In November 2008 the U.S lost half of a million jobs, this is the worst one month decrease in employment since 1974. This news comes as the U.S prepares to face a recession predicted to last through 2009. In total employers have shed 1.3 million jobs since September. Recently figures show that the um employment rate has risen again from 6.5% to 6.7%. This is one of the worst recessions we have seen in the U.S since the great depression.
The jobless rate has increased as discouraged job seekers actively searching for jobs have started to give up hope. The number of people who were actively searching for work, but have since given up, increased from 11.8% in October to 12.5% in November. President elect Barack Obama steps into a challenging economic environment."There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better," he said.
The economy is contracting sharply as consumers weary of the current economic climate have dramatically decreased there spending. Retailers are taking the grunt as many stores are struggling to survive the storm. In order to get the economy back on track two main factors need to be addressed. First is stabilization in the housing system and second is unclogging the credit crunch. Strategic moves by the Fed and the U.S treasury along with the 700 billion fiscal stimulus package should help get the economy back on its feet. The worst is far from over as economists expect the unemployment rate to hit 8% over the next year. This is a very challenging time for job seekers and it is only going to get worse in the near future.
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