The job market numbers were released by the BLS last week and it?s not looking good.  The report paints a picture of what it looked like in the last official recession in 2001. 

Payrolls fell by 63,000 and the unemployment rate dropped slightly, from 4.9% to 4.8%.   You could argue that the unemployment rate should be higher, but it is largely due to the numbers in the labor force leaving the market.  Overall it?s been the largest loss in about 5 years and a strong indicator that the troubled economy has reached the job market.

A few highlights from the report:

• Payroll employment has now dropped two months in a row and three consecutive months in the private sector.
• December and January payroll counts were revised down by 46,000.
• The population in the workforce fell from 66.1% to 65.9%; the share of the population employed is down 0.5 percentage points compared to one year ago.
• Had the 450,000 people who left the labor force last month been counted among the unemployed, the jobless rate would have been 5.1% instead of 4.8%.
• Most industries shed jobs last month; a measure of industry hiring activity is at its lowest level in almost five years.
• Employment fell in core service industries, including retail sales and offices.
• Employers are downsizing temporary workers: employment in the sector was down 28,000, the largest loss in five years.
• The number of part-time workers who would prefer full-time jobs?a measure of underemployment?is up over 600,000 over the past year.
• Both employment and total hours worked in the economy are shrinking in traditional recessionary patterns.

At this point, we can be pretty certain that it?s a matter of time until the recession is officially recognized.  Historically, once payrolls begin to grow less than 1% on a yearly basis, the economy has been in and is headed for recession.

Are we ready?  Is the Unemployment Insurance system ready to meet the needs of displaced workers?  Will a new resident at 1600 Pennsylvania Avenue be ready and able to turn this around?