Economy Alarm: Jobless Recovery: Unemployment Rate Rises to 9.8%

Jobless Recovery: Unemployment Rate Rises to 9.8%
As Democrats Tout Economic Recovery, Middle Class Americans Are Still Asking “Where Are The Jobs?”

Obama Promised He Was On Track to Improve the Federal Debt, Revive the Economy, and Save Millions of Jobs

“Obama focused on the $787 billion stimulus plan, an ambitious package of federal spending and tax cuts designed to revive the economy and save millions of jobs…. The stimulus package was a huge victory for Obama less than one month into his presidency. Still, he declared, ‘We have begun the essential work of keeping the American dream alive in our time.’… The only thing certain is that Obama is on track to boost a federal debt that stands at $10.7 trillion. Clearly mindful of that, Obama said: ‘We will need to do everything in the short term to get our economy moving again’ as well as ‘begin restoring fiscal discipline and taming our exploding deficits over the long term.’” (The Associated Press, “Obama: Stimulus lets Americans claim destiny,” 02/17/2009)

Credibility Crash: U.S. Employers Cut More Jobs Than Predicted Last Month, Leaving Americans to Question the Sustainability of the Economic Recovery

Employers cut more jobs than forecast last month and the unemployment rate rose to a 26-year high, calling into question the sustainability of the economic recovery.

The unemployment rate rose to 9.8 percent, the highest since 1983, from 9.7 percent in August, the Labor Department said today in Washington. Payrolls fell by 263,000, following a revised 201,000 decline the prior month that was more/less than previously reported.

Federal Reserve Chairman Ben S. Bernanke yesterday said the expansion may not be strong enough to “substantially” bring down unemployment, indicating the central bank will be slow to drain the trillions of dollars it’s pumped into the economy. UAL Corp. is among companies still cutting jobs on concern spending will fade as government stimulus wanes.

“The employment situation continued to deteriorate,” Rich Yamarone, chief economist at Argus Research in New York, said before the report. “Given the crummy economic climate, businesses have no incentive to turn on the hiring spigots. We suspect the economy will make a turn for the worse.”

Revisions subtracted 13,000 from payroll figures previously reported for August and July.

Payrolls were forecast to drop 175,000 in September after a 216,000 decline initially reported for August, according to the median of 84 economists surveyed by Bloomberg News. Estimates ranged from decreases of 260,000 to 100,000. Job losses peaked at 741,000 in January, the most since 1949.

The jobless rate was projected to rise to 9.8 percent. Forecasts ranged from 9.6 percent to 9.9 percent. (Bob Willis, “U.S. Employers Cut More Jobs Than Forecast; Unemployment Rises,” Bloomberg, 10/02/2009)

To read the full article, click here: http://www.bloomberg.com/apps/news?pid=20601087&sid=a6MO1rAhPYGA

###