Chemical jobs slip in August as US unemployment edges higher

03 September 2010 14:35  [Source: ICIS news]

WASHINGTON (ICIS)--The chemicals sector saw a narrow increase in job losses in August as the overall US unemployment rate edged up to 9.6% from the 9.5% reported for July, the Labor Department said on Friday.

However, the plastics and rubber industry added some 1,600 workers during the month (seasonally adjusted), a gain in that sector of 1.6%.

Employment in chemicals manufacturing fell by only 100 positions, according to the department’s data, a razor-thin decline of 0.1%.

The department said that 778,800 workers were employed in the US chemicals industry last month while 638,700 personnel were on the job in plastics and rubber production.

Overall, US non-farm payroll fell by 54,000 jobs in August, the department said in its monthly employment situation report.

Private sector employers added 67,000 workers during the month, but that gain was more than offset by a cut of 114,000 government jobs in August as work on the nearly completed 2010 census wound down.

August’s gain of 67,000 jobs in the private sector was a plus, but it was lower than the 71,000 jobs added in July and was not sufficient to lower the overall jobless rate.

The US should see private sector job growth of about 100,000 per month just to accommodate new workers entering the market.

Until the economy can begin to generate job growth well in excess of 100,000 monthly, the national unemployment picture is not expected to improve.

With the net loss of 54,000 jobs in August, the national unemployment rate increased from July’s 9.5% to 9.6% and marks the first rise in the jobless rate since April.

US recession unemployment peaked at 10.1% in October 2009, eased to 10% for November and December, and then fell to 9.7% in the first quarter of this year.

The jobless rate had eased further to 9.5% for June and July before inching up to 9.6% for August, according to the department’s records.

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By: Joe Kamalick
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