US Economic Crisis Claims 5,98,000 Jobs within A Month

As per the latest report from the Labor Department in US, 5,98,000 has been lost during the month of January in USA and there is an erosion of almost 3 million jobs since the beginning of the recession in Dec 2007. The unemployment figure shot up to 7.6 % from 7.2 % last month. The consumer spending looses further and the crisis of banking system further deepens due to the impact. The growth of Asian countries like China, Japan and South Korea also slowed down. A major part of Europe is already in recession.

Almost all sectors of industries cut jobs during the period of last month. Manufacturing industry eliminated 207,000 jobs. 111,000 Construction jobs have been lost. Also, Retail industries removed 45,000 jobs during the month.  Many economists think that US will loose two million more jobs even though the economy may have shaky expansion during second part of the year. Even though Congress plans to provide further economic stimulus package for the industry, there is a bleak chance that unemployment scenario will improve until the end of year. Congress is working out a plan which is a combination of tax cuts and spending that would total about $800 billion in order to jump start the economy.

“This recession is of a different order of magnitude,” Nigel Gault, managing director at IHS Global Insight in Waltham, MA said. “We haven’t had a crisis that is this global in nature.”

Source: The New York times

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