US employers added 171,000 new jobs in October

October saw employers add 171,000 new jobs, the 32nd straight month of growth, according to this morning's report by the Bureau of Labor Statistics. Job seekers were more optimistic, as 578,000 of them joined (or rejoined) the labor force. Because of the growth in labor force participation, the unemployment rate was essentially unchanged, rising just one tenth of one percentage point to 7.9 percent.

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The employment story among subgroups remains essentially the same. Unsurprisingly, whites, Asians, and the more highly educated continue to have lower unemployment rates than African Americans or Hispanics, teenagers, or those without high school diplomas. The unemployment rates for blacks and those without high school diplomas actually rose .9 percentage points, while the rates for most other groups were relatively stable.

The greatest numbers of new jobs in October were in retail, education and health services, and leisure and hospitality. Industries that lost jobs included mining and logging, the auto industry, and government.

The national economy is limping forward as Maryland's economy continues to deliver moderately good news. However, the future of this recovery depends in large part on what Congress does or does not get done in the next six months. The threat of sequestration, combined with expiring tax cuts and other measures, looms over every economic model and state budget. Last months' Spending Affordability briefing highlighted the potential negative effects of Congressional inaction: $117.6 million in lost direct federal aid, up to 60,000 lost jobs, and a further $635 million in lost state revenue due to smaller state income and sales tax collections.