Sunday, October 24, 2010

Labor Market Recovery Remains Sluggish Despite Decrease In Jobless Rates

Jobless rates decreased in 23 states, increased in 11 and 16 experienced no change in the month of September. While a decrease in jobless rates seems promising, 34 states reported a decrease in the overall labor force. This is probably the result of discouraged workers ceasing the job hunt. Furthermore, 21 states reported having the same or elevated rates of unemployment as they did a year ago in September (2009). It is no surprise that states that were hit the hardest by the housing bust, are struggling the most. California and Florida are among these states under pressure, as well as Nevada, which is number one in the country for highest unemployment rate of 14.4%, and Michigan with 13%. Some feel that the Obama Administration’s failed stimulus package is to blame, but officials in the administration argue that rates of joblessness would have been even worse without the stimulus. Altogether, recovery in the labor market continues to remain slow moving.

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