US employers shed 85,000 jobs; unemployment holds at 10%

The U.S. economy continued to shed jobs in December, according to the latest Department of Labor figures, but the official unemployment rate held steady at 10 percent. As if to put an exclamation point on these figures, shortly after they were released, shipping giant United Parcel Service announced it was cutting 1,000 positions immediately to maintain profit margins.

Nonfarm payrolls fell by a seasonally adjusted 85,000 in December, according to the Bureau of Labor Statistics' monthly report. Employment fell in wholesaling, manufacturing, and construction, while it rose in temporary help and health care.

The rise in temporary help positions might be the one piece of potentially good news in an otherwise disappointing job report, for a rise in temporary hiring usually signals that businesses are beginning to expand.

But the rest of the statistics dampen the cautious optimism engendered by November's BLS report, which showed a slight job gain for the month. While the number of unemployed persons and the unemployment rate remained steady at 15.3 million and 10 percent, the number of long-term unemployed -- those jobless for 27 weeks or longer -- continued to rise slowly, reaching 6.1 million, or 4 of every 10 unemployed workers.

In addition, the labor force participation rate fell in December to 64.6 percent, and the ratio of employment to population fell to 58.2 percent.

Meanwhile, United Parcel Service annnounced shortly after the release of the BLS figures that it would eliminate 1800 management and administrative jobs effective immediately. The company also raised its fourth-quarter earnings estimates. UPS shares rose $2.49 in premarket trading on the news.

Written by Sandy Smith
Exclusive to HULIQ.com

Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.