By: Carole Fleck | Source: AARP Bulletin Today | October 2, 2009
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The labor market worsened in September and pushed the nation’s unemployment rate to 9.8 percent, its highest level since June 1983, the government reported Friday.
But for workers age 55 and up, the jobless rate remained unchanged at 6.8 percent in September. About 70,000 more were employed than last month, for a total of 27.2 million.
Overall, the jobless rate rose from 9.7 percent in August after some 263,000 jobs were cut last month. The biggest losses were in construction, manufacturing, retail and government, according to the Bureau of Labor Statistics.
The September report marks an end to three straight months in which nonfarm job losses had declined. In August, 201,000 jobs were lost, an improvement from 304,000 in July and 463,000 in June.
Sara Rix, a policy adviser at AARP, says the data for the 55-plus age group suggests that older people are remaining in the workforce longer and delaying retirement.
“Given the losses to retirement savings, the inability to save, insecurity about the future with regard to their retirement savings, it seems older people have made the decision to remain at work or to keep working as long as they possibly can,” Rix says.
“More older people are also sticking with the job search, as long and painful as that job search may be.”
Indeed, in September, it took older workers an average 32.8 weeks to find a job, up from 30.4 weeks in August. For others in the labor force, it took 27.2 weeks to land a job.
The long-term unemployment rate for older workers—those out of work 27 weeks or more—also rose from 44 percent in August to 47 percent last month. That’s double from December 2007, when 23 percent were without a job for 27 weeks or more, Rix says.
Since the start of the recession in December 2007, job losses have piled up nearly without interruption. It has grown by 7.6 million, and now stands at 15.1 million.
The weak labor market has put about 52 percent of unemployed workers in a tailspin: They’ve exhausted their jobless benefits.
The House recently passed a bill that would provide another 13 weeks of unemployment benefits, but a similar bill in the Senate has stalled amid questions about whether it should only cover people in states with the highest jobless rates.
Carole Fleck is a senior editor at the AARP Bulletin.
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