The recession is supposed to be over, however a lot of people are nevertheless out of work. The government pulled out its FDR playbook, and tried to use some huge money advances to try and create some more jobs to help ease the situation. It did not work. Unemployment has really gotten worse overall. There were27 states that had unemployment rates rise in the month of August. There were 10 states with no change, and 13 states with a decrease. Still, we are assured the recession is over. There does not appear to be much reassuring of that proclamation.
Unemployment surges in August
The unemployment rate has shot through the roof over the last month. There were, according to CNN, 27 states which had an increase in unemployment in August. The highest joblessness rate within the nation is in Nevada. Nevada sits at a dismal 14.4 percent joblessness. Michigan and California have joblessness rates of 13.1 and 12.4 percent, respectively. However, this isn’t exactly a surprise. These have been the hardest hit states in many ways in the recession. Automakers even got emergency loans in a bailout. It didn’t seem to add to many jobs in that region.
It had been the fault of the Census
The proximate cause, according to USA Today, was the end of the 2010 Census. The Census employed 114,000 people on a temporary basis. Jobs are slowly starting to be added by private employers. About 67,000 private sector jobs were added, which has to be a relief for individuals looking for a pay day again. The end of the Census was envisioned to have a negative impact on the joblessness level and jobless claims, as there is not enough instant cash floating around to hire all of them back into the private sector.
Recovery cannot take place quick enough
There is evidence the decline of economic activity has stopped, and thus the recession is technically over. It is difficult to think of the recession as over with unemployment high and a credit system that seems depressed.
Additional reading
USA Today
usatoday.com/money/economy/2010-09-21-unemployment-rate-state_N.htm
CNN
money.cnn.com/2010/09/21/news/economy/state_unemployment/index.htm
