Unemployment rate climbs to 10.2%

The US economy lost a net total of 190,000 jobs in October, causing the national unemployment rate to jump to 10.2%, the highest in 26 years.

Even after positive GDP growth, the new job numbers reveal the fragile state of the American economy. The 190,000 jobs lost were more than economists expected signaling indicators such as consumer confidence and spending do not reveal the whole economic picture. The total number of unemployed topped 15.7 million citizens an increase from 15.1 million in September. The manufacturing and construction industries hardest hit by the recession continued to shed jobs at a rate much higher than other sectors of the economy. The average time workers have been unemployed increased to 6 or more months a sign that businesses are cutting jobs, but remain cautious about hiring new employees. Economics remain optimistic however that a jobless recovery is still possible, "It's not a good report," said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co. "What we're seeing is a validation of the idea that a jobless recovery is perfectly on track." Their was one positive sign in the released numbers, productivity jumped 9.5 percent in the third quarter signaling businesses are becoming more production despite smaller work forces. Although the unemployment rate has not reached the 10.8% of 1982, many economists say job losses will continue throughout 2010 and the unemployment rate may reach the same level as 1982.