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Unemployment rate highest in 26 years

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Just when we thought it couldn’t get any worse, it did. As the recession continues, more of us are becoming aware of how serious it is.

Thursday’s report from the Labor Department suggests that, although America may be coming out of a recession, many companies will still be laying off employees. This month, thousands of people will be losing jobs due to the economy, and they aren’t alone.

June welcomed the highest unemployment rate in 26 years, a whopping 9.5 percent. According to the Associated Press, 467,000 jobs were cut last month alone. The worst of it all is that economists expect the rate to reach at least 10 percent this year.

The job losses weren’t concentrated, as you might expect. The AP reported that almost all industries slashed jobs. Surprisingly, there are two industries that actually added positions: health care and education.

For those who have been lucky enough to keep their jobs, you can bet that their pay decreased as well. May’s average weekly earnings were $613.34, but have slumped to $611.49 in June.

So, what can we expect to see in the future for our nation’s economy?

Economists predict that the end of this recession is close at hand. Many are predicting the economy will begin to grow by August and we’ll be headed in the right direction once again. We’re not going to see a change immediately, as something this severe will take years to recover from. Economists are predicting that by 2013 we should see the unemployment rate back to normal at 5 percent.

Regardless of predictions, the present situation remains. Being laid off doesn’t have to be the end of the world. Our nation was built on innovation and new beginnings. That might be exactly what it needs now.

andrea @ July 3, 2009

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