Unemployment Spikes Unexpectedly to 10.2%

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.

Yahoo Finance

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One response to “Unemployment Spikes Unexpectedly to 10.2%

  1. The “American Economy,” is no longer small individual enterprises of rugged individualists competing to become bigger than they were!
    To survive and compete in todays global market, you have to lose your individualist identity, and become a part of a large conglomerate, a Global Multi National Corpotation. You have to become a part of a global enterprise that is larger and more powerful than most governments, in order to be a player in the world of “Free Enterprise!”
    You can believe that you are a small businessman opperating a small business and that you and your kind are the foundation that makes America great. You can believe that, and the world will continue to laugh at you. You Libertarians are lost inside the no longer existing past! Wake up and face our present day global reality.
    Every educated person knows, or should know, that everything on the planet is structured to evolve so as to survive inside a changing environment. If anything or anyone does not or cannot make a necessary adjustment to a changing environment, that what exists will no longer be able to exist into the future!
    Capitalism has grown into the stage of “Globalism,” because it is the only way that capitalism can evolve and grow, and not die and not realize it’s full potential.
    Capitalisim cannot move back into the way it was during the early history of America, just like a old man cannot recapture his youth.
    If you allow yourself to view the world scientificaly, you cannot help but come to the conclusion that the only possible alternative to a Free Market Economy is a Controled Market Economy, and the only possible alternative to a “World Controled Market Economy is a “World Planned Market Economy” that is designed to profit the entire planet without discrimination!
    http://despicable.wordpress.com/

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