Today, the U.S. Labor Department released its January unemployment report. The rate was huge during Great Recession and seems to be higher.
The agency said that it would release job loss update in the year ended in March 2009. Experts forecast that the number of people without job would increase nearly 800,000, meaning that job loss during Great Recession raises up to abut 8 million.
With the new report released by the agency, scope of job crisis will be illustrated. According to economic analysts, about 1 to 2 million jobs will be generated for the economy in this year. However, analysts said that the job market can only be animated as before in at least next three or five years.
Though the U.S. economy is on rising recovery, there are still not much jobs for laborers. In the last quarter of 2009, GDP rate of the United States reached its fastest speed in six years with a 5.7 percent rise. The reason, explained by economists, is that businesses do not dare to hire workers as they are not sure whether the economy continues to recover or not once government stimulus measures, such as tax credits for home buyers, end.
According to Hand Smith, chief investment officer at Haverford Investments, businesses will not hire more workers if uncertainities from Washington are not cleared up.
Economists think that due to consumer spending, economic recovery will be not high.
According to Majority Leader Harry Reid, a tax break for hiring new workers will be discussed by the Senate on next Monday.
With the aim of recovering economy, many businesses are now urging their existing workers to work more to raise productivity. Rising productivity is the long-run method to raise living standards and gradually recover the economy.
As the result of productivity rise, working hours increased 1 percent. Output therefore reached highest rise since 2003 to 7.2 percent.
Economists think that besides promoting production, businesses should hire more workers to raise productivity and recover the economy.