"We watch unemployment carefully, because it affects bank recovery and lending ability. Unemployment fed the foreclosure crisis and has hurt community bank stability. This in turn hurts lending to small businesses, which affects the economy further.
San Francisco, CA (PRWEB) December 12, 2012
The Department of Labor’s Bureau of Labor Statistics released the November Employment Situation Summary on Friday December 7th, showing an increase of 146,200 non-farm payroll jobs in the month of November, with unemployment dropping to just 7.7 percent which is the lowest unemployment reading since December 2008.
Terry Robinson, President of The Lending Circle, said, "We watch unemployment carefully, because it affects bank recovery and lending ability. Unemployment fed the foreclosure crisis and has hurt community bank stability. This in turn hurts lending to small businesses, which affects the economy further and contributes to unemployment or the inability to hire."
The net increase in November was comprised of a gain of 147,200 jobs in the private sector and a loss of 1,000 jobs in the government sector. This report is the 33rd consecutive month that there has been positive job growth in the private sector.
Less optimistic were the October and September job figures which were both revised downwards. The October net increase dropped from 171,000 to 138,000, while the September number dropped from 148,000 to 132,000.
However, there was little change in the number of discouraged workers, those who have stopped searching for employment. November 2012 showed 979,000 such workers, which was the same reading as November 2011. Also unchanged was the number of long term unemployed, which remained at 4.8 million. These unemployed workers account for 40.1 percent of the unemployed population. Finally, the number of workers who are involuntarily part time due to an inability to locate full time work remained unchanged with a total of 8.2 million such workers.
Were there any bright spots in the latest report? The greatest growth in net jobs was to be found in the retail sector (52,600), followed by professional and business services (43,000) and leisure and hospitality (23,000). Also showing growth were the education and health services (18,000), wholesale trade (13,100), information (12,000), mining and logging (5,000), transportation and warehousing (3,500), other services (3,000), and financial activities (1,000) sectors. Losses were experienced in construction (20,000), manufacturing (7,000), and the government (1,000) sectors. There was no change in employment in the utilities sector.
Hurricane Sandy was not considered to have had an impact on the November employment figures, with the Employment report stating, “Our survey response rates in the affected states were within normal ranges. Our analysis suggests that Hurricane Sandy did not substantively impact the national employment and unemployment estimates for November.”
About The Lending Circle
The Lending Circle, a division of Sunovis Financial, works to address the great pent-up need for financing nationwide, and will help borrowers with their needs whatever they may be. Their broad network of lenders is positioned to provide capital where it can do the most good.