The US Economy: Jobless Rate at 9.7%

Surprise Rise in US Jobless Raises Spectre of Great Depression
TIMES ONLINE: Fears that the world is sliding into the worst global recession since the Great Depression multiplied yesterday as figures showed the steepest jump in American unemployment since the Second World War and a slump in manufacturing across Europe.

Economists on both sides of the Atlantic were startled by the severity of the latest indications of global economic slump, which further stoked pressure for radical action to stave off economic calamity.

A further surge in US joblessness led the litany of bleak developments yesterday. Official figures confirmed that more Americans lost their jobs last year than in any year since 1945, and that unemployment is soaring at the fastest pace seen since then.

A total of 524,000 Americans were made redundant by US employers last month alone, the latest official payroll figures showed. The mounting toll of job losses drove the unemployment rate in the world's largest economy up to a 15-year peak of 7.2 per cent, sharply higher than November's 6.8 per cent, amid predictions that it will leap to 9.5 per cent or more by the second half of next year.

“The jobs situation is ugly and it is going to get uglier,” Richard Yamarone, chief economist at Argus Research in New York, said. “There's no reason to expect hiring any time in the next three to six months. We're not going to get any hiring until the Government steps in and acts. Talk doesn't work.” >>> Gary Duncan, Economics Editor | Saturday, January 10, 2009

WELT ONLINE: Experten erwarten längsten Abschwung seit 1945

Die Rezession schlägt in den USA dramatisch auf den Arbeitsmarkt durch: Allein im Dezember gingen 524.000 Jobs verloren. Die Rezession in Amerika wird nach Ansicht von Experten länger dauern als alle anderen seit 1945. Frühestens im kommenden Jahr wird sich die US-Wirtschaft wieder erholen.

Die Rezession in den USA wird Experten zufolge voraussichtlich länger dauern als alle anderen seit dem Zweiten Weltkrieg. Zwar werde es wohl noch in diesem Jahr zu einer leichten Erholung der Wirtschaft kommen, normalere Wachstumsraten seien jedoch erst wieder für 2010 zu erwarten, erklärten die Experten des Blue-Chip-Barometers. Die Mehrheit der Befragten aus führenden Unternehmen und Forschung glaubt demnach, dass die Rezession offiziell im dritten Quartal 2009 enden wird. Die Arbeitslosigkeit wird nach Ansicht der Hälfte der Umfrageteilnehmer jedoch erst 2010 ihren Höhepunkt erreichen. >>> Reuters/dpa/ras | Samstag, 10. Januar 2009

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Wall Street Open: Share Rout Continues as Jobless Figures Disappoint
THE GUARDIAN: Stock markets fell sharply in London and around the world today after further evidence of weakness in the US jobs market revived worries about the health of the global economy.

Jobs data released this afternoon showed that unemployment in the US soared to its highest level in nearly five years in August, as the credit crunch continues to takes it toll on the country's already fragile economy.

The US Labour Department said that employment in the US outside the agricultural sector fell 84,000 in August, exceeding economists' expectations of a 75,000 drop.

There was also an unexpected increase in the country's unemployment rate last month, to 6.1% - the highest since December 2003. Analysts has expected it to remain steady at 5.7%.

The US non-farm payroll figures for July were revised up to 60,000 and June's to 100,000 from a previously reported 51,000 in each month. Employers cut payrolls for the eighth consecutive month and also reduced hiring in a bid to save money. Wall Street Open: Share Rout Continues as Jobless Figures Disappoint >>> By Julia Kollewe and Kathryn Hopkins | September 5, 2008

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US Stock Markets Dive for Fourth Day on Sales and Job Fears
THE TELEGRAPH: The US entered bear territory yesterday as investors took fright at a combination of weak domestic retail sales, a declining labour market and fears that faltering global growth will impact on the profits of some of America's largest multi-national companies. 



The Dow Jones Industrial Average lost almost 345 points, or 3pc, while the broader S&P 500 index also fell 3pc in its longest stretch of losses since January, as traders and hedge fund managers continued to sell shares in major companies. 



The Dow was dragged down by heavy falls in financial companies' shares, including Bank of America, American International Group and Citigroup. Other companies to be hit included Boeing, down 4.6pc, and Caterpillar, down 5.6pc.



Nasdaq, the technology-focused stock market, was also badly hit, falling 3pc, on fears that global technology providers like Cisco, which fell 4.4pc, could be hit by an international slowdown. All three indexes were in bear territory – defined as a 20pc drop from a recent peak.

Fresh economic data added to the gloom, with government numbers showing an unexpected jump in the number of people filing for unemployment benefits, while a report by ADP Employer Services showed private employers cut 33,000 jobs last month. US Stock Markets Dive for Fourth Day on Sales and Job Fears >>> By James Quinn, Wall Street Correspondent | September 4, 2008

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Oil Price Pushed to New Records as US Economy Plunges Further
THE TELEGRAPH: Dow crashes 400 points as US jobless rate climbs and prospects of war in Middle East grow, sparking worries of 1970s-style crisis

Fears the world economy is in the grip of a 1970s-style oil crisis sparked an almost 400-point plunge in leading US shares, the biggest one-day loss in 16 months.

The price of crude oil was catapulted $11.31 to a new all-time high of $139.12 in New York, its biggest one day gain in dollar terms on record, driven by an almost unprecedented rise in US unemployment and signs that Israel is preparing for outright conflict with Iran and on the Gaza Strip. 



The spike caused shares in the Dow Jones Industrials index to fall as much as 410 points at one stage, closing down 394.64 points at 12,209.81 – its worst loss since February 2007. In London the FTSE 100 closed down 88.5 at 5906.8.

On a dramatic day for equities and commodities, the New York Mercantile Exchange doubled daily price limits after heating oil contracts broke through original limits, leading to a short suspension of trading in some contracts.

The oil price has now risen more than $15 in the past two days alone, having doubled in the last year, undermining predictions the commodities peak could be ending.

Other commodities, including copper, aluminium and agricultural products, also rose sharply.

"This is just a plain old stampede," said Citigroup energy analyst Tim Evans.

"The sellers have basically pulled their orders so it doesn't take much incremental buying to push prices higher."

Kevin Norrish, a commodities analyst with Barclays Capital, said the oil spike represented Iran "coming back on to the radar screen."

"It's a rather nasty reminder that it hasn't gone away," he added.

A prominent Israeli cabinet minister, Shaul Mofaz, said that an Israeli attack on Iranian nuclear sites now looked "inevitable." Oil Price Pushed to New Records as US Economy Plunges Further >>> By Edmund Conway and James Quinn in New York | June 6, 2008

NEW YORK TIMES:
Job Losses and Surge in Oil Spread Gloom on Economy >>> By Peter S Goodman | June 7, 2008

FINANCIAL TIMES:
Oil Surges to Biggest Single-Day Advance >>> | June 7, 2008

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