild our Nation’s ports, roads and highways, and assistance to State and local governments to prevent layoffs and to enable them to rehire hundreds of thousands of teachers and first responders.

 

Today’s report from the Bureau of Labor Statistics (BLS) shows that private sector establishments added 104,000 jobs last month, and overall non-farm payroll employment rose by 114,000. Revisions to the previous two months added another 86,000 jobs.  The economy has now added private sector jobs for 31 straight months. Taking account of the preliminary benchmark revision (+453,000) released last week, the economy has added a total of 5.2 million private sector jobs during that period.

 

The household survey showed that the unemployment rate fell from 8.1 percent in August to 7.8 percent in September, the lowest rate since January 2009.  Labor force participation rose by 418,000 people in September, and the labor force participation rate rose by 0.1 percentage point. Over the last 12 months, the unemployment rate has decreased by 1.2 percentage points, the largest drop since February 1995.

 

Employment rose notably in health care and social assistance (+44,500), transportation and warehousing (+17,100), restaurants and bars (+15,700) financial activities (+13,000), and professional and business services (+13,000). Manufacturing lost 16,000 jobs, primarily in durable goods (-13,000).

 

As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report and it is informative to consider each report in the context of other data that are becoming available.


Alan B. Krueger is Chairman of the Council of Economic Advisers.

Romney for President
9:21 a.m.
MITT ROMNEY: THIS IS NOT WHAT A REAL RECOVERY LOOKS LIKE

Boston, MA – Mitt Romney today released the following statement on the September unemployment report:  
 
“This is not what a real recovery looks like. We created fewer jobs in September than in August, and fewer jobs in August than in July, and we’ve lost over 600,000 manufacturing jobs since President Obama took office. If not for all the people who have simply dropped out of the labor force, the real unemployment rate would be closer to 11%. The results of President Obama's failed policies are staggering – 23 million Americans struggling for work, nearly one in six living in poverty and 47 million people dependent on food stamps to feed themselves and their families. The choice in this election is clear. Under President Obama, we’ll get another four years like the last four years. If I’m elected, we will have a real recovery with pro-growth policies that will create 12 million new jobs and rising incomes for everyone.”

12:10 p.m.
PAUL RYAN: WE SHOULD NOT HAVE TO SETTLE FOR THIS NEW NORMAL

Boston, MA – Paul Ryan today released the following statement on the September unemployment report:  
 
“Today is a sad indictment of the diminished expectations under President Obama. Far too many Americans are still waiting for their chance in the Obama economy. For those able to find work this month, any job growth is welcome, but this number is once again well below what is needed for America to meet its economic potential. Two-thirds of those who found work took part-time jobs when they are actually seeking full-time ones.  We should not have to settle for this new normal. This is not what a real recovery looks like. We need a real recovery, and Mitt Romney has the detailed plan and leadership to provide it.”
Republican National Committee

RNC Chairman Reince Priebus Statement on the September Jobs Report

WASHINGTON - Republican National Committee (RNC) Chairman Reince Priebus released the following statement on the September jobs report:

"Too many Americans are still struggling for work in today's economy, and for too many families, the last four years has seen declining wages and increasing costs," said RNC Chairman Reince Priebus. "High unemployment remains a chronic condition in America, the seriousness of which is measured not simply by one number but by the millions of families trying to make ends meet in an impossible economy."

"Americans cannot afford four more years like the last four years. And as Wednesday night's debate made clear, only one candidate has a plan to take us toward a better future. While Governor Romney has a plan that will create 12 million new jobs, President Obama only has a plan for higher taxes, which will destroy 710,000 jobs. The middle class is crying out for relief, and the president proposes to keep burying them.

"Four years ago, Barack Obama vowed he understood our problems and possessed the solutions. With a massive stimulus, he promised unemployment below 5.5 percent by today. If the number of people in the workforce were the same as when he took office the unemployment rate would be nearly 11 percent.

"After four long years in office, unemployment is still much higher than the standard he set for himself."

