While they say things get better with time, the jobs picture is at least one exception. Today's release of monthly non-farm payrolls showed that employers cut 598K jobs during the month of January. As shown, the US economy has lost a total of 3.6 million jobs since the start of 2008 with the bulk of those declines (80%) coming during the last five months. While the magnitude of the decline in jobs has been large, the pace of downward revisions is making things even worse.
In the chart below, we show the cumulative decline in monthly jobs using the reported figures on the day of the initial release as well as the most recently revised numbers. As shown, based on reported numbers, the US economy would have lost 2.48 million jobs since the start of 2008. However, once we take into account the negative revisions, the US economy has lost another 1.1 million jobs, representing a 44% increase in jobs lost.
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Posted by: Chances | February 06, 2009 at 09:32 AM
wasn't the BAC CEO on 60 minutes a month ago or basically telling us how they took over Wall Street? Crazy!
Posted by: Tim | February 06, 2009 at 09:49 AM