The Daily OrangeAsk the Experts | What does the increasing unemployment rate mean?
By Siena Martin
Posted: 11/12/09, 1:52 AM EST Section: News
The U.S. unemployment rate rose to 10.2 percent in October, a 26-year high, according to statistics from the U.S. Bureau of Labor's Web site.
Since the Great Depression ended, the highest the unemployment rate rose to was 10.8 percent in 1982, according to The New York Times.
Employers cut 190,000 jobs in October. Markets expected considerably fewer jobs to be lost, but October didn't top the 219,000 jobs lost in September, according to The Washington Post.
Financial experts had begun to predict that the worst was over and that the market was on an upswing. But the latest numbers show that the small recovery has not translated into any new jobs, The New York Times reported.
The 9.8 unemployment rate in September had already prompted some financial experts and critics to question how well President Barack Obama had spent his $787 billion stimulus package, according to The New York Times.
U.S. Labor Secretary Hilda Solis said she believes the stimulus has been well spent and the unemployment rate is not as bad as it seems.
"I don't think it's a matter of things going wrong," she said in a conference call with The New York Times. "We're making a tremendous turning point here."
Democrats and labor unions have clamored for more spending in job-growth areas. Richard Trumka, president of the largest labor union in the United States, said the government needs to finance construction projects in order to get people working. Without these projects, the country will continue to suffer, he said.
"It will probably be 2012 before there starts to be real job creation," Trumka told The New York Times.
The Daily Orange asked Syracuse University experts, "What does the increasing unemployment rate mean?"
Meet the expert: Don Dutkowsky, economics professor
"It's a sign of a pretty significant economic slowdown, despite the fact that we have seen that the recession is over, we are a long way from full recovery. Although we have stopped the freefall, we haven't gone back up. It would be nice to see a second stimulus package. The first one was able to help stop the freefall, now we must make ourselves come back up."
Since the Great Depression ended, the highest the unemployment rate rose to was 10.8 percent in 1982, according to The New York Times.
Employers cut 190,000 jobs in October. Markets expected considerably fewer jobs to be lost, but October didn't top the 219,000 jobs lost in September, according to The Washington Post.
Financial experts had begun to predict that the worst was over and that the market was on an upswing. But the latest numbers show that the small recovery has not translated into any new jobs, The New York Times reported.
The 9.8 unemployment rate in September had already prompted some financial experts and critics to question how well President Barack Obama had spent his $787 billion stimulus package, according to The New York Times.
U.S. Labor Secretary Hilda Solis said she believes the stimulus has been well spent and the unemployment rate is not as bad as it seems.
"I don't think it's a matter of things going wrong," she said in a conference call with The New York Times. "We're making a tremendous turning point here."
Democrats and labor unions have clamored for more spending in job-growth areas. Richard Trumka, president of the largest labor union in the United States, said the government needs to finance construction projects in order to get people working. Without these projects, the country will continue to suffer, he said.
"It will probably be 2012 before there starts to be real job creation," Trumka told The New York Times.
The Daily Orange asked Syracuse University experts, "What does the increasing unemployment rate mean?"
Meet the expert: Don Dutkowsky, economics professor
"It's a sign of a pretty significant economic slowdown, despite the fact that we have seen that the recession is over, we are a long way from full recovery. Although we have stopped the freefall, we haven't gone back up. It would be nice to see a second stimulus package. The first one was able to help stop the freefall, now we must make ourselves come back up."
Viewing Comments 1 - 1 of 1
George Dinmore
posted 12/15/09 @ 6:02 AM EST
Firstly, great article.
But, the thing is, i have been reading this morning that the unemployment tax is being increased....?
Why?
Am i the only person that thinks that this is stupid?
How is this world going to recover from the downturn if everyone in power is increasing taxes. (Continued…)
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