In the latest report by the Labor Department on Thursday, US jobless figures jumped to a record 5.56 million earlier this months, and new claims rose to 652,000 in the week ended March 21st, showing considerably higher figures than expected by analysts.
The unemployment rate, 8.1 percent in February, may rise as high as 9.4 percent by the end of the year, according to economists surveyed by Bloomberg News. The total number of people claiming benefits is the highest on records dating back to 1967.
The latest figures from the Commerce Department released Thursday, have also been slightly worse than previously reported with Gross Domestic Product falling at a 6.3 per annual rate from October through December, as opposed to the previously reported 6.2 per cent decrease.
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The numbers will continue to go up, even as the U.S. might be making a recovery.
President Obama said in his internet address today, “I don’t think we’ve lost all the jobs we’re going to lose in this recession.”
“Employment is typically a lagging indicator” of the economy’s strength, he says, because businesses typically don’t start hiring again until after they’re sure that demand and other key indicators are on the rise.”