Sunday, May 16, 2010

Unemployment is going to surge

Unemployment is likely to surge above 10 percent during the next few months as millions of “missing” workers return to the labor market.

The spin is “The increase in unemployment is a sign of a stronger job market, but it is also a sign of how weak the job market still is and vulnerable the recovery is to anything that might go wrong,” Economist Mark Zandi wrote in an e-mail to The Hill.

The reality is that unemployment benefits are running out for many unemployed. The workers are now looking for work. There are no jobs out there for most of these folks.
In April, 805,000 workers re-joined the labor pool, causing the unemployment rate to jump to 9.9 percent even as the economy created jobs. It will increase more as more people keep looking for jobs.