U. S. Unemployment Hits 7 Month High

[exiges]

http://www.bbc.co.uk/news/business-11913196

he US unemployment rate rose to 9.8% in November, the highest rate since April, the US Labor Department has said, raising fears about the strength of the country's economic recovery.

Just 39,000 jobs were created last month, below analysts' expectations. In October, 172,000 jobs were created.

European stocks markets fell sharply after the figures were published.

Analysts are concerned that the levels of high unemployment in the US are undermining the economy's recovery.

The UK's FTSE 100, France' Cac 40 and Germany's Dax share indexes all moved sharply into negative territory when the unemployment data were released.

The jobs number is a first estimate, and could be revised in the coming months.

'Very disappointing'

The Labor Department said 15.1 million people were now unemployed in the US, equating to a rate of 9.8%. This is an increase from the 9.6% rate recorded in the previous three months.

Jobs were created in the business services, healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell.

Analysts were distinctly underwhelmed by the jobs figures.

"Obviously it's a surprise - it's very disappointing," said Bernard Baumohl at the Economic Outlook Group.

"Clearly this is not what was expected. We were looking for something much, much higher."

However, he said the number of new jobs would probably be revised "substantially up" next month, in line with recent job figures.

Stimulus measures

At the beginning of last month, the US Federal Reserve, spurred by weak economic growth, announced a stimulus programme to pump $600bn (£382bn) into the economy.

High unemployment and a weak housing market in particular are hampering growth, analysts say.

This is the second major stimulus package the Fed has introduced to try to kick-start the recovery, having pumped $1.75tn into the economy during the downturn.

[AvidFan]

Published today:

You can see the uptick on the official U3 trace. Look at the real unemployment figure - on its way to 25%?

Edited December 3, 2010 by AvidFan

[interestrateripoff]

Perhaps for the next couple of months not enough people will be dropping off the official stats in the US to create the illusion of lower unemployment?

[Panda]

You still think QE printing money hah, is finding its way into job creation, wages, business startups, creating a way to earn a wage to then get into to debt to promote growth?

QE, money shuffling, give everyone $5000.00 by way of a personal/business tax back cheque, that will get things really moving, real money printing.................

Helecopter Ben, more like Mr Shuffle

Edited December 3, 2010 by Panda

[Panda]

Time to either..........

1) Tax imports both from non-US and US companies overseas, will they,..............2) hell, will hit dividends/earnings.............

3) Encourage overseas based US companies to come home through tax breaks, creating jobs,.................see2)

[exiges]

You still think QE printing money hah, is finding its way into job creation

Perhaps they're working on the principle that QE devalues the dollar, which makes exports cheaper for overseas customers to make orders come flooding in.

It's a race to the bottom as everyone else does it.

[headrow]

This news should bring some long lost cheer to this board. No doubt it sent the price of gold rocketing to the moon.

[northwestsmith2]

Since WWII there have never been so many of the unemployed staying unemployed for so long.

Data extracted on: December 3, 2010 (1:08:12 PM)

Labor Force Statistics from the Current Population Survey

Series Id: LNS13025703

Seasonally AdjustedSeries title: (Seas) Of Total Unemployed, Percent Unemployed 27 Weeks & over

Labor force status: Unemployed

Type of data: Percent or rate

Age: 16 years and over

Duration : unemployed/laid off: 27 weeks and over

Percent/rates: Percent of unemployed within group

http://www.bls.gov/webapps/legacy/cpsatab12.htm

In addition those that give up looking for work in the last two weeks or think there are no jobs, are no longer counted as unemployed

Edited December 3, 2010 by northwestsmith2

[Realistbear]

Oversupply and excess capacity characterises the West.

We are due a bout of deflation.

That said, everything is honk dory in the UK where no jobs have been lost (we have only 10% out of work--the lowest in the G8-10), house prices remain high, manufacturing is up, the FTSE is soaring and Sterling is rock solid.

What more could we want?

[wonderpup]

You still think QE printing money hah, is finding its way into job creation, wages, business startups, creating a way to earn a wage to then get into to debt to promote growth?

Certainly it is- in China.

[Saberu]

With official figures at 10% the real unemployment rate must be huge, maybe 15-20%.

Edit: Seems I wasn't far off with SGS at close to 25%!

http://www.shadowstats.com/alternate_data/unemployment-charts

Edited December 4, 2010 by Saberu