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American Federation of Teachers

AFT Statement on New Jobs Report


WASHINGTON, D.C.— Statement of AFT President Randi Weingarten following news that the unemployment rate dropped to 7.8 percent.

“Today’s jobs report makes clear that President Obama’s actions are strengthening our economy and putting Americans back to work. President Obama inherited an economic train wreck and took bold steps through the American Recovery and Reinvestment Act; the auto rescue; investments to keep teachers, cops and firefighters on the job; and incentives to get businesses hiring again—and the result has been 31 months of sustained job growth. The president would have put another 2 million Americans back to work if Republicans had supported, instead of blocked, his jobs bill. Today’s report also shows that since July we have put tens of thousands of Americans back to work in our public schools—that means more teachers in the classroom, more nurses in our schools, and more guidance counselors and other professionals helping our children learn and grow.

“While we still have a long way to go, we simply can’t afford to change course. We cannot afford to go back to the same failed policies that drove our economy off a cliff, put millions of Americans out of work, wiped out our savings, and increased the gap between the rich and the rest of us. Mitt Romney’s plan for more tax cuts for the rich and more cuts to education, healthcare and Medicare will cost us jobs and tank our economy. President Obama is the right leader to strengthen our economy, restore the middle class, and ensure everybody has a fair shot at success.”

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Follow AFT President Randi Weingarten: http://twitter.com/rweingarten

  The AFT represents 1.5 million pre-K through 12th-grade teachers; paraprofessionals and other school-related personnel; higher education faculty and professional staff; federal, state and local government employees; nurses and healthcare workers; and early childhood educators.


Campaign for America's Future

Jobs Numbers Show Now is Not the Time for Austerity

October 5, 2012              Contact: Liz Rose 

Washington, DC -- Robert Borosage, of the Campaign for America’s Future warns lawmakers that any premature turn to austerity could slow the economy. He said, “This is not a time for inflicting austerity on a weak economy.”

Statement from Robert L. Borosage, co-director of the Campaign for America’s Future:

“The September jobs report is more of the same.  We witness slow growth, with job creation barely at levels needed to keep up with workforce growth.   And the economy is headed into ever more severe headwinds – Europe’s recession is already reflected in manufacturing job stagnation; the congressionally invented `fiscal cliff’ at end of year will soon slow hiring by government contractors. 

“Federal Reserve Chairman Ben Bernanke is right:  the time for action is now.  But with congress adjourned for elections, any action will wait until the lame duck Congress convenes.  Its focus will be on avoiding the crippling hit the economy would take with the deep cuts required by the sequester and the expiration of a range of tax cuts.  What is needed is a plan to get the economy moving and put people to work, one that provides for growth, redresses extreme inequality and protects basic security for Americans.  This is not a time for inflicting austerity on a weak economy.  Putting people to work is the first and necessary step to any sensible effort to get our economy in order.” 

The Campaign for America's Future (CAF) is a center for ideas and action that works to build an enduring majority for progressive change. The Campaign advances a progressive economic agenda and a vision of the future that works for the many, not simply the few. The Campaign is leading the fight for America's priorities – for good jobs and a sustainable economy, and for strengthening the safety net.

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Concerned Women for America
Concerned Women for America Comments on September Unemployment Rate of 7.8%

Nance:  "We have a moral responsibility to provide for today and not pass on our financial burden to future generations."


Washington, DC - Concerned Women for America CEO and President Penny Nance issued the following statement in response to the September jobs report from the Bureau of Labor Statistics showing the unemployment rate at 7.8%:

 

"Families of this country are struggling and with an unemployment rate of 7.8%, we need to make job creation a priority.  People are rightly concerned about the lack of jobs and low take home pay.  With just more than 30 days until the most important election in our lifetime, we need leadership in Washington that will focus on creating jobs for Americans, not just renewing their current job contract.

  

"We talk to mothers across the country and they say the high unemployment rate, along with the growing debt, is a moral issue.  As a nation, we have a moral responsibility to provide for today and not pass on our financial burden to future generations."

