Jobless rate hits 5.5 per cent in the U.S.

Praxius

Praxius

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Dec 18, 2007
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http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080606/us_jobs_080606/20080606?hub=World

WASHINGTON -- The U.S. unemployment rate jumped to 5.5 per cent in May -- the biggest monthly rise since 1986 -- as nervous employers cut 49,000 jobs.

The latest snapshot of business conditions showed a deeply troubled economy, with dwindling job opportunities in a time of continuing hardship in the housing, credit and financial sectors.

With employers worried about a sharp slowdown and their own prospects, they clamped down on hiring in May, said Friday's report from the Labor Department. The unemployment rate soared from five per cent in April to 5.5 per cent in May. That was the biggest one-month jump in the rate since February 1986. The increase left the jobless rate at its highest since October 2004.

The big jump in the unemployment rate surprised economists who were forecasting a tick-up to 5.1 per cent. Payroll losses, however, weren't as deep as the 60,000 that analysts were bracing for. Still, job losses in both March and April turned out to be larger than the government previously reported. Employers now have cut payrolls for five straight months.

The 5.5 per cent rate is relatively moderate judged by historical standards. Yet, there was no question that employers last month sharply cut jobs in manufacturing, construction, retailing and professional and businesses services. Those losses swamped gains elsewhere, including in the education and health fields, government and leisure and hospitality.

The government said the number of unemployed people grew by 861,000 in May -- rising to 8.5 million. The over-the-month jump in unemployment reflected more workers losing their jobs as well as an increase in those coming into the job market to look for work, the Bureau of Labor Statistics said.

A year ago, the number of unemployed stood at 6.9 million and the jobless rate was 4.5 per cent.

A trio of crises -- housing, credit and financial -- have rocked the economy. That's caused economic growth to slow to a crawl as businesses and consumers have tightened their belts. Spiraling energy costs are another negative force.

The country's economic problems are a top concern for voters -- and thus for President Bush, legislators on Capitol Hill and those vying to win the White House this fall.

So far this year, the government said, job losses have totaled 324,000.

Workers with jobs, however, saw modest gains.

Average hourly earnings for jobholders rose to $17.94 in May, up 0.3 per cent from the previous month. Economists were forecasting a 0.2 per cent gain. Over the last 12 months, wages have grown by 3.5 per cent.

With food and energy prices marching upward, paycheque aren't stretching as far. Although tax rebates helped to energize shoppers and give major retailers better sales in May, analysts still believe that anxious consumers will be keeping a close watch on their purchases and their budgets in the months ahead.

Worried about inflation, Federal Reserve Chairman Ben Bernanke has signalled that the central bank's rate-cutting campaign, which commenced last September to help bolster the economy, is probably over for now.

Fed officials and the Bush administration are hoping that the Fed's powerful doses of rate reductions and the government's $168 billion stimulus package, including tax rebates for people and tax breaks for businesses, will pull the economy out of its deep funk in the second half of this year.

Even if that happens, the unemployment rate is expected to climb to six per cent or higher early next year. Employers won't want to ramp up hiring until they feel more sure that an economic recovery has strong legs.
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MikeyDB

House Member
Jun 9, 2006
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Are these job-cuts taking place at the income level of say 250,000.00 and up or are they fixed on the lowest wage earners?

During the Depression the wealthy drank wine while the poor starved....

Nothing's changed......
 
Praxius

Praxius

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One other factor people need to take notice in this issue of unemployment in the US, is that not everybody is recorded in this study and the unemployment is actually much higher then this..... because they register those taking unemployment insurence and welfare, etc.... but once this stuff runs out for people, they are no longer registered, so how many more people are unemployed that are not being counted?
 
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MikeyDB

House Member
Jun 9, 2006
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Perhaps Americans should think about emmigrating to China...or Bangladesh or Sri Lanka....

General Motors thinks that this is the best strategy....

It would be fun seeing Americans recive the pay of those who labor for the Gap and Addidas and so many wonderful companies that Americans like to support.
 
Blackleaf

Blackleaf

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Oct 9, 2004
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It looks like the US is in a recession. Even Britain, which has been the healthiest economy in the G7 (US, Japan, Germany, Britain, France, Italy and Canada), may end up experiencing its first recession in about 15 years.

Britain is the only G7 country to have never been in recession since 1997.

So when even Britain's economy shrinks, then times must be bad.
 
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MikeyDB

House Member
Jun 9, 2006
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I'll celebrate when the gasoline pumps go dry and people in the Land of the Free and the Home of the Brave live like billions around the world.... on the verge of a poverty that means life or death.

Nothing seems to make an impact on the way people think like direct suffering. Americans should conscipt Paris Hilton and all the really knowledgeable people they worship to go fight in Iraq.... Put Opra Winfrey on a fifty cal. and fly her into the streets of Darfur.

Oh yeah I forgot...

People see something on the TV and think they're watching "Survivor" or "American Idol".... when it's actually the news!
 
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L Gilbert

L Gilbert

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Yeah. Those people at the top think rather irrationally. Oil companies are laying people off, yet they are making record profits. Explain this to me someone, please? How does this make sense?
Also, last I heard was that profit was the incentive to make a good product or deliver a good service. Why is General Motors getting corporate welfare? (I mean other than the fact that they can leverage the gov't by saying, "If you don't give us money, we will start laying everyone off". Stupid. It's like expecting employees to give back some of their paycheck without getting something in return. There's no guarantee that they won't lose their job anyway). I like corporations like Westjet, "No we don't need a handout. We work for our money".
 
Walter

Walter

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MikeyDB said:
I'll celebrate when the gasoline pumps go dry and people in the Land of the Free and the Home of the Brave live like billions around the world.... on the verge of a poverty that means life or death.
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I'll celebrate when everyone can live like the Americans.
 
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