Unemployment Hits 9.5%, No Sign that Stimulus is Helping

[Matt Molnar]

Payrolls Fall More Than Forecast, Unemployment Rises (Update4)

By Shobhana Chandra

July 2 (Bloomberg) -- Employers in the U.S. cut 467,000 jobs in June, the unemployment rate rose and hourly earnings stagnated, offering little evidence the Obama administration’s stimulus package is shoring up the labor market.

The payroll decline was more than forecast and followed a 322,000 drop in May, according to Labor Department figures released today in Washington. The jobless rate jumped to 9.5 percent, the highest since August 1983, from 9.4 percent.

[T-Bird76]

Take into account the stats the Clinton Administration removed back in 91 to look at the unemployment rate it spells a far more interesting picture.

[Jetinder]

In the UK "official" unemployment figures have hit around 2.6 million, unofficial figures (where people are out of work but are not allowed to claime or sign on for unemployment benefit) is close to 3 1/2 million.

But when you go in to town shopping or go to the City of London or Canary Wharf you never see any signs of this recession or the very high unemployment.

Nothing the UK government does has worked to fix the problem.

Due to firms in America feeling the recession their offices in the UK either have head count freezes or are sacking staff.

Its a very very depressing picture.

At least you guys have got Obama as beacon of hope to get you out this mess, we have Gordon Brown ..........

[Matt Molnar]

At least you guys have got Obama as beacon of hope to get you out this mess...

That beacon is fading very quickly.

[Jetinder]

At least you guys have got Obama as beacon of hope to get you out this mess...

That beacon is fading very quickly.

LOL, fancy a swap we have a Obama as our leader and your have our leader Gordon Brown or even better make the UK America's 51st state (as we speak the same language and watch the same tv shows).

Gordon Brown bails out the banks and stops the yuppies from loosing their over paid jobs, but dispite the recession he still pays yuppies in the 2 nationalised banks £1 million bonuses but allows the same banks to sack normal people like you and me.

Thats old Gordon for ya, where as Obama's cracked down on the American yuppies salaries and brought the "wild yuppies" in to line. He is trying to fix the banking system and car industry.

Here in the UK Gordon Brown is to chicken to the same things as Obama.

[T-Bird76]

Obama today said he expects unemployment to rise even more...this is after he said unemployment would not exceed 10% when he announced the Stimulus program. The fact is most state Gov'ts are using the money to keep their State Gov'ts from shutting down and not using the money how it was intended to be used.

The Stimulus program was designed to substitute the lack of consumer spending which is the driving force behind the economy with Gov't spending. Its not working and the economy continues to fall even further into recession. The question of how to get Americans out of debt has not been addressed. Default rates on credit cards, loans, mortgages, utilities and the like are increasing every month. How can someone spend or even borrow when they have a mountain of debt? Even people who are good risks can't afford to spend or borrow because of the impossible credit market.

A good micro economic indictor of the rest of the year and early 2010 are the airlines, they continue to cut capacity on very weak bookings. Fall bookings so far have been very poor and was the single reason WN had that fare sale last week. Fall and winter schedules will be finalized in the next week or two...look to see even more drawn down of capacity by the airlines. Last Christmas was a blood bath when it came to consumer spending...this Christmas will be the final butchering.

[PhilDernerJr]

Promote consumer spending by leaving consumers in debt and giving corporations the money so that they don't need to remain as competitive.....genius. :roll: