Unemployment Hits 9.8%; Employers Continue To Shed Jobs

Unemployment Hits 9.8%; Employers Continue To Shed Jobs

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Unemployment continues to rise in the United States, hitting 9.8% in September. For the 21st consecutive month companies have shed more jobs then they created in a recession that began in December 2007.

GDP Increase Expected

housing crisisThird quarter gross domestic product (GDP) details – which will be released later this month – are likely to show an increase, a number indicating that the recession has technically come to an end. However, the higher unemployment rate, lack of job creation and continued problems in the real estate sector will make that recovery weak at best.

According to the Center on Budget and Policy Priorities – a nonprofit, nonpartisan research organization and policy institute – unemployment often doesn’t peak until well after a recession has ended. Following the 1990-1991 recession, peak unemployment was reached fifteen months after the recession ended. Following the conclusion of the 2001 recession, it took nineteen months for unemployment to peak and twenty-one months for job loss to bottom out.

September Jobs Report

The center issues a monthly job report detailing the previous month’s trends noting the following about September:

  • Job loss continues with net job losses since the start of the recession now totaling 7.2 million.
  • The unemployment rate was at 4.9% at the beginning of the recession and has since doubled to 9.8%, the highest level it has been since June 1983. However, 571,000 people have left the workforce (stopped looking for employment) which means that the unemployment rate would have been higher.
  • Most troubling is another rate which doesn’t get much mention – comprehensive alternative unemployment rate measure. This rate is factored to consider people who can’t find work and are discouraged from looking as well as people working part-time jobs because they can’t find full-time work. That rate is a whopping 17%, perhaps a truly accurate figure on just how tough the job market is right now.

More To Follow

SayEducate.com will share additional labor information as it becomes available to us. Meanwhile, check out the policy center’s website for related news.

Source: Center on Budget and Policy Priorities

Adv. — Are you looking for help to make ends meet during deepening economic troubles? SayRecession.com offers sensible information about keeping your career on track, lowering your monthly bills, managing your current debts and building good credit.  We also offer valuable tools including worksheets, home buying and selling tools, and financial aid tally sheets.

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