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Wondering how bad it is and what to do?

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.

Answer Question

Asked by mustbeGRACE at 8:22 AM on Nov. 19, 2009 in Politics & Current Events

Level 25 (23,140 Credits)
Answers (11)
  • 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 8:25 AM on Nov. 19, 2009

  • This is very bad news but we must face facts. Many of the lost jobs are gone forever, including construction jobs, finance jobs and manufacturing jobs. Recent studies suggest that a quarter of U.S. jobs are fully out-sourceable over time to other countries.

    Other measures tell the same ugly story: The average length of unemployment is at an all time high; the ratio of job applicants to vacancies is 6 to 1; initial claims are down but continued claims are very high and now millions of unemployed are resorting to the exceptional extended unemployment benefits programs and are staying in them longer.

    Answer by mustbeGRACE at 8:25 AM on Nov. 19, 2009

  • Based on my best judgment, it is most likely that the unemployment rate will peak close to 11% and will remain at a very high level for two years or more.

    The weakness in labor markets and the sharp fall in labor income ensure a weak recovery of private consumption and an anemic recovery of the economy, and increases the risk of a double dip recession.
    The damage will be extensive and severe unless bold policy action is undertaken now.

    Roubini is professor of Economics at the Stern School of Business at New York University and Chairman of Roubini Global Economics.

    Top economic prognosticator says job seekers

    must face grim economic facts

    Answer by mustbeGRACE at 8:26 AM on Nov. 19, 2009

  • Many people could and would be hired if small businesses had their taxes lowered.

    Jobs are the answer!

    Answer by mustbeGRACE at 8:27 AM on Nov. 19, 2009

  • Isn't Obama supposed to fix it?

    Answer by Anonymous at 8:31 AM on Nov. 19, 2009

  • Obama claims he will fix it but everything he has done and wants to do is completely opposite of a fix.

    Answer by Carpy at 8:38 AM on Nov. 19, 2009

  • shruggingGrim indeed.  

     "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

  • I agree.... I think we need to concentrate more on the long term recovery of jobs in the US before we continue with the health care reform stuff! It makes me nuts that we are so focused on health care when the real problem is jobs.... I say reform taxes to create jobs and if you are going to funnel money any place- it should be into unemployment!

    Answer by wildboyz1994 at 9:30 AM on Nov. 19, 2009

  • I think more people could be hired if companies were willing to train and supply tools. My DF has been outta work for almost a year and every place he has gone to wants you to be certified and supply your own tools. They are not willing to hire. He went to the VEC yesterday and said there were over 500 job listings just in the mechanics field and every place he went to apply they had already recvd like 300 application for just one job. He has over 250 resumes out and has not been called on one. It's like companies have job openings but are afraid to hire cause there are not sure how business is going to be next week or next month.

    Answer by Mom2Joseph2007 at 9:50 AM on Nov. 19, 2009

  • Unemployment going up, deficit going up, and the government is proposing billion dollar programs and taxing the shit out of those people who actually have enough money to CREATE jobs and expand business.

    Sounds like a sound financial plan. *sarcasm*


    Answer by mancosmomma at 9:53 AM on Nov. 19, 2009

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