Jobless Rate Hits 8.9%

"U.S. Jobless Rate Hits 8.9%, but Pace of Losses Eases"
by Peter S. Goodman and Jack Healy

As anyone knows there are a lot of business that are having to close down or are having to lay people off because they just are not making any money. In April alone, there was about 539,000 jobs that were lost which means that about 8.9% people are not jobless in the US alone. This report was posted on May 9, 2009. That is a lot of people who lost their jobs in one month. The jobs lost is due to the economy and the recession that the US is in.

Some say that to recover from this recession that we are in could take anywhere from a month to even years, and there are some that say it could last for a ever long time. But the one thing that was very hopefully in the jobs lost this month is that the number were not as high as they thought that they would be. Analysis believed that the numbers were going to be a lot higher than what they were which to some means that the economy just maybe taking a turn for the best.


As the Labor Department says is that the nation's problems, the economy falling last fall looks like it is final coming to a stop, or as the said "had been arrested" because the reports were just that good.

The economy began to fall in the fall when one of the larges investment bank, Lehman Brothers, collapsed, that is when a lot of other businesses start to fall as well. In another words, once Lehman Brothers fall, the whole economy went with it. The recession that we are in now is told to be the worst since the Great Depression because there is should a high demand for goods but there really is no service or it is weak right now.


The April numbers look good but if you were to look at the numbers for February, the numbers were at 681,000 that is after they looked at the numbers because what was first reported was that there was 651,000 jobs lost and March also had to be revised because there was an report that 663,000 people lost their jobs but the number was really higher that at almost 700,000. The numbers for March were actually 699,000. That is a all time high because that means there will be more people filling for unemployment just to be able to live and pay their bills.


Part of the reason that April's number were so high is because the government started hiring a lot more people just for the preparation of the 2010 Census.


Even though there are some place that are hiring, experts believe that it could take many months or years just to get back to where we were before the fall of the economics. The experts also think that many businesses will be cutting about another 2 million jobs before the economy can even start to grow again and sit itself back to the normal scale that we once known the economy to be. The unemployment rate is believed to last until sometime in 2010 because of the fact that there are still a lot of places that are closing or trying to break even.


With the economy breaking down, millions of people are being forces to live with what they got meaning what money the bring home from their paychecks and not what they want to live like by borrowing money from their credit cards or from their home.


In December of 2007, there was more that 5.7 million jobs that disappeared from the US economy and most were sent over seas to other countries because they are willing to pay less over seas unlike in the US were the pay is higher.


When the economy started to fall, so did any pay raises. With there not being an increase in wages and people having to live with what they got, employees from factors, the malls, and even the stores are seeing a decrease in shoppers which means there are jobs lost because they too are not making an money and having people that are doing nothing is just a waste of money for a job that is not being done.

When President Obama took office, one of the things that he did was a package of about $787 billion dollars to help of the state and local government. But the money was a federal aid to help them out. Other things that the money was sent out to help out is tax cuts for those who are the worst off from the economy crash.


"The Federal Reserve and the Treasury have been pouring money into mortgage markets and other areas of finance, bringing down the costs of borrowing." What does that mean? That just means that they are trying to help everyone out. They are trying to slow down the borrowing rate and trying to help out those that are trying to borrow money. There are a lot of people that are borrowing money or are trying to mortgage their house just to get money to be able to live in their homes, pay bills, and make ends eat.


"The question is whether fresh job losses combined with continued declines in real estate prices will prompt millions more Americans to fall behind on their mortgage payments, leaving banks counting fresh losses and prompting them to pull back anew on lending." How many people will it be before they see that the mortgage is too high for someone to pay their rent but also that when someone losses their job, they don't have money to pay their mortgage so having some type of away out of this problem. If the banks loss out on their money because people can not pay their mortgage, that is money that they are out of, that is money that they are not getting to pay those that they also borrowed money from to be about to help those that have the mortgage. If anyone knows, when you get a mortgage loan, the bank borrows money to give you the loan which means that they are taking out a loan as will. So if they are not getting their money then they can not pay their loan back. In another words, when the banks can not get their money, there is a bigger problem because the banks lose out on their money which could mean that the economy could fall further and further down the line.

With all the job losses, the ones that are being hurt pretty hard are the manufacturing job with 149,000 jobs lose, the professional and business services are at 122,000 jobs lose, and the construction with 110,000 jobs gone. By race, African Americans were 15% o of jobs lost, teenagers were 21.5%, and the last was adult man with 9.4% jobs lost.


The one thing that the article does state is that these information is only for those that work full time and not those that were part time either because they had to have their hours cut short or because they could not land a full time job and all that they could get was a part time job. If they were to count the part time hobs then the rate would go up to about 15.8% but since they are working and getting paid, they are not part of those that are unemployed. If they were to take into count those that were part in March and those that did not have a job then the rate would be about 15.6.


Since the government started to track the unemployment in 1948, there have been many with out jobs. From their calculations, those that have not been working for about six months or more, the percent was at about 27.1% which from their records is the highest as of to date. That is really high for those that can not get a job because of the economy but where was the rate at last year before the economy failed like it did? That figure was not put in to the report that was done at the time of this article.


Some Economists say that even if businesses were to be hiring there still would be a major problem with the economy because of how many people right now do not have jobs. There is not a lot of businesses that can hire a lot of people even if the economy were to get better.


Since the Labor Department has been keeping track of the unemployment rate, we have been able to see how our economy shows what the job market is like. When you see that the economy is starting to go down, then you will start to see that there are a lot of jobs that are lost and you start to see prices going up. There are even times when you will have some companies that will give out pay cuts or cut hours down just so that they can keep their workers and they don't have to fire them and pay more to the unemployment for those that seek the government's help. Even with the government getting help for the Federal government, the government is still having a hard time with money and giving out the money to those that need the help.


With Obama even giving money out to the states and government, it still is not enough to cover for those that need help. It is not even help for companies that are going under and need help. With the banks slowly closing or trying to found money, any help that they can get, it still is not enough to help them out because there still is not enough money for those that need help paying their mortgage.


In all, even though the article is taking about the economy that crashed in the fall of 2007, showing what the economy looked like before everything started to fall apart. What were they like a year as of Friday?