Unemployment Hits 10.2%

The Associated Press reported November 6 that the U.S. unemployment rate had topped 10 percent and was likely to go even higher. This is the first time that the jobless rate has exceeded 10 percent since 1983, when Ronald Reagan was President.

The story says, "Nearly 16 million people can't find jobs even though the worst recession since the Great Depression has apparently ended. The Labor Department said Friday that the economy shed a net total of 190,000 jobs in October, less than the downwardly revised 219,000 lost in September. August job losses were also revised lower, to 154,000 from 201,000."

So the bleeding continues, it's just not as bad as it has been. Unemployment tends to be a lagging indicator in a recovery, but this has got to be politically difficult for President Obama and Democrats. The continued rise in unemployment raises serious questions about the effect of the stimulus package and overall sentiment concerning the ability of Democrats to manage the economy.

The AP continues: "Counting those who have settled for part-time jobs or stopped looking for work, the unemployment rate would be 17.5 percent, the highest on records dating from 1994. The jobless rate rose to 10.2 percent from 9.8 percent in September. The jump reflects a sharp increase in the tally of unemployed Americans, which rose to 15.7 million from 15.1 million. That was much larger than the net loss of jobs, which is based on a survey of businesses. Economists say it could climb as high as 10.5 percent next year because employers remain reluctant to hire."

Another interesting statistic: nearly 36 percent of those unemployed have been without a job for six months or longer. That number is particularly painful. Jobs were lost last month in the manufacturing industry (61,000 jobs), the construction industry (62,000 jobs), the retail, financial, and leisure and hospitality industries. Professional and business services companies added jobs during the reporting period. The number of temporary jobs also increased last month.

The chief economist at Mesirow Financial, Diane Swonk, is cited as saying that small businesses, who are key to job creation, are still facing credit issues and don't have the cash to bring on new workers.

http://finance.yahoo.com/news/Jobless-rate-tops-10-pct-for-apf-563122944.html?x=0&.v=8