Not long ago, Federal Reserve Chairman Alan Greenspan predicted that unemployment would top 10 percent - it looks like his prediction just came true. According to government report released Friday, Nov. 6, 2009, the unemployment rate has reached 10.2 percent in Oct. 2009, which is the first time this rate has topped 10 percent since April 1983.
Economists say that this rise was actually a sooner-than-expected jump from the 9.8 percent rate in September. Their predictions were closer to 9.9 percent.
The good news (or at least better news) is that layoffs for October dropped off from September. While September saw 219,000 layoffs, October only saw 190,000. However, with economists predicting a much lower 175,000 losses for the month, there's still plenty of evidence that the economy is struggling.
David Wyss, chief economist with Standard and Poor's noted unemployment is still on the rise because while layoffs are decreasing, no employers are hiring. Also, there has been an increase in the number of unemployed teenagers (27.6 percent) and self-employed workers. Some other areas that saw increases in unemployment include:
- Production jobs (14.5 percent from 14.1)
- Construction, maintenance, natural resources industries (15.5 percent from 14.3)
With unemployment rates hitting a higher mark than expected at a faster pace, economists have expressed concern that the economy won't recovery as quickly as once hoped.
At least those who have been affected by layoffs can benefit from the recent extension to unemployment benefits.
