WORLD> America
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WORLD> America
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US jobless rate hits 9.8%, highest since 1983
(Agencies)
Updated: 2009-10-02 22:19
The economy has received a boost from the Cash for Clunkers auto rebate program and other government stimulus efforts, but many economists believe that growth will slow in the current quarter and early next year as the impact of those programs fade. Federal Reserve Chairman Ben Bernanke said Thursday that even if the economy were to grow at a 3 percent pace in the coming quarters, it would not be enough to quickly drive down the unemployment rate. Bernanke said the rate is likely to remain above 9 percent through the end of 2010. Hourly earnings rose by a penny last month, while weekly wages fell $1.54 to $616.11, according to the government data.
The uncertainty that surrounds the recovery has made employers reluctant to hire. The Business Roundtable, a group of chief executives from large corporations, said earlier this week that only 13 percent of its members expect to increase hiring over the next six months. While job losses have slowed since the first quarter of this year when they averaged 691,000 a month, the cuts actually worsened last month in many sectors compared with August. Construction jobs fell by 64,000, more than the 60,000 eliminated in August. And service sector companies cut 147,000 jobs, more than double the 69,000 in the previous month. Retailers lost 38,500 jobs, compared to less than 9,000 in August. Temporary help agencies eliminated 1,700 jobs, down from the previous month, but still a sign of labor market weakness. Economists see temporary jobs as a leading indicator, as employers are likely to hire temp workers before permanent ones.
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