President Barack Obama made a promised earlier this year that unemployment would not go above 8.8 after the $787 billion stimulus package remember. Well for nearly every month except of August unemployment went up,up and away.
On Monday, the president tempered his remarks by warning the American people the unemployment will be 10%. The president was right kind of . Today, the Department of Labor released the latest non-farm payroll and the number is 10.2% for the month of October. This come on the heels of last week survey that found consumer confidence took a dive meaning the public is not buying goods and services and worried for their jobs.
So now as people getting ready for the holiday season; they were delt a one-two punch the consumer is frightened to shop or to look for a holiday job.
And retail employers are skittish about hiring temporary and stocking less and less.
Today, President Obama said it “a sobering number that underscores the economic challenges that lie ahead.” Later the president signed a series of bills that extended unemployment and extend the homebuyer tax credit to include people who have owned homes previously. The legislation also allows homeowners who are underwater on their loans and about to be foreclosed on to give mortgage to the government via bank or mortgage company; and person will rent the home from Uncle Sam.
If that not enough some economist worry that the unemployment number will climb to if not over 11%. Mark Zandi of Economy.com and Joshua Shapiro US economist with MFR, Inc say they were surprised that Unemployment reached 10% quickly and revised their outlook that unemployment will peak at 11 by mid-2010. Earlier this year the suggested the unemployment rate would reach 10.5% by mid-2010.
“It’s not a good report,” said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co. “What we’re seeing is a validation of the idea that a jobless recovery is perfectly on track.”
Today’s numbers is the highest in 26 years.
There are some rays of hope. Temporary work is for the third month in row. Education and Health care industries also grew.