Economy Slumps Job Losses to 60 Year High

I'll tell you, there is not a day that goes back that I one can not read how the job losses continues to decline, each to a new "all time high." In fact, according to the Institute for Supply Management (ISM), which is the single leading indicator marking the end of a recession, "The ISM plunged to 32.9% in December...and is expected to dip back to 34% in February" (WSJ: MarketWatch). What do these numbers mean? it means that our economy is continuing to decline and that the bottom still has plenty of room left.

If that was not bad enough, the Department of Labor is soon to report, for Februray 2009, that the current unemployment rate of 7.6% is expected to rise 7.9%. Now keep in mind that none of these figures reflect contract works, part-time workers and those who have given up looking due to being unable to find work. If you include those numbers, according to Meryl Lynch, the actual unemployment rate is much higher at 13.9% (Financial Week). If you compare that to the "Great Depression" of 1929, which peaked at 25% in 1933 (NY Times), we are more than half way there.

Most economist believe that the economy will continue to get worse, as more are forced to seek temporary or contract work. As a result, we continue to break new records, which were set back near the days of the "Great Depression." While the stimulus package will booost the economy, it is still to early to tell if it will make a significant, long term, difference that can revive our economy.

(Photo Courtesy of: Bureau of Labor Statistics)

Sources:
NY Time: http://www.nytimes.com/2008/10/05/business/05count.html?_r=1
Wall Street Journal: http://www.marketwatch.com/news/story/Worst-job-losses-60-years/story.aspx?guid={3DD6787D-0D70-4B14-94EC-808F4212D419}
Financial Week: http://www.financialweek.com/apps/pbcs.dll/article?AID=/20090206/REG/902069980