Friday, June 06, 2008
Unemployment rises AGAIN
The nation's unemployment rate jumped to 5.5 percent in May as employers cut 49,000 jobs bringing the number of unemployed (on the grid) to 8.5 million. That is the biggest monthly rise since February 1986. Dwindling job opportunities, continuing hardship in the housing, credit and financial sectors show a deeply troubled economy. The big jump in the unemployment rate surprised economists but payroll losses were not as deep as predicted. A big deal since employers have cut payrolls for five straight months. The White House expressed disappointment while trying to put a positive spin on it. "It is a number that is too high in our view but it is lower than the average of the last three decades." The country's economic problems are a top concern for voters and those vying to win the White House this fall. There has been a lot of talk about whether the economy has fallen into its first recession since 2001. That determination is usually made well after the fact. The average American's net worth is lower, their purchasing power is lower and it is tough to find/keep a job... is there really still a debate about whether the economy is in a recession?