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
A Detroit woman holds an Employment Guide at a job fair.   (AP Photo/Paul Sancya)
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(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."