Unemployment Update December 2008: No End in Sight
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Well folks, I hate to tell you, but the unemployment rate did not improve for November. So far this year, we have lost 1.9 million jobs, and some economists are expecting it to climb to 3 million by the spring of 2010. For the week ending December 6th, new jobless claims were higher than expected at 573,000; the highest level since November 1982. The national unemployment rate has risen from 6.5% to 6.7%. November’s nonfarm payroll has dropped another 533, 000. This followed a drop of 320,000 in October and 403,000 in September. Since the beginning of the recession in December of 2007, the unemployment rate has increased by 1.7% and the number of unemployed is 2.7 million. The number of unemployed can be compared to somewhere in between the populations of Chicago and Houston, the third and fourth biggest cities in the United States. According to 2005’s estimated census bureau figures, Houston has 2,208,180 residents and Chicago has 2,836,658 residents.
Although state and local unemployment rates are not due to be released until December 19, 2008, here is some food for thought about our nation’s plight:
- Retail sales were down for the fifth consecutive month in November. November retail sales fell by 1.8% compared to a revised figure of 2.9% in October. October’s sales were the worst monthly sales on record.
- Goldman Sachs projects the unemployment rate will rise to 9% by the fourth quarter of 2009.
- One in ten Americans are receiving food stamp benefits. More than 31.5 million people received federal food stamp benefits in September 2008. This is the highest level recorded. The last record high was in 1994 at 27.4 million. Only Alaska has seen a decline in food stamp beneficiaries between September 2007 and September 2008.
- Personal bankruptcies from June 2007 to June 2008 are up more than 28%.
- Over half of the delinquent borrowers whose mortgage loans were reworked earlier this year are in default again after only six months.
These are the facts, fellow Americans. What do you think? Do you have any suggestions? Please feel free to leave your comments below.
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Welcome to Hubpages, Sobjr1! I wish I knew how to fix the problem, but I am not an economist. However, unemployment insurance claims are rising and one out of ten Americans are recieving food stamp benefits. Both Unemployment Insurance and Food Stamps are part of the manditory spending programs of the US budget. Add the cost of the bailouts and the economic stimulus program to the budget. Conversely, tax revenue is decreasing because of the number of unemployed. Furthermore, the Social Security, Medicare, and Medicaid programs are rising because of the baby boomers. Congress already estimates we are going to have a record deficit. I don't see how the country can keep spending money like water. Do you have any ideas? Obama has a heck of a job waiting for him come January.
sobjr1 says:
12 months ago
So how do we fix the problem? I didn't realize just how many people lost there jobs. Thank you for the information seamist. well done.