U.S. Lost 131,000 Jobs as Governments Cut Back

Government is implementing a contractionary fiscal policy-trying to limit the amount of government spending. UR in the month of July were at an unbelievable 9.5%. Economists are predicting that the recession is going to "double-dip" and that the Obama administration's stakes are on the line. Although UR did not worsen, this is partly contributed to the fact that people started to leave the Labor Force. Although this a good this because this is lessening the UR, we have to stay conscious that if people don't only want to come back into the LF, but need to rather, than these Unemployment numbers can go back dramatically- and at an increasing rate.