Unemployment stays at 9.6% as schools, governments slash jobs

While 95,000 jobs were lost last month, the unemployment rate has remained steady at 9.6 percent, according to today's report. Movements in the labor market include an increase in private jobs and a decrease in government jobs, mostly in public schools. The increase in private jobs comes mostly from temporary employment and employment at food and drink establishments.

This poor report increases the likelihood that the Fed will purchase more treasuring bonds to stimulate the economy. This encouraged investors and pushed the Dow Jones industrial average above 11,000 on Friday for the first time since May.

Another bleak report has some worried that our recovery is in jeopardy. It is especially alarming to see how badly the education sector was hit last month. "It's huge. We're cutting one of the key things related to future productivity growth," said Heidi Shierholz, an economist at the Economic Policy Institute.

The author argues that unemployment continues to rise because of weak sales and the uncertainty about future taxes and policies. Businesses are just too worried to invest. While the Fed continues to attempt its fixes, the government also needs to work on gaining the public's support. Nothing will get fixed if people don't have faith in the economy.