 

If you would like to schedule an interview with CWA CEO and President Penny Nance, please contact Alice Stewart at alicestewart1@msn.com or 202-365-5654.

 

CWA is the nation's largest public policy women's organization and is uniquely positioned to connect with and advocate for women and families.  Over the past three decades, CWA has built an effective grassroots network of conservative activists, which includes 500,000 constituents and 600 chapters reaching women, families, and cultural leaders.

 

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Generation Opportunity via PRNewswire

September Unemployment at 11.8 Percent for Young Americans

Statement by Generation Opportunity President and former US Department of Labor Chief of Staff Paul T. Conway on youth unemployment

New polling shows 76% of young Americans plan to vote and only 29% say current economic policies coming out of Washington are helping them

WASHINGTON, Oct. 5, 2012 /PRNewswire-USNewswire/ -- Generation Opportunity, the largest non-profit, non-partisan organization in the United States engaging and mobilizing young Americans on the important economic issues facing the nation, announced non-seasonally adjusted (NSA) 18-29 unemployment rate data for September 2012:

  • The youth unemployment rate for 18-29 year olds specifically for September 2012 is 11.8 percent (NSA).
  • The youth unemployment rate for 18-29 year old African-Americans for September 2012 is 21.0 percent (NSA); the youth unemployment rate for 18-29 year old Hispanics for September 2012 is 12.1 percent (NSA); and the youth unemployment rate for 18–29 year old women for September 2012 is 11.6 percent (NSA).
  • The declining labor force participation rate has created an additional 1.7 million young adults that are not counted as "unemployed" by the U.S. Department of Labor because they are not in the labor force, meaning that those young people have given up looking for work due to the lack of jobs.
  • If the labor force participation rate were factored into the 18-29 youth unemployment calculation, the actual 18-29-unemployment rate would rise to 16.6 percent (NSA).

Generation Opportunity President Paul T. Conway, former Chief of Staff of the United States Department of Labor and former Chief of Staff of the United States Office of Personnel Management, issued the following statement in response to the September 2012 jobs numbers:

"11.8 percent of young Americans are now unemployed through no fault of their own and more still are falling out of the workforce due to an historic lack of opportunity. These numbers tell a devastating story – a story we cannot afford to ignore or hope away. The risk is far too high, as the promise of America is slipping past an entire generation. As fellow citizens, we have an obligation to act, to create opportunity, and to offer real hope and independence to young Americans.

"What adds to the gravity of today's report is the current administration's casual dismissal of the facts and their stubborn insistence on moving forward with the same policies of the last three-and-a-half years regardless of the consequences.

"Young Americans know this is not fair, and they are asking why the White House continues to push policies that are moving them backward. They want solutions, not slogans, not excuses, not empty promises. As young Americans watch the candidates lay out their plans and prepare to vote this November, they are making up their minds based on issues and who lays out the best plan for the economy, to create jobs, and allow the growth of opportunity so they can fulfill their hopes and dreams for the future. As the election nears, we continue to encourage all young Americans not yet registered to vote, to register now, while they still have time."

Generation Opportunity is encouraging its four million Facebook fans, as well as its thousands of grassroots supporters across the nation, to register to vote and to register friends and family to vote. Using the tag line – "We Can Do Better, the Future Depends on You, GO Register to Vote" – the group is urging its supporters to demand that the policies of the last three and a half years, which have stifled job creation, be reversed in favor of policies that free up Americans to create jobs, to hire, and to restore the American tradition of access to opportunity for all.

For Generation Opportunity, the polling company, inc./WomanTrend conducted a nationwide online survey of 1,003 adults ages 18-29 between July 27 and July 31, 2012. Randomly selected online opt-in panel participants were sent an invitation to the survey via email which included a secure link to the online questionnaire. Quotas were used to ensure the survey was representative of the larger 18-29 year old nationwide population with regard to race, region, and gender. The data were NOT weighted. The overall sampling margin of error for the survey is +/- 3.1% at a 95% confidence interval, meaning that the data obtained would not differ more than 3.1 percentage points in 95 out of 100 similar samples obtained.

