U.S. jobless rate climbs to 7.9 percent; 171,000 jobs added
By Frank Quaratiello and Ira Kantor | The Boston Herald | November 2, 2012
The U.S. unemployment rate rose to 7.9 percent in October as the nation added 171,000 jobs and the presidential candidates were quick to jump on the economic news.
The federal Bureau of Labor Statistics report also revised the number of jobs created in September to add another 34,000, increasing that figure to 148,000. The August jobs number was revised upward to show 192,000 jobs created.
Both President Obama and GOP nominee Mitt Romney found something to shout to the rooftops on the campaign trail today.
In Springfield, Ohio, the president touted the report: “This morning we learned that companies hired more workers in October than at any time in the last eight months. … Our businesses have created nearly five and a half million new jobs. …. The American auto industry is back on top. Home values and housing construction is on the rise. We’re less dependent on foreign oil than any time in 20 years. Because of the service and sacrifice of our brave men and women in uniform, the war in Iraq is over. The war in Afghanistan is ending; al-Qaeda’s been decimated. Osama bin Laden is dead.”
“We have made real progress,” Obama added. “But we are here today because we know we’ve got more work to do. As long as there’s a single American who wants a job and can’t find one, as long as there are families working harder but falling behind, as long as there’s a child anywhere in this country who is languishing in poverty and barred from opportunity, our fight goes on. We’ve got more work to do.”
But the Romney camp was quick to point out the slow rate of recovery.
“Today’s increase in the unemployment rate is a sad reminder that the economy is at a virtual standstill. The jobless rate is higher than it was when President Obama took office, and there are still 23 million Americans struggling for work,” said GOP presidential nominee Mitt Romney in a statement. “On Tuesday, America will make a choice between stagnation and prosperity. For four years, President Obama’s policies have crushed America’s middle class. For four years, President Obama has told us that things are getting better and that we’re making progress. For too many American families, those words ring hollow. We can do better. We can have real economic growth, create millions of good-paying jobs, and give middle-class families the security and opportunity they deserve. When I’m president, I’m going to make real changes that lead to a real recovery, so that the next four years are better than the last.”
The October employment report solidified the picture of the U.S. job market that’s emerged this year: Companies are hiring steadily, but cautiously. And unemployment remains high.
“It seems to me if the folks who are working for Gov. Romney were hoping the story this weekend would be the deteriorating U.S. economy and the declining jobs situation, then they’ve got to be disappointed this morning about that,” said Michael Goodman, public policy professor at the University of Massachusetts at Dartmouth. “I don’t think anybody looks at the employment situation in the United States and says, ‘we’re out of the woods,’ but certainly this data and the data over the last couple of years suggests we’ve been slowly and steadily moving in the right direction. … We’re adding jobs; people are returning to the work force. This is a stronger report than I expected. It’s very encouraging.”
Today’s report is the last broad snapshot of the economy before Tuesday’s presidential election. President Barack Obama still faces voters with the highest unemployment rate of any incumbent since Franklin Roosevelt.
In 1976, President Gerald Ford lost to Jimmy Carter when unemployment was 7.8 percent.
Northeastern University economist Alan Clayton-Matthews said the October jobs report, while not terrific, will allow the president to breathe a sigh of relief for now.
“I’m sure there’s that sense of relief and maybe even a bit more. Maybe they can say this shows the economy’s gaining momentum. It’s just not that much of a game-changer,” Clayton-Matthews said. “It’s good news. … It’s consistent with an economy that’s been slowly growing out of this recovery.”
Other economists weren’t so sure.
“(Obama) … has tried to spin it that things are getting better. Personally, I don’t see it at all. It’s a little better than consensus estimates, but it’s still under what we really need to the economy going again. The bottom line is job growth has not been strong. In the whole four years, we’ve had very little overall movement in the unemployment rate,” said Elliot Winer, chief economist for Northeast Economic Analysis Group.
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