U.S. Probably Lost Jobs Again in October, Manufacturing Slump Intensified

[marmar]

Payrolls Probably Fell, Factories Shrank: U.S. Economy Preview

By Bob Willis

Nov. 2 (Bloomberg) -- U.S. employers probably eliminated jobs in October for a 10th consecutive month, while manufacturing contracted at the fastest pace since the 2001 recession, economists said before reports this week.

Payrolls shrank by 200,000 workers, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's report on Nov. 7. The unemployment rate may jump to its highest level in more than five years.

``It should be another lousy report,'' said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. ``This'll be another nail in the consumer's coffin.''

The loss of almost one million jobs, falling property values, slumping stocks and frozen credit may cause consumers and businesses to keep retrenching. The state of the economy gave Democrat Barack Obama a lift over Republican rival John McCain as Americans, who will elect a new president in two days, perceived the Democrat from Illinois had a better grasp of the issue.

The projected drop in payrolls would be the biggest in five years and follow a decline of 159,000 in September. Factories probably cut 62,000 workers from payrolls, according to the survey median.

The jobless rate last month probably rose to 6.3 percent from 6.1 percent in September, the survey also showed.

``Unemployment is likely to rise sharply over the next several months as repercussions from the credit crisis ripple through the economy,'' said Russell Price, senior economist at H&R Block Financial Advisors in Detroit. ``The economy is the most important issue on the minds of voters.'' .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=afp4SsevjbnQ&refer=home

[geckosfeet]

1. Maybe if we give away more tax money to the financial industry it will all go away.

[gizmo1979]

2. I know of at least 90 less

That's how many we lost where I work.more to come.