US Job Losses Increasing

Recent figures revealing the total number of US job cuts last month recently came in at a staggering 476,000. These figures were significantly worse than forecasted by the Department of Labour and unemployment levels now looks set to hit 10%. In the past month, the jobless rate rose from 9.4% to 9.5% providing uncertainty about the state of the US labour market.

Amidst the current recession, the US economy is still struggling to get to grips with wide ranging effects that the economic crisis is having on industry. Since the start of the US recession, approximately 7.2 million people have become unemployed according to Department of Labour statistics. This is the highest rate observed since 1983.

Recently, President Obama expressed his concerns about current levels of unemployment and announced that more ‘would be done’ to try and create jobs after the stabilization of the financial markets. However, at the same time as finance sectors are starting to feel some stability job losses are still increasing with a total of 14.7 million people unemployed as of last month.

Economic advisors to the President have stated that the job market is ‘terrible’ and it has been seen by as terrible,  as the unemployment figures continues to fluctuate according to economic analysts and also the Department of Labour.

At the same time however, the US Department of Labour said that the number of benefit claims actually dropped in the past week to 7.7 million. This provides some optimism, but it does prove the fact that the economic recovery of the United States looks set to be a long process to both bottom out, and it will take even longer to recover compared to other markets. However, with domestic demand for workers slowly increasing, there is at least some light at the end of the tunnel.

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