U.S. jobless rate stands at 9.7%; ‘discouraged worker’ levels increase

The U.S. economy lost 36,000 jobs in February and the national unemployment rate held steady at 9.7% with the number of unemployed persons unchanged at 14.9 million, according to a Friday report from the U.S. Department of Labor.

“Employment fell in construction and information, while temporary help services added jobs. Severe winter weather in parts of the country may have affected payroll employment and hours; however, it is not possible to quantify precisely the net impact of the winter storms on these measures,” noted the DOL statement.

The government said employment in manufacturing was “essentially unchanged” in February, with gains in smaller manufacturers offset by job losses in the auto industry.

Other key stats:
• Among the major worker groups, the unemployment rates for adult men (10%), adult women (8%), whites (8.8%), blacks (15.8%), Hispanics (12.4%), and teenagers (25%) showed little to no change in February. The jobless rate for Asians was 8.4%, not seasonally adjusted.

• The number of long-term unemployed (those jobless for 27 weeks and over) was 6.1 million in February and has been about that level since December. About 4 in 10 unemployed persons have been unemployed for 27 weeks or more.

• The number of persons working part time for economic reasons (sometimes referred to as involuntary part-time workers) increased from 8.3 to 8.8 million in February, partially offsetting a large decrease in the prior month. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

• About 2.5 million persons were marginally attached to the labor force in February, an increase of 476,000 from a year earlier. These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12
months. They were not counted as unemployed because they had not searched for
work in the 4 weeks preceding the survey.

• Among the marginally attached, there were 1.2 million discouraged workers in February, up by 473,000 from a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.3 million persons marginally attached to the labor force had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

“Today’s numbers underscore that we still have work to do before we can be sure that all Americans have access to good jobs. Today’s report also shows positive signs that the economy is moving in the right direction. For example, we see continued growth in employment in the health care and manufacturing sectors,” U.S. Secretary of Labor Hilda L. Solis said in a statement.

The Retail Industry Leaders Association issued a report saying federal policy uncertainties related to healthcare and other matters slow business growth.

"Today’s data show a job market that is stabilizing but has not yet broken out into a sustained expansion," Phillip Swagel, a visiting professor at Georgetown University’s McDonough School of Business and RILA outside economist, said in a statement. "Severe winter storms in February held down hiring and obscured a firming employment picture, but the U.S. economy will still need a long stretch of strong growth to make up for the millions of jobs lost in this recession. Policy uncertainties especially continue to hang over employers and weigh down business investment and hiring."

However, the RILA pointed to several areas that suggest economic improvement, including “Solid GDP growth of nearly 6 percent at the end of 2009,” home price stabilization, recent nationwide reduction in delinquencies and foreclosures, and the recent rise in spending by businesses on equipment and software.