The BLS unemployment report shows total nonfarm payroll jobs gained were 114,000 for September 2012 and the unemployment rate dropped to an artificial 7.8%. Some better news was August's payrolls were revised up by 40,000 jobs to 181,000 and July was also revised up by 46,000 jobs to show a gain of 142,000 in nonfarm payrolls. The below graph shows the monthly change in nonfarm payrolls employment.
The BLS actually is two separate surveys and this month the two really diverged. CES or payrolls shows little job growth while the Household survey, or CPS shows an impossible gain of 873,000 employed people and a monthly drop of -456,000 in those officially unemployed. We've already covered these discrepancies in this article directly comparing the household to payrolls survey and another, showing labor force movements as well as part-time workers. Now let's take a look at the jobs reported by businesses, the other survey from the employment report.
There were 104,000 private sector jobs gained while government payrolls added 10,000 jobs. Manufacturing lost 16,000 jobs.
The start of the great recession was declared by the NBER to be December 2007. The United States is now down -4.482 million jobs from December 2007, 4 years and 9 months ago.
The below graph is a running tally of how many official jobs are permanently lost, from the establishment survey since January 2008. Amazing isn't it considering the time period of the below graph.
Manufacturing alone has lost 1.781 million jobs since January 2008. This month's loss of 16,000 is not good news.
Government gained 10,000 jobs for September and most of July's revisions were government jobs. That said, government, especially at the state and local level has been hemorrhaging jobs. Since January 2008, all government payrolls are down 375,000 jobs.
Construction has just been hammered due to the housing bubble collapse as well as the recession. This month construction gained 5,000 jobs yet from the beginning of the recession jobs in the construction field are down 1,958 million jobs.
Financial activities payrolls are now down -461,000 jobs since the start of the recession. This month the financial sector gained 13,000 jobs.
Retail trade, which are your retail sales outlets like big box marts, direct mailing and anything retailing merchandise, is down -804,000 jobs since the start of 2008.
Education and health services has consistently been increasing and this month was no exception 49,000 additional jobs and of those jobs 44.5 thousand were in health care and social assistance. A total of 1.805 million jobs have been gained in education & health services since the start of 2008.
Professional & Business services contains management, career professionals, science & technical, administrative and support and finally waste services. This industry sector is only down 95 thousand jobs since the start of the great recession and this month added 13,000 jobs.
Transportation and warehousing also has still not recovered their jobs and are down -142,500 since January 2008. This is in spite of this month's good showing of 17,000. These are services for moving of people as well as cargo and also storage.
As we can see 114,000 in payrolls growth is actually terrible and depending on which labor participation rate one uses, really not enough to keep up with employing the growing U.S. work force.
We also want to go back to 2008 for it seems the press and others forget, we simply have not recovered from the Great recession at all. There is a massive jobs deficit, no matter what the official unemployment rate does.
The BLS gives industry payroll breakdowns for more detail on payrolls and job growth per NAICS classified industries. From the employment report we can see while we have on average job growth, payrolls are not growing as fast as they were in 2011.
Total nonfarm payroll employment increased by 114,000 in September. In 2012, employment growth has averaged 146,000 per month, compared with an average monthly gain of 153,000 in 2011.
In September, employment rose in health care and in transportation and warehousing. Health care added 44,000 jobs in September. Job gains continued in ambulatory health care services (+30,000) and hospitals (+8,000). Over the past year, employment in health care has risen by 295,000.
In September, employment increased by 17,000 in transportation and warehousing. Within the industry, there were job gains in transit and ground passenger transportation (+9,000) and in warehousing and storage (+4,000).
Employment in financial activities edged up in September (+13,000), reflecting modest job growth in credit intermediation (+6,000) and real estate (+7,000).
Manufacturing employment edged down in September (-16,000). On net, manufacturing employment has been unchanged since April. In September, job losses occurred in computer and electronic products (-6,000) and in printing and related activities (-3,000).
Employment in other major industries, including mining and logging, construction, wholesale trade, retail trade, information, professional and business services, leisure and hospitality, and government, showed little change over the month.
There were also primarily benchmark adjustments released, outlined here. The primarily benchmark will increase March 2012 nonfarm payrolls by 386,000 and the private sector by 453,000 jobs. These figures will be incorporated into the data in February 2013, using a one year backwards linear distribution adjustment.
Payrolls are much more accurate than the household survey and by looking back to 2008, we see most industries have not recovered even the jobs lost. Various fractions try to spin the unemployment rate yet payrolls tell no lie, labor has not recovered from the recession.