The ongoing credit crisis in the U.S is forcing employers to cut jobs leaving a lot of people unemployed and in the lurch. This situation looks to be heading towards one of the biggest recessions in the country in the last quarter century.
There was a big fall in the payrolls which recorded 159,000 in September. This is the biggest fall in the last five years according to the figures released by the Labor Department. Rate of unemployment has risen from 5 percent in April to 6.1 percent now and Jan Hatzius of Goldman Sachs Group says it will still rise at least to 8 percent following hammering of companies and consumers by the acute credit crunch situation in the country.
According to the chief economist of the West Chester based in Pennsylvania Mark Zandi, this recession is going to be a very significant one. As voters blame the ruling party for the condition of the nation, John McCain the Republican presidential candidate faces a tough time even as his campaign enters the final stages.
According to a Yale University, New Haven Connecticut professor Ray Fair, voters tend to blame the White House for everything to do with the economy and the situation of a tremendous rise in the rate of unemployment is definitely a minus point for McCain. This assumption is also furthered by the economy based election forecast developed by a computer model Fair, which shows the Democratic candidate Senator Barack Obama leading against the Republican senator McCain aged 72.