The worst is yet to come:frown mini Unemployed Americans should hunker down for more job losses
BY Nouriel Roubini
Sunday, November 15th 2009, 4:00 AM
Think the worst is over? Wrong. Conditions in the U.S. labor markets are awful and worsening. While the official unemployment rate is already 10.2% and another 200,000 jobs were lost in October, when you include discouraged workers and partially employed workers the figure is a whopping 17.5%.
While losing 200,000 jobs per month is better than the 700,000 jobs lost in January, current job losses still average more than the per month rate of 150,000 during the last recession.
Also, remember: The last recession ended in November 2001, but job losses continued for more than a year and half until June of 2003; ditto for the 1990-91 recession.
So we can expect that job losses will continue until the end of 2010 at the earliest. In other words, if you are unemployed and looking for work and just waiting for the economy to turn the corner, you had better hunker down. All the economic numbers suggest this will take a while.
The jobs just are not coming back. The long-term picture for workers and families is even worse than current job loss numbers alone would suggest. Now as a way of sharing the pain, many firms are telling their workers to cut hours, take furloughs and accept lower wages. Specifically, that fall in hours worked is equivalent to another 3 million full time jobs lost on top of the 7.5 million jobs formally lost.programs and are staying in them longer.
Answer by mustbeGRACE at 8:26 AM on Nov. 19, 2009
Answer by mustbeGRACE at 8:27 AM on Nov. 19, 2009
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Answer by Carpy at 8:38 AM on Nov. 19, 2009
"But more than 1 million people will run out of unemployment benefits in January unless Congress quickly extends federal emergency aid, a nonprofit group said Wednesday. "
Answer by Anonymous at 9:20 AM on Nov. 19, 2009
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Answer by mancosmomma at 9:53 AM on Nov. 19, 2009
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