In August, the White House projected that unemployment would peak at 10 percent sometime in the middle of next year. The BLS’s October labor report shows that unemployment passed the 10 percent level in October.
U.S. unemployment in October was 10.2 percent. Total nonfarm payroll employment declined by 190,000 in October. In the most recent 3 months, job losses have averaged 188,000 per month.
The U.S. will continue to see a jobless recovery. Unemployment is likely to increase in the near future. Companies are increasing productivity, demonstrating that they can make earnings with fewer employees. Much of the “stimulus” spending has gone to transfer payments that actually encourage unemployment. The “Cash for Clunkers” program registered a one-month increase in auto sales. Since then, auto sales have remained at the low pre-Clunker levels.
