Friday, August 5, 2011

recession 2011 | US in Fear of Double Dip Recession 2011

   Concerns over the weak U.S. recovery and Europe’s inability to tame its spreading debt crisis have turned an intense spotlight on the monthly non-farm payrolls report.

“The report is going to be very critical. One of the things that has been the largest headwind to economic growth has been the high unemployment rate,” said Jason Ware, a senior research analyst at Albion Financial Group in Salt Lake City, Utah.

U.S. stocks on Thursday suffered their worst sell-off in two years. European stocks slumped to a level not seen since after the financial crisis in mid-2009.

Until recently, most observers believed the American economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the United States economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 percent in G.D.P. from top to bottom.

With unemployment as high as 20% in may parts of the country, and even higher in some parts, accounting for those who have given up or stopped being reported as unemployed, the numbers of unemployed are becoming a staggering number in the millions of people without jobs.

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