For anybody concerned about the prospects for the U. S. economy following whatever sort of recovery we eventually summon up, these words have got to be about as worrisome as any:
Job Cuts Outpace GDP Fall
The job market is doing even worse than the overall economy, prompting concern inside and outside the government that deeper-than-expected joblessness could persist once the recession ends.
Breaking from historical patterns, the unemployment rate — currently at 9.5% — is 1 to 1.5 percentage points higher than would be expected under one economic rule of thumb, says Lawrence Summers, President Barack Obama’s top economic adviser. Since the recession began in December 2007, the economy has lost 6.5 million jobs, 4.7% of total employment. The unemployment rate has jumped five percentage points, while the economy has contracted by roughly 2.5%.
Businesses don’t take on employees for the fun of it. They hire when they want to produce more, sell more, or perform more services. If they’re producing, selling, or serving at about the same level without the 4 million employees they’ve laid off, don’t expect them to hire them back any time soon.
This makes me extremely grateful that I managed to find a job 2-3 weeks ago.
Congrats Brett.
Un-noticed in the MSM. Part time workers disproportionately high. When thing recover, first comes full hours for these guys, then new hires.
Prediction: unemployment goes well over 10% and stays quite awhile.
Quick hit. Must go back to work.
That’s my take, too. Very, very bad.