US Unemployment facts – Economists Give Hope Amidst Turbulent Times

The unemployment scene in the US is apparently going from bad to worse. According to statistics revealed by Treading Economics, the current unemployment rate stands at a staggering 10.2 percent – this unemployment rate is expected to creep up even further in the coming weeks and months. Since April 2008 the unemployment rate has moved up sharply from 4.9 percent to 10.2 percent in October-November 2009. This rate currently stands at a twenty six year high with employers being forced to slash more jobs than what experts had earlier predicted.

According to the Bureau of labor statistics a total of twenty nine states witnessed an increase in overall unemployment from last month. Whereas just thirteen states witnessed a decrease in unemployment and the remaining eight states had no change from last month. In total, the overall unemployment has creped up by 0.4 percent in the month of Sep-to-Oct.

The 7.3 million job cuts marked the beginning of a chaotic recession in December 2007. On the brighter side the panelists at the National Association for Business Economics (NABE) are predicting that the unemployment scene will begin to look up in the first quarter of the year 2010. The 48 NABE panelists are predicting a growth in GDP of 3.2 percent by early next year.

Also, President Barack Obama’s $787 billion stimulus package is said to have a positive impact as it is targeted at kick starting economic growth and encouraging the creation of 640,000 new jobs. However, ironically there seems to be an odd misalignment between economic growth and the current employment scenario – this is the 22nd straight month in which payroll cuts have increased; the economy and productivity improved by a good 3.2 and 9.5 percent respectively in the third quarter.

Currently, the US job market is surely on a steep downward trend; however, economists seem to be optimistic about what the next year has in store for the average working American.

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