Unemployment and Career News August 4th, 2010
This August started with a downer for job seekers when on August 1, a panel of 57 economists, inquired by Bloomberg News, estimated that unemployment has risen from 9.5 percent in June to 9.6 percent in last month. This is in sharp contrast to the high that was created by President Obama signing the bill for emergency extension of Unemployment Benefit in the last week of July.
It is predicted that the cut in the number of Census workers at the last phase of the population count resulted in the loss of 600,000 payrolls. According to the Census Bureau, 144,000 workers have already been made redundant with a possibility of 200,000 additional cuts in the near future as population count winds down, which in turn will further skew the payroll figure for coming months.
Economists predicted before the official government report due on August 6, that this will cause a significant drop in consumer expenditure for the coming months of this year. Last month proved to be a slower one for both manufacturing and service industry, as a result in the beginning of the second part of July the economic recovery deteriorated. According to Ben S. Bernanke, the Federal Reserve Chairperson, joblessness is the “the most important” problem that economy is confronting.
The silver lining is, economists are saying that private market, which shows an employment increase of 90,000 in July, will be a much better estimator for unemployment in 2010 and for seven straight months factory payroll registered a steady increase. Also, the service industry is expected to show a steady expansion during month of July, in August 4 report of Institute for Supply Management, though the rate is expected to be a bit slower than that of June.
It is predicted by economists that the current unemployment situation would continue the ongoing trend of consumers saving more and spending less for the rest of this year.
Some related and helpful links:
http://www.bloomberg.com/news/2010-08-01/unemployment-rate-in-u-s-probably-rose-raising-risk-of-slower-spending.html
Geithner: U.S. unemployment could rise
Unemployment Probably Rose
Economic Rebound Slows
When are the Unemployment Checks be Sent Out?