  • 76% of Millennials plan to vote in the election for President this year.
  • 29% of Millennials believe that the economic policies coming out of Washington are helping them, while 47% of Millennials say that the economic policies coming out of Washington are hurting them.
  • Only 38% believe that today's political leaders reflect the interests of young Americans.
  • 89% of young people ages 18-29 say the current state of the economy is impacting their day-to-day lives (Accepted multiple responses) (Randomized):
    • 51% reduced their entertainment budget;
    • 43% reduced their grocery/food budget;
    • 43% cut back on gifts for friends and family;
    • 40% skipped a vacation;
    • 38% driven less;
    • 36% taken active steps to reduce home energy costs;
    • 32% tried to find an additional job;
    • 27% sold personal items or property (cars, electronic appliances, or other possessions);
    • 26% changed their living situation (moved in with family, taken extra roommates, downgraded apartment or home);
    • 17% skipped a wedding, family reunion, or other significant social event;
    • 1% other;
    • 8% none of the above (accepted only this response);
    • 3% do not know/cannot judge (accepted only this response).
  • 84% of young people ages 18-29 had planned to but now might delay or not make at all a major life change or move forward on a major purchase due to the current state of the economy (Accepted multiple responses) (Randomized):
    • 38% buy their own place;
    • 32% go back to school/getting more education or training;
    • 31% start a family;
    • 27% change jobs/cities;
    • 26% pay off student loans or other debt;
    • 25% save for retirement;
    • 23% get married;
    • 12% none of the above (accepted only this response);
    • 4% do not know/cannot judge (accepted only this response).
  • 76% believe that the lack of job opportunities is shrinking the American middle class.
  • 64% of young people ages 18-29 believe the availability of more quality, full-time jobs upon graduation is more important than lower student loan interest rates.
  • 61% of Millennials say the availability of more quality, full-time jobs with health insurance plans is more important than the ability to stay on their parents' health insurance plans until they are 26.

ABOUT GENERATION OPPORTUNITY

Generation Opportunity is a non-profit, non-partisan 501 (c)(4) organization that seeks to engage everyone from young adults, to early career professionals, college students, young mothers and fathers, construction workers, current service men and women, veterans, entrepreneurs, and all Americans who find themselves dissatisfied with the status quo and willing to create a better tomorrow.

Generation Opportunity operates on a strategy that combines advanced social media tactics with proven field tactics to reach Americans 18-29. The organization's social media platforms – "Being American by GO," "The Constitution by GO," "Gas Prices Are Too Damn High," "Lower Taxes by GO," "Keep Texas Awesome," "Jersey Proud," and "We Like Small Government" on Facebook – have amassed a total fan base of more than 4 million. The pages post links to relevant articles and reports from sources ranging from the federal Government Accountability Office (GAO), to The New York Times, The Washington Post, The Brookings Institution, The Wall Street Journal, The Huffington Post, and The Heritage Foundation.

Read about Generation Opportunity here; visit "Being American by GO" on Facebook here, "The Constitution by GO" on Facebook here,  "Gas Prices Are Too Damn High" on Facebook here, "Lower Taxes by GO" on Facebook here, "Keep Texas Awesome" on Facebook here, "Jersey Proud" on Facebook here, and "We Like Small Government" on Facebook here.

For our Spanish-language page – Generacion Oportunidad – click here.

Matthew Faraci 
David Pasch

RATE Coalition

Mediocre September Jobs Report is Another Sign that the U.S. needs Corporate Tax Reform

WASHINGTON, D.C. – The U.S. Department of Labor this morning announced unemployment fell to 7.8 in September and the U.S. economy added only 114,000 jobs. RATE Co-chairs Elaine Kamarck and James P. Pinkerton released the following statements regarding the report:

“On Wednesday evening tens of millions of Americans observed President Obama and Governor Romney describing how they would fix the economy and create jobs,” said Elaine Kamarck, Co-Chair of the RATE Coalition and former White House adviser to President Bill Clinton and Vice President Al Gore. “It’s notable that both of their plans for economic growth include reforming the corporate tax code by lowering the tax rate and broadening the base. Just as bipartisan agreement cleared the way for tax reform in 1986, agreement between Democrats and Republicans today is key to tax reform now.”

