Philadelphia, Pennsylvania (WiredPRNews.com) — The last time unemployment rates were this low, it was 22 years ago. This May, the unemployment rate jumped to 5.5%. This increase is the highest monthly since the mid 1980’s with over 49,000 employers slimming down their roster and sending workers and their families into a panic.
According to the Associated Press, “The latest snapshot of business conditions showed a deeply troubled economy, with dwindling job opportunities in a time of continuing hardship in the housing, credit and financial sectors.” A report from the Labor Department indicates that employers fear for the job market and how the economy will effect business causing them to cease new hiring and let go of as much labor cost as possible.
The April 2008 unemployment rate sat at 5%, but when May got here, the rise to 5.5% was the most significant single month jump since February 1986. The jump also left the jobless rate at its highest since October 2004. With the stock market weakening at a drastic pace and the Dow Jones tumbling steadily towards frightening lows, trading has become critical as well.
Unemployment rate declines came as a surprise to economists who forecasted a minimal .1% increase. Although payroll losses weren’t as drastic as analysts as anticipated, job losses between March and April resulted in a larger loss than even the government has expected. According to the report, employers have cut payrolls for five straight months. Due to this, the White House is none too pleased.
White House deputy press secretary Scott Stanzel expressed the general feeling of disappointment. “Certainly this isn’t a report that we wanted to see today. It is a number that is too high in our view but it is lower than the average of the last three decades.”
With inflation becoming a bigger problem by the day, gas prices rising by cents per hour and the cost of living rising steadily, it is safe to assume that U.S. employers are apprehensive about resuming with new hiring until they feel more sure that an economic recovery has a stronger outlook.
Wired Business Reporter –
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