The unemployment rate in US is at its highest in 15 years, a bleak scenario indeed!
The US employment bureaus report regarding unemployment was released on Nov 7 2008. It revealed that there was a more than the expected drop in payrolls. The over all scenario is not encouraging In fact it is a cause for worry for the new president elect and one of his immediate worries. The drop was expected to be 190,000 rather than the 240,000, which was reported. The unemployment rate also hiked up from 6.1%to 6.5%. This report came in as Obama was forming his team. He surely needs top work out a strategy to counter the downbeat data on business inventories for September.
This report will affect the debate and the strategies in white house. It is expected that there will be a two-pronged approach, which seems to be a strategy, as the new administration understandably wants to take credit for any progress. It is planned that step one would be to pass a package of $50 billion on Nov 17 and later another one in Jan which would be a larger one. A sure step to ensure popular support for the new government! It would get the credit for the miraculous new fiscal stimulus.
