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Expect Unemployment to Keep Rising

Companies still aren't sold on a long-term recovery

By John Johnson,  Newser Staff

Posted Nov 6, 2009 11:33 AM CST

(Newser) – Anyone hoping that today's worse-than-expected news of 10.2% unemployment means we've hit rock bottom is going to be disappointed, writes Megan McArdle. "This figure is likely to get worse before it gets better." Companies need more proof of a long-term recovery before committing to new hires. In the meantime, they're more likely to give existing employees more assignments and hours than to hire new workers.

"To me, unemployment is a far more important indicator than GDP," McArdle blogs for the Atlantic. "Given how rich America is, the misery from losing a job far outweighs a few percentage points of variation in incomes." Upcoming stats may declare the recession over, "but the mental recession will be going on for quite some time." Think 2010 is going to be about health care? Think again. "It's going to be about the jobs number."

A Detroit woman holds an Employment Guide at a job fair.
A Detroit woman holds an Employment Guide at a job fair.   (AP Photo/Paul Sancya)
Job seekers hand in resumes at a job fair in Livonia, Mich., earlier this month.
Job seekers hand in resumes at a job fair in Livonia, Mich., earlier this month.   (AP Photo/Paul Sancya)
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COMMENTS
Showing 3 of 20 comments
FreeThemAll
Nov 7, 2009 10:39 AM CST
Hey jelly belly: You don't think government spending stimulates in such a way as to overcome economic downturns? What do you think pulled the economy out of the Great Depression? It was the massive government spending to finance the prosecution of WWII. Though this resulted in inflation and rationing since war materials instead of consumer goods and services were being produced, it ultimately lead to decades of economic growth.
ronimaca
Nov 7, 2009 6:36 AM CST
antiks... and then these bastards wrap themselves in the bible like it is a cloak hiding the fact the only thing they believe in and love is the almighty dollar. They spit on the Constitution and the Bill of Rights and pretend they are the real true American. Well it does say "We the people... for the people " it doesn't say "...for the chosen people" (10% of us is not a majority)
FreeThemAll
Nov 7, 2009 4:57 AM CST
Right on, Antiks!

 
recession • unemployment • economy • recession depression • jobless • unemployment rate

 
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