“This morning’s mediocre jobs figures continue a trend of lackluster economic growth while unemployment remains high,” said James P. Pinkerton, Co-Chair of the RATE Coalition and former White House domestic policy adviser to Presidents Ronald Reagan and George H.W. Bush. “Both candidates called for economic growth during Wednesday’s debate and they understand corporate tax reform leads to job creation. Democrats and Republicans agree the United States needs to lower its corporate tax rate. Today’s report means lawmakers need to act now.”

 

About RATE Coalition:

RATE is a coalition of 28 companies and organizations advocating for sensible corporate tax reform. Making the tax code fairer and simpler will help spur job growth and stimulate the U.S. economy, and make us more competitive globally. RATE members currently include: AT&T, Altria Client Services Inc., Association of American Railroads, Boeing, Brown Forman, Capital One, Cox Enterprises, CVS Caremark, FedEx, Ford, General Dynamics, Home Depot, Intel, Kimberly-Clark, Liberty Media, Lockheed Martin, Macy's, National Retail Federation, Nike, Northrup Grumman, Raytheon, Southern Company Time Warner Cable, T-Mobile, UPS, Verizon, Viacom and Walt Disney. RATE members and affiliated companies represent over 30 million employees in all 50 states and support innumerable numbers of suppliers and small businesses.  More information about the coalition is available at www.RATEcoalition.com.

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Stop The HIT Coalition

FOR IMMEDIATE RELEASE
Contact: Molly Cullen

Flat National Jobs Report Underscores Need to Repeal HIT on Small Business

WASHINGTON, D.C. (October 5, 2012) – Today, the U.S. Bureau of Labor Statistics announced the national unemployment rate fell to 7.8  percent in September and the U.S. economy added only 114,000 jobs.

The Stop The HIT Coalition issued the following statement:

“This week during the presidential debate, both candidates openly acknowledged the crucial role small businesses play in our national economy and their importance in the creation of new jobs. Today’s flat jobs numbers indicate that meaningful and sustainable job creation cannot occur at the national level until our job creators are allowed the bandwidth to innovate, create new businesses and afford to hire more employees. We must remove the Health Insurance Tax and the crippling fees it imposes on our innovative and job creating small businesses who are already under enough stress during these uncertain economic times.”

According to a quarterly survey released by the U.S. Chamber of Commerce this week, 60 percent of small business owners and executives say the climate for their companies has gotten worse over the past two years, with only 17 percent expecting to hire more workers next year.

Taxes such as the HIT only add to this pessimism, with one small business owner, David McArthur, telling a national TV audience that the HIT is a “nail in the coffin” for businesses like his.
 
The HIT is one of the largest tax increases included in the healthcare reform law and its fees will fall largely on the small business community:


Legislation aimed at repealing the HIT has gained bipartisan support in Congress. Representatives Charles Boustany (R-LA) and Dan Boren (D-OK) have introduced House legislation that has 224 bipartisan cosponsors. Senators John Barrasso (R-WY), Orrin Hatch (R-UT) and Olympia Snowe (R-ME) have introduced companion legislation in the Senate, “The Jobs and Premium Protection Act.”

The Stop The HIT Coalition represents the nation’s small business owners, their employees and the self-employed who are actively working to repeal the Health Insurance Tax. Since the Coalition’s formation last May, it has grown to include more than 35 national organizations, representing millions of small business owners across the country.  The Coalition’s website enables small business owners and employees to sign a petition and write a letter to their Representatives in Washington urging them to repeal this tax.  
 
Learn more at http://www.stopthehit.com/.
 

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