The Bureau of Labor Statistics September Outlook Explained

In a study released yesterday, the  Bureau of Labor Statistics reports that the September unemployment rate remains unchanged at 9.6 percent with 14.8 unemployed individuals within the United States.

The Big-Picture Statistics

Overall, there was a decrease in nonfarm payroll jobs-- 95,000 positions were cut. Government jobs also decreased by 159,000, reflecting the cutback of temporary Census 2010 workers and   local government positions. Private-sector growth trended upwards with an addition of 64,000 new positions. Even though the private sector is creating new positions month-over-month, the BLS describes this growth as modest, which means that it is not enough for quick recovery.

Who Is Hit Hardest?

In yesterday's report, the BLS includes an analysis of unemployment by race and gender:

• adult men: 9.8 percent


• adult women: 8.0 percent


• teens: 26 percent


• whites: 8.7 percent


• blacks: 16.1 percent


• Hispanics: 12.4 percent


• Asians (not seasonally adjusted): 6.4 percent

For long-term unemployed persons (people who have been unemployed for 27 weeks), the number is slightly down by 640,000 people, leaving the current total at 6.1 million. The number was at its recent highest in May at 6.8 million, so the change is minimal. The number of unemployed individuals who have been jobless for more than 27 weeks is 41.7 percent.

Discussion

Since current United States population projections are above 300 million, it may seem as though the economy is slightly improving and that only a small percentage of individuals are unemployed.

In actuality, these small numbers are misleading, and the economic disaster reaches far beyond what the basic unemployment numbers show.

According to the BLS, 9.5 million people are employed part-time for "economic reasons." This category of people includes people who were forced to take part time work instead of full time work because of a decrease in hours or an inability to find full-time work. This group of people falls into the classification of people who are "underemployed," which means that they are unable to find the type of position that pays as much as they would like. Sure, something is probably better than nothing-- but it doesn't mean that something is enough, especially since many part-time positions are unbenefitted. On top of a pay cut, people have to pay high health insurance premiums or forego health insurance altogether.

Furthermore, the number of discouraged workers was 1.2 million in September. This number represents people who have left the workforce altogether because they believe that no jobs are available. There was an increase of 503,000 discouraged workers from last year.

The Bottom Line

Look beyond the basic unemployment rate when career planning. Don't let statistics or small numbers deceive you into thinking that the economic climate is improving or that it will improve.

Find creative ways to work within this economic context to find a way to make ends meet. Be realistic about your career and salary objectives, no matter who you are-- whether you are experienced, entry-level, or still in school.

Rely on practicality-- not hope-- to help you weather this economic storm.

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