Jobapalooza

State unemployment numbers are out for August, and they continue to be dismal. Five states now have nominal unemployment rates of 12% or higher, meaning working U-6 numbers of over 20% unemployed/underemployed. Michigan is at 15.2%, meaning that U-6 number there is closing in on 25%.

Michigan led the nation in unemployment, with a rate of 15.2%, while Nevada was next at 13.2% and Rhode Island was third at 12.8%. California and Oregon were tied for the fourth spot, each with unemployment at 12.2%.

"The losses tend to be heavy in states that have a high concentration of manufacturing jobs or were hit hard by the housing bust," said Mark Vitner, economist at Wachovia.

In August, 27 states and the District of Columbia recorded month-over-month unemployment rate increases, while 16 states posted a decrease in unemployment and seven saw rates hold steady.

The total number of nonfarm jobs fell in 42 states and the District of Columbia, while 8 states saw an increase.

The state-by-state unemployment report for August came after the government reported earlier this month that American employers cut 216,000 jobs in August, sending the nationwide unemployment rate to 9.7% from 9.4% in July.

14 states and D.C. now have double digit unemployment. Eight more states are at the 9.0% mark. There will be no recovery without consumer spending, there will be no consumer spending without housing market stabilization, there will be no housing market stabilization without the job market recovering, there will be no job recovery until consumer spending picks up.

Negative spirals suck.