New York State Unemployment

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U.S. Job losses accelerated unexpectedly last month and the unemployment rate reached the highest level since 1983, indicating a recovery in consumption and economic growth will slow.

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New York State unemployment

Oct. 3 (Bloomberg) - U.S. Job losses accelerated unexpectedly last month and the unemployment rate reached the highest level since 1983, indicating a recovery in consumption and economic growth will slow. The Labor Department figures prompted President Barack Obama to say he's working to "consider any additional measures" to boost growth, and highlighted the provisions of the Federal Reserve to keep interest rates close to zero next year . "This has the potential to put a big stop sign on the road to economic recovery," said Chris Rupkey, chief financial economist at Bank of TokyoMitsubishi UFJ Ltd. in New York. "The more jobs to get, the harder and longer than the road to recovery will be." Payrolls fell by 263,000 in September, exceeding the median forecast in the Bloomberg survey, with losses extending from cash-strapped state governments and local retailers to the manufacturers, the report showed yesterday. The unemployment rate rose to 9.8 percent from 9.7 percent in August, while working hours matched a low. 500 Standard & Poor's index closed down 0.5 percent to 1025.21 at the New York market, losing 1.8 percent for the week. Ten-year Treasury yields rose to 3.22 percent yesterday afternoon from 3.18 percent the previous day. The dollar fell 0.2 percent to 1.4576 per euro at 5:30 pm New York time. Orders Fall Obama called yesterday's report a "sobering reminder that progress comes in fits and starts" in remarks at the White House after returning from Copenhagen, where he made an unsuccessful attempt by Chicago to host the

2016 Olympics. A Commerce Department report yesterday showed factory orders fell unexpectedly in August, restrained by reduced demand for commercial aircraft and construction machinery. Reserves fell 0.8 percent after a 1.4 percent increase in July revised. Excluding transportation equipment, orders rose 0.4 percent. Fed Chairman Ben S. Bernanke said this week that economic growth may not be strong enough to "substantially" reduce unemployment, indicating that the central bank will be slow to drain billions of dollars pumped into the economy. UAL Corp. is one company job cuts in spending concerns fade as government stimulus decreases.

Fed Bank of Boston, Eric Rosengren, the president said the central bank and the government should maintain policies that support economic growth and reduce unemployment to self-sustaining recovery is assured. "The high unemployment" "I wish the policy to try to stimulate the job markets as possible," Rosengren said in response to questions after a speech in Boston yesterday. "But the reality is that even with labor markets stimulated, which is likely to see high unemployment over the next two years." September figures brought total job losses since the recession began in December 2007 to 7.2 million, the biggest drop since the Great Depression. Payrolls are expected to fall 175,000, the median of 84 estimates in a Bloomberg News survey of economists. Job losses reached a peak of 741,000 in January, the highest since 1949. The higher than expected decline in September and the jump in the unemployment rate is disappointing, "said Christina Romer, Obama's chief economist, said in a Bloomberg Television interview. Still, Romer said the

administration was focused on the general trend of slowing job losses, which showed "we are moving in the right direction." Tuesday's report showed that factory payrolls fell 51,000 after declining 66,000 the prior month. The decrease included a drop of 3,500 jobs in auto manufacturing and parts industries. GM, Saturn General Motors Corp. said this week it will close the Saturn brand after Penske Automotive Group Inc. broke off talks to buy the unit. Saturn dealers will have until October 2010 to wind up operations. The automaker based in Detroit, said in June the sale of Saturn would have saved 13,000 jobs and 350 dealers.

GM had called in some workers after government cash "-for-lemons" cutting plan in inventories already diminished during the closure of bankruptcy. Payrolls at builders fell 64,000 after decreasing 60,000. Financial firms decreased payrolls by 10,000 after declining 25,000 the prior month. Broad-based losses Service industries, including banks, insurance companies, restaurants and retailers, subtracted 147,000 workers after falling 69,000. Retail payrolls fell by 38,500. The government payrolls fell by 53,000. Economists polled by Bloomberg last month expected the unemployment rate will reach 10 percent by end 2009 and average 9.7 percent for all of next year even as the economy grows at an average rate of 2.6 per percent in the second half of this year and 2.4 percent in 2010. Yesterday's report also showed companies reduce working hours, encouraging lower weekly earnings. The average work week was reduced to 33 hours in September, matching the

record, while average weekly earnings fell to $ 616.11. The median income for hourly workers were 2.5 percent higher than September 2008, the smallest gain since 2005.Click here to see more stories and pics.

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