This morning the Labor Department reported the news that was widely expected, but still so very grim, the United States economy finished 2008 with a loss of 2.6 million jobs. The 2.6 million jobs lost is the most since 1945. Even more stunning is the fact that the last four months of the year accounted for 1.9 million of those job losses. The monthly number for December was right in line with analysts expectations, showing a loss of 524,000. The unemployment rate rose more than most strategists were expecting to 7.2%. Manufacturing employment tanked by 149,000 in the month of December, led by many job losses in the automotive industry. Another statistic that speaks to just how bad the economy is, retailers slashed 66,000 jobs in December, a month that is typically their strongest month of the year.
A deeper look within the employment numbers shows that the top line numbers don’t even show just how bad things are. The so-called under-employment number, which includes workers who want a full-time position, but are only able to find part-time positions rose to 13.5% in the month of December, from 12.6% in November. Our economy has deteriorated to the point that many people have given up hope of finding a full-time job and are settling for a part-time position, or even multiple part-time positions to try to get by.
There is no way to spin these numbers in a positive way. Things are very bad on the job front and there is no sign of things getting better. There are so many negative things happening to consumers in our country right now, but none of them are as important as the threat of or the actual loss of a job. Until the job picture begins to turn itself around, we will continue to be in this downward spiral that seems to be completely out of control. Keep saving and prepare for the worst, while hoping for the best for our overall economy and your individual financial position!
