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SMALL BUSINESS
Jobless Rate Jumps to 8.5 Percent
By JEANNINE AVERSA
, AP
posted: 313 DAYS AGO
filed under: Financial Crisis
WASHINGTON (April 3) - The U.S. unemployment rate jumped to 8.5
percent in March, the highest since late 1983, as a wide range of
employers eliminated a net total of 663,000 jobs.
The Labor Department's report is fresh evidence of the toll the
recession has inflicted on America's workers and companies. Most
economists expect the job cuts will continue for much of this year.
The latest tally of job losses, released Friday, was slightly
higher than the 654,000 that economists expected. The rise in the
unemployment rate matched expectations.
Since the recession began in December 2007, the economy has lost
a net total of 5.1 million jobs, with almost two-thirds of the
losses occurring in the last five months.
The number of unemployed people climbed to 13.2 million in
March. In addition, the number of people forced to work part time
for "economic reasons" rose by 423,000 to 9 million. That's
people who would like to work full time but whose hours were cut
back or were unable to find full-time work.
If part-time and discouraged workers are factored in, the
unemployment rate would have been 15.6 percent in March, the
highest on records dating to 1994.
Looking forward, economists expect monthly job losses continuing
for most - if not all of - this year.
However, they are hoping that payroll reductions in the current
quarter won't be as deep as the roughly 685,000 average monthly job
losses in the January-March period.
In the best-case scenario, employment losses in the present
quarter would be about half that pace, some economists said. That
scenario partly assumes the economy won't be shrinking nearly as
much in the present quarter.
The deterioration in the jobs market comes despite a few hopeful
signs recently that the recession - now the longest since World War
II - could be easing.
As the economic downturn eats into their sales and profits,
companies are laying off workers and resorting to other cost-saving
measures. Those include holding down hours, and freezing or cutting
pay, to survive the storm.
The average work week in March dropped to 33.2 hours, a new
record low, according to the federal data.
Job losses were widespread last month. Construction companies
cut 126,000 jobs. Factories axed 161,000. Retailers got rid of
nearly 50,000. Professional and business services eliminated
133,000. Leisure and hospitality reduced employment by 40,000. Even
the government cut jobs - 5,000 of them.
Education and health care were the few industries showing any
job gains.
Federal Reserve Chairman Ben Bernanke said the recession could
end later this year, setting the stage for a recovery next year, if
the government is successful in bolstering the banking system.
Banks have been clobbered by the worst housing, credit and
financial crises to hit the country since the 1930s.
Even if the recession ends this year, the economy will remain
frail, analysts said. Companies will have little appetite to ramp
up hiring until they feel the economy is truly out of the woods and
any recovery has staying power.
Given that, many economists predict the unemployment rate will
hit 10 percent at the end of this year. The Fed says unemployment
will remain elevated into 2011.
Economists say the job market may not get back to normal -
meaning a 5 percent unemployment rate - until 2013.
"There's going to quite a long haul before you see the jobless
rate head down," said Bill Cheney, chief economist at John Hancock
Financial Services.
To brace the economy, the Fed has slashed a key bank lending
rate to an all-time low and has embarked on a series of radical
programs to inject billions of dollars into the financial system.
And the Obama administration had launched a multi-pronged
strategy to turn the economy around. Its $787 billion stimulus
package includes money that will flow to states for public works
projects, help them defray budget cuts, extend unemployment
benefits and boost food stamp benefits.
The administration also is counting on programs to prop up
financial companies and reduce home foreclosures to help turn the
economy around.
On the economic front, some glimmers of hope have emerged
recently.
Orders placed with U.S. factories actually rose in February,
ending a six straight months of declines, the government reported
Thursday. Earlier in the week, there was better-than-expected
reports on construction spending and pending home sales. And last
week a report showed that consumer spending - an engine of the
economy - rose in February for the second month in a row - after a
half-year of declines.
Still, skittish employers announced more job layoffs this week.
3M Co., the maker of Scotch tape, Post-It Notes and other
products, said it's cutting another 1,200 jobs, or 1.5 percent of
its work force, because of the global economic slump. Fewer than
half the jobs will be in the U.S., but include hundreds in its home
state of Minnesota. The 1,200 figure includes cuts made earlier in
the first quarter.
Elsewhere, healthcare products distributor Cardinal Health Inc.
said it would eliminate 1,300 positions, or about 3 percent of its
work force, and semiconductor equipment maker KLA-Tencor Corp. said
it will cut about 600 jobs, or 10 percent of its employees.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-04-03 05:22:43
COMMENTS ( 650 )
International Business Editor says......Conspiracy theorists will love it.....
Steve Watson..
Infowars.net....
Saturday, April 4, 2009....
The international business editor of the London Telegraph has today penned a piece admitting that the fallout of the G20 summit sets the stage for a global central bank and a global fiat currency.
After yesterdays widespread announcement of a new world orderÃÂ by the worlds media, Ambrose Evans-Pritchard of the Telegraph writes The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity...
The economic analyst points to a clause in Point 19 of the communique issued by the G20 leaders, saying it amounts to revolution in the global financial order....
We have agreed to support a general SDR allocation which will inject $250bn (̣̉170bn) into the world economy and increase global liquidity, The clause states.
SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century......................âIn effect, the G20 leaders have activated the IMFs power to create money and begin global quantitative easing. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it.............. Evans-Pritchard comments
9:10AM Apr 4 2009
We are now in a Socialist Government here in the United States@@@@@@@ YOU THINK THAT "NOW" WE'RE IN A SOCIALIST GOVERNMENT??? WHAT WAS IT WHEN BUSH WAS IN OFFICE?? HE TAXED THE HELL OUT OF THE MIDDLE CLASS TO GIVE THE RICH TAX BREAKS AND CUTS. IT WAS SOCIALISM REVERSED. NOW OBAMA IS IRREVERSING IT. NOW THE RICH KNOWS WHAT IT FEELS LIKE TO GET F**KED!!!