May 22, 2018  
 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Small Business News for Entrepreneurs

 

Small Business Finance News

 

Unemployment Rate Rises To 9.8% Despite Spending, Income Gains

Written by Ken Gaebler
Published: 10/2/2009

Despite gains in personal spending and income, the unemployment rate rose to 9.8 percent in September.

The leading economic indicators brought mixed news for small business owners this week, with the government reporting an increase in personal income and spending despite the fact that the unemployment rate rose to 9.8 percent in September.

Entrepreneur Cash Register

The Bureau of Economic Analysis reported Thursday that personal income increased by $19.3 billion - or 0.2 percent - in August, while disposable personal income increased by $15.5 billion or 0.1 percent.

In addition, personal consumption expenditures increased $129.6 billion, or 1.3 percent. While personal income and disposable personal income showed growth similar to what was seen in July, the August growth in personal consumption expenditures was more than four times larger than the July growth.

Tempering this good news for small business owners was the unemployment report released Friday by the Bureau of Labor Statistics, which announced that the unemployment rate rose to 9.8 percent in September as nonfarm payroll employment declined by 263,000 jobs.

The largest job losses were seen in construction, manufacturing, retail trade and government.

Although the job market seems to contradict other improving economic indicators, unemployment is considered a lagging indicator and will likely be the last to see improvements in the economic recovery.

Have Friends Who Might Like This Article?

Tweet via @gaeblerdotcom Share this on Twitter

Let them know on LinkedIn

Ready to Learn More? We Think You Might Like These Articles:

 


About Our Entrepreneur News Feeds

If you liked this small business news article, you can find plenty more like it on our site. We cover important news stories for entrepreneurs. In addition to breaking news for entrepreneurs, we also have tons of helpful articles that cover common small business challenges like getting business loans, preparing a marketing plan, selling a business and much more.

 

 

Additional Resources for Entrepreneurs

Help for Native American Entrepreneurs

Resources for Gay Entrepreneurs

Businesses for Sale

Online Entrepreneur Tools

Economics

Lists of Small Business Incubators

Lists of Angel Investors