Three months into the year, the unemployment rate has already soared to 8.5 percent. The official figures showed that it was the highest level in more than a quarter-century, as the recession savaged the labour force.
The non-farm payrolls data presents that about 663,000 jobs disappeared from the American economy last month. Moreover between January and March, more than two million jobs were lost, according to the employment report, released Friday. So in all, the total number of layoffs swelled beyond five million jobs.
The job losses weren’t large and widespread across the services sectors, that is in contrast with the improvement in the manufacturing activity. The government expects and hopes the world economy stabilizes in the second half of the year, before the market recovers. So the government’s purpose to the downturn is being put to a strenuous test. Further president Barack Obama requested the US and the developing countries to spend more as part of a global rebalancing of demand in the years ahead.
Ben Bernanke communicated the purchases of government securities and debt were having beneficial effect, which is positive. We can conclude the decline in full-time jobs is very worse, there is a loss of 1,188,000 jobs but in spite of this there is an increase of 373,000 in people working part-time.
According to me, unemployment is something that is related to the economy. Especially in these hard times companies purpose is: continuing their activity. People haven’t enough time anymore in these outpaced society, and so part-time jobs grow in significance. The government has to recover the economy by supporting the market financially.
Written by Marie Maes
Source: The Financial Times
Article: US unemployment hits 8.5%
Published: April 3, 2009
By Krishna Guha in Washington
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