U.S. Real Unemployment Hits Depression Level Numbers of 17.5%

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Economics / Recession 2008 - 2010 Nov 09, 2009 - 01:02 AM

By: Mike_Whitney

Best Financial Markets Analysis ArticleThis is bad. Double-digit unemployment. In October, unemployment soared to 10.2%. 16 million people are out of work. The average work week is down to 33 hours. Payrolls have contracted 22 months straight. The "real" jobless rate (underemployment) is now 17.5% and rising. These are Great Depression numbers. The country is in a Depression. So, why is there no talk of federal work programs? Why no WPA?

The dot.com boom fizzled and the housing boom is kaput. There's no driver for new jobs; no more bubbles. Personal bankruptcies are up, foreclosures are soaring, the food banks are maxed out, and the homeless shelters are bulging. Everyone is poorer and the economy is broken. People need jobs, good paying jobs with benefits. Government jobs.

Where's Obama? Preparing his next speech?

No more speeches. No more grand oratory or gibberish about "change". Think: debt relief. Think: targeted stimulus. Think: jobs. And, then, get on with it.

NO JOBS AND NO CREDIT

Consumer credit is shrinking at record pace, $14.8 billion in September alone, 7.2 percent annually. People are paying off balances or writing-down debts. When credit shrivels and wages stagnate, the economy tanks. It doesn't matter how much liquidity the Fed pumps into the stock market, the underlying economy is still contracting. The economy needs stimulus, and lots of it. Anyone can see it.

http://www.marketoracle.co.uk/Article14893.html