By Stephen Pate, NJN Network, Charlottetown, PEI January 26, 2009, 12:20 PM EST
CNN is reporting US unemployment hit 7.2% and job losses of 524,000 in December. Despite upbeat earnings for the 4th quarter, companies are taking a negative view of 2009 and job cuts in the 10’s of thousands are being announced daily. Home Depot just announced 7,000 layoffs and the bad employment news goes on.
The last time the US unemployment rate was 7% was June 1993 and it had been above 7% since October 1991, for 20 months. Economists employed in business predict more unemployment to follow for the next 6 months. (The US Unemployment Rate January 1948 to December 2008) President Obama urged Congress and the Senate to pass his stimulus bill quickly. Canadian Prime Minister Stephen Harper will bring in his stimulus budget tomorrow at 4PM EST.
The worst unemployment rate in US recent history was 10.8% in November and December of 1982. The rate had climbed above 7% in May 1980 and didn’t go below 7% until November 1986, a record 5.5 years. The cause was said to be inflation based on oil prices, inflation and a transition from rust belt manufacturing.
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