Friday, November 6, 2009
US jobless rate rises to over 10%
In October the unemployment rate in the US rose to 10.2% highest rate since 1983. 190,000 jobs were lost in the month. President Obama is willing to sign a extended unemployment benefit. Most job losses were in construction, manufacture and retail. People who had been out of work for at least six months rose to a record 5.6 million and accounting for 35.6% of the jobless total.
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6 comments:
I think it is ridiculous that unemployment is this high! I can't believe it is has gotten this bad and nothing productive is being done to help lower it. Nothing is being done to fix the unemployment rate. Money is just being spent to help those unemployed, which is great but it is money that should be spent trying to prevent further rises in unemployment.
According to the Federal Reserve report, it will take five to six years for the unemployment rate to come down to a natural rate of unemployment. That is a very dire situation. As the Fed keeps interest rates low, some increase in spending should occur, which should move the economy forward. However, this is not happening because consumer confidence is very low. As a result, the government should intervene through fiscal policy, since monetary policy is not effective. Thus, we can see how the government actually has a role in the economy,which is to fix market deficiencies.
We know the unemployment rate is so high, but according to the graph in this article, I can clearly see this is an extraordinary high number. Obama says he will sign a legislation to extend unemployment benefit, cut taxes for businesses and extend tax credits for home buyers to lower unemployment rate. However, I doubt it will help very much to the current unemployment rate. The worst news is that nobody knows what will help the most and therefore the problem cannot be solved in a year or two as Tonya says it will take 5 to 6 years.
I was very disappointed after reading this article because I was not expecting to see the unemployment rise. Based on articles I have been reading it seemed to me as if the percentage would either remain constant or lower; I was not considering it would grow even more. Why is it we are seeing this rise at this time specifically? I understand that consumer confidence is low, but hasn't it been low since we were faced with this recession. I would think that the President would at least have unemployment numbers stay consistent or even drop, but rising unemployment is not acceptable and very discouraging.
While this article does not provide much hope for the graduating seniors but hopefully with some luck, the job market will begin to turn around now that the recession is over.
I agree with all of you. The worse part is that most of the news articles talk about different things regarding the economy. Some argue that the economy is getting better, people are losing less jobs, there has not been much decrease in jobs. So its very hard to really hard to judge where we are going with our economy. Should we as a graduating seniors have any hope?
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