Dec. 5 announcement by the Bureau of Labor Statistics provided yet more evidence that the economy is losing jobs at the fastest pace in more than three decades. "It's very clear that the U.S. is in a pretty deep recession. There really aren't any safe harbors in this storm, More than 10 million US jobs will be lost in 2009 a staggering number that can shrink US GDP by more than 15%. Economy lost more jobs in 2008 than in any year since the end of World War II as workers got fired in all sectors including homebuilders and automakers to banks and retailers. Companies are cutting jobs to try to preserve profits—or minimize losses—at a time when consumer demand is abruptly drying up and banks are tightening lending standards. An all-out effort by the federal government to provide fiscal and monetary stimulus should get gross domestic product growing again by the second half of 2009, many economists believe. But even after GDP is growing, companies are likely to keep shedding jobs. Wachovia predicts that the unemployment rate will keep rising until mid-2010, topping out around 9%.
People, who are losing their jobs, are never finding equally lucrative jobs again. The unemployment now is replacing the underemployment. But those who are finding new employment are also under-employed. That never happened in the great depression of thirties. What it means is that the US standard of living is diminishing steadily over time as debt replaces wealth, indigenous talents decay and get replaced by borrowed foreign talents.
The jobless rate is expected to climb to 7 percent in December from 6.7 percent the prior month. The American manufacturing base is crumbling. Factories, which make up 12 percent of the economy, shrank in December at the fastest pace in 28 years as new orders for products from cars to furniture reached the lowest level since records began in 1948, the Institute for Supply Management reported last week.
People, who are losing their jobs, are never finding equally lucrative jobs again. The unemployment now is replacing the underemployment. But those who are finding new employment are also under-employed. That never happened in the great depression of thirties. What it means is that the US standard of living is diminishing steadily over time as debt replaces wealth, indigenous talents decay and get replaced by borrowed foreign talents.
The jobless rate is expected to climb to 7 percent in December from 6.7 percent the prior month. The American manufacturing base is crumbling. Factories, which make up 12 percent of the economy, shrank in December at the fastest pace in 28 years as new orders for products from cars to furniture reached the lowest level since records began in 1948, the Institute for Supply Management reported last week.
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