Money Matters, Simplified.
Unemployment rate highest since 1983
by Jamie Anderson - June 6, 2009 - comments
Many economic indicators, like the consumer confidence index, the sales in the housing industry, point to that fact that the recession is bottoming out. The decline in the unemployment rate is the latest in a series of signs that the economy is ready to bounce back
Washington, June 6: The U.S. economy cut 345,000 jobs last month alone. The count of total jobs lost in the current economic recession is 6 million. The unemployment rate, at 9.4 percent in May, has risen to the highest level since 1983.
Ray of hope
Amid all this gloomy data revealed by the Labor Department Friday, there is a silver lining. The 345,000 jobs that were shed in May were the least since the September of 2008. The figure is also half the average number of jobs hacked in the previous six months.
So, while millions of Americans rendered unemployed by the unrelenting recession continue to seethe in pain, there is a glimmer of hope. The pace of job loss in the U.S has significantly slowed in May, reinforcing hopes that the worst is behind us.
Housing sales are up and so is the consumer confidence. The stock markets have bounced back after hitting a 12-year low in March. All these factors indicate that the economy is starting to turn around.
"The pace of the recession finally seems to be slowing," declared Andrew Stettner, deputy director of the National Employment Law Project.
Sung Won Sohn, an economist at Cal State Channel Islands, said of the optimism about the future, “The psychology has improved significantly because of the massive economic stimulus program. That's one of the reasons why layoffs are slowing down."
Recovery not so soon
Experts opine that even as the recession wanes, more job losses may be on the anvil. In fact, the rate of unemployment may be amongst the last indicators to improve even as recovery creeps in, they opine.
Stettner added, "But with the unemployment rate climbing, it should be abundantly clear that the job market is in a hole that could take years to climb out of."
Labor Secretary Hilda Solis observed that dislocated employees have a tough time getting back into the labor force. She said, “It's not going to turn around as quick as you and I would like to see it."