Oct. 2 (Bloomberg) -- The U.S. jobless rate probably rose to a 26-year high in September as employers kept cutting staff, signaling consumers will not lead the recovery, economist said before a report today.
Unemployment likely climbed to 9.8 percent, the highest since 1983, from 9.7 percent in August, according to the median estimate of 81 economists surveyed by Bloomberg News. Payrolls probably fell by 175,000 workers, the smallest drop in 13 months, they survey also showed.
Federal Reserve Chairman Ben S. Bernanke yesterday said the expansion may not be strong enough to “substantially” bring down unemployment, indicating the central bank will be slow to drain the trillions of dollars it’s pumped into the economy. UAL Corp. is among companies still cutting jobs on concern spending will fade as government stimulus wanes.
“The magnitudes of the job losses are going to continue to get smaller, but unfortunately we don’t see very much hiring going on,” said David Resler, chief economist at Nomura Securities International Inc. in New York. “Until that changes, doubts about the sustainability of this rebound in economic activity are going to linger.”
The Labor Department’s report is due at 8:30 a.m. in Washington. Economists’ payroll forecasts ranged from declines of 100,000 to 260,000.
We shall see, for those of you really interested, CNBC will release the numbers at 8:30.
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