This morning the Bureau of Labor Statistics reported a deeper than expected disappearance of jobs (-190,000 vs. -150,000 expected) in October, bringing the total number of statistically unemployed people to 15.7 million. Moreover, the total number of underemployed people reached the highest level since 1995 at 17.5%.
The new data reveals 5.6 million Americans have been without work for over 6 months. This is a record breaking 36.5% of the total unemployed pool.
The only bright spots in the report were jobs added to health care and education (+45,000) and professional and business services (+18,000).
Although the economy and markets will improve before businesses start employing more people, the incredibly large number of underemployed will tamper any recovery as new job openings are not likely to increase fast enough to mop up those without an income. Further, the holiday shopping season is destined to disappoint investors and children alike as personal disposable income promises to be much lower than last year.
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