Unemployment Rate Edges Closer to 10%

New jobless numbers show that the U.S. unemployment rate increased to 9,8 percent in September, the highest it's been in more than a quarter of a century. The Associated Press reports, "...the worst recession since the 1930s is still inflicting widespread pain and underscores one of the biggest threats to the nascent economic recovery: that consumers, worried about job losses and stagnant wages, will restrain spending. Consumer spending accounts for about 70 percent of the nation's economy."

Remember when we were told we had to pass the $787 billion stimulus or unemployment would go above 8%? What happened to that? How could the President and his economic advisers be so far off the mark? Doesn't that make you question other initiatives currently on the table?

The story continues: "Most analysts expect the economy to continue to improve, but at a slow, uneven pace. Government stimulus efforts, such as the Cash for Clunkers auto rebates, likely boosted the economy in the July-September quarter, but economists worry that growth will slow once the impact of such programs fades."

In fact, there was another story out today that said auto sales have plummeted since the Cash for Clunkers program ended.

The AP reports, "The Labor Department said Friday that the economy lost a net total of 263,000 jobs last month, from a downwardly revised 201,000 in August. That's worse than Wall Street economists' expectations of 180,000 job losses, according to a survey by Thomson Reuters. The unemployment rate rose from 9.7 percent in August, matching expectations."

But here's the real kicker: not everyone is being counted. If you add in those individuals who have taken part-time jobs or who have stopped looking for work altogether, the unemployment figure rises to a staggering 17%!

More than 3 million jobs have been lost since President Obama took office, and more than 15 million Americans are now jobless.

"The department said 571,000 of the unemployed dropped out of the work force last month, presumably out of frustration over the lack of jobs. That sent the participation rate, or the percentage of the population either working or looking for work, to a 23-year low. The unemployment rate would have topped 10 percent if the labor force hadn't shrank, Fabbri said."

Unemployment seems to be lasting longer, as well, as the AP notes that those unemployed for six months or more has hit a new high at nearly 5 and a half million, or more than a third of all those unemployed.

And just for shiggles, here's a classic out-of-touch quote from Christina Romer, chairwoman of President Obama's Council of Economic Advisors: "We still think the overall trend is moving in the right direction. We're going from much larger job losses earlier this year. They are moderating. We want them to moderate more."

Moving in the right direction?

"The average hourly work week fell back to a record low of 33 in September. That figure is important because economists are looking for companies to add more hours for current workers before they hire new ones. The uncertainty that surrounds the recovery has made employers reluctant to hire. The Business Roundtable, a group of CEOs from large corporations, said earlier this week that only 13 percent of its members expect to increase hiring over the next six months."

http://finance.yahoo.com/news/Jobless-rate-reaches-98-apf-93159528.html?x=0