For the first time in four years, U.S. employment contracted as a result of huge drops in construction and manufacturing payrolls, reports Jeff Testerman of BrokerHunter.com. Fears that the slowdown in housing has affected the overall economy have led the Federal Reserve to lower rates for the first time in four years in an effort to help the mortgage and housing industries.
In addition, previous employment reports were also revised sharply downward; with the most dramatic restatement being for June, cutting the job growth to nearly half of what was previously reported, Testerman explains. The average employment rate has fallen to under 45,000 for the last three months compared to over 145,000 for the period between January and May of 2007.
The securities industry, while not unscathed in the recent report, faired a bit better than the overall. Employment in our sector, managed to eke out a small gain, albeit against revised numbers for previous months. So while, June and July were revised downward; the numbers still show us above the 850,000 mark. Whether this level is sustainable remains to be seen, since the Bureau of Labor Statistics has been notoriously consistent in revising employment numbers downward in recent years.
See www.brokerhunter.com for further information on jobs in the securities industry.
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