Unemployment, unfortunately, has reached an all time historic high. 10.2% was a figure many had never expected to see, but the economic reality of the entire issue is that this unemployment dilemma truly does exist. The largest job losses over the month of October and into the month of November were in construction, manufacturing, and retail trade.
“In October, the number of unemployed persons increased by 558,000 to 15.7 million. The unemployment rate rose by 0.4 percentage point to 10.2 percent, the highest rate since April 1983. Since the start of the recession in December 2007, the number of unemployed persons has risen by 8.2 million, and the unemployment rate has grown by 5.3 percentage points” according to the Bureau of Labor Statistics.
This alarming rate of unemployed personell has devastating implications for the U.S. economy. Unemployment has rose due to the lack of demand for retail goods. Retail outfits are reducing work loads and many are closing the door all together. On Jan 16 Circuit City added 34 thousand people to the unemployment number in a matter of 1 announcement. As demand is reduced, profit is as well, and as profit is reduced companies must either slash wages or reduce the number of employed workers if they wish to remain in business.
Unemployment, however, does not only have implications for businesses, but obviously the workers as well. Imagine how someone who may have been the CEO of a large coorporation once, is now struggling to put food on the table for his wife and children. The trend has not only left ecuated people jobless, but people who fill out up to ten applications eeryday in hopes of being called from one.
Americans can only hope that the current economic situation will only get better from here, becuase if were to get worse, who knows what the country will come to.