Published: November 06, 2009 06:05 pm      

Jobless rate highest since 1983

Average hours worked down to 33 a week

Despite encouraging signs locally, the national unemployment rate hit its highest total in 26 years last month.

The U.S. jobless rate for October was 10.2 percent — the highest mark since April 1983 and up from 9.8 percent in September.

According to the U.S. Labor Department, 15.7 million Americans are unemployed. The average duration of unemployment is up to just under 27 weeks.

Uric Dufrene, Sanders chair of the Indiana University Southeast business school, has stated for several months economic recovery would be U-shaped on a graph, not a quick fix.

“We are going to see slow growth due to the restructuring of consumer balance sheets, and the overall less tolerance for debt,” Dufrene said Friday.

Less spending will continue to impact the construction, manufacturing and retail sectors the most, Dufrene said.

In October, construction had an unemployment rate of 19.1 percent. Manufacturing and retail combined to shed 101,000 jobs.

But those in secure employment positions are also cutting back on spending which continues to hurt the economy, Dufrene said.

“As long as unemployment rates remain elevated, even those in secure employment positions will also cut back and restrain spending,” Dufrene said.

The jobless rate for workers with some college or an associate degree increased from 8.5 percent to 9 percent. There was a slight decline in the unemployment rate for workers with a bachelors degree, down to 4.7 percent.

High school graduates only had an unemployment mark of 11.2 percent, and less than high school was 15.5 percent.

Dufrene points to the average weekly hours summary from the report as another indication the economy remains weak. Employees only worked an average of 33 hours in October.

“So even though one may be employed, the lack of overtime or the opportunity to work a full 40 hour week is causing additional pain on family finances,” Dufrene said.

But there was good news in the Labor Department study.

The temporary labor services sector added 34,000 positions in October.

“One of the first signs of a recovery is temporary labor services,” Dufrene said. “Employers will hire temporary labor before making a commitment to permanent workers.”

But with predictions the national unemployment rate could continue to grow, top U.S. officials remain wary after the October increase.

“It’s a stark reminder of how much work remains to be done to get people back to work, Christina Romer, head of President Barack Obama’s Council of Economic Advisers, told The Associated Press.

Indiana’s unemployment rate was 9.6 percent in September. Locally, Floyd and Clark counties recorded jobless marks of 7.4 percent and 8.2 percent in September respectively.



BY THE NUMBERS

• Unemployment Rate April 1983 — 9.8 percent

• Unemployment Rate October 2009 — 10.2 percent

• Average time unemployed — About 27 weeks



THE JOBLESS RATE

• For workers with some college or an associate degree — 9 percent

• For workers with a bachelors degree — 4.7 percent.

• For workers with high school graduates — 11.2 percent

• For workers with less than high school — 15.5 percent.