U.S lost about 524,00 jobs in december, this created fear among the employers. The unemployment rate rose 50% as compared to last year. This increase in unemployment rate started in october. Such increase in just 3 months happened for the first time after 1980. Companies are struggling to keep up their sales and have lost access to loans.
“The simplest way for a company to hoard cash is to drain their inventories and fire their workers,” said Robert J. Barbera, chief economist at the Investment Technology Group, a research and trading firm, “and everywhere you look, that is what is happening.”
Total jobs lost in recession totals upto 2.59 million and more are expected in coming months. During the month of December thousands of people struggled to get full time jobs, however all they could manage to get was part time jobs. This must be kept in mind that this is just the start of recession and no deterioration in unemployment rate could be seen in near future. If part time workers are added then the rate will rise from 12.6 to 13.5 in November.
“What happened to jobs in the fourth quarter tells us unmistakably that this recession is going to be a long one and a deep one,” Mr. Barbera said. “The toughest six months,” he added, “will be the just-completed fourth quarter and the first quarter of this year.”
Employers in every industry cut payrolls.Some economists predict that the recession will last till july to the least, which will be the longest recession since 1930's. In general most economists say it will last upto 6 month and things might worsen in the following months. No proper solution has been given by anyone including President Obama.
LINK: http://www.nytimes.com/2009/01/10/business/economy/10jobs.html
No comments:
Post a Comment