We’ve Surpassed 10% Before 2010by Tim Manni
The unemployment rate has surpassed the 10% mark for the first time since 1983, two months earlier than many had widely predicted. The jobless rate increased to 10.2% in October from 9.8% the month prior.
The Numbers Are Grim
October marked the 22nd straight month that the country has reported job losses — the longest continuing record in 70 years, according to MaketWatch.com. The number of jobs lost since the recession began has reached 7.3 million.
Unemployment rose by 558,000 to 15.7 million, the government said. Of those, 5.6 million had been out of work longer than six months, representing a record 35.6% of the unemployed. Later Friday, President Barack Obama will sign a law extending unemployment benefits to as much as 99 weeks in hard-hit states.
The bill in which President Obama is scheduled to sign today will provide an extension of up to 20 additional weeks of unemployment benefits.
What Does This All Mean?
The “alarming” increase (as classified by Moodys.com) in the unemployment rate shows that while the economy is pulling itself out of the recession, the job market hasn’t improved, and is frankly getting worse. While production is growing in some sectors, employers have not been able, or have been unwilling, to add to their workforce. Productivity leaped up to 9.5% during the third quarter, meaning that more is being produced from fewer workers. For some, there’s no need for new hires as of yet.
Markets like real estate and retail will continue to remain in limbo until the job market picks up. Consumer confidence is wrapped so very tightly around the job market that both real estate and retail may not have a chance to recover (over a long period) until job losses at least stabilize.
Can anyone share any good news regarding jobs?