Fears of another recession have intensified with the news of the dismal job market in the United States. The job market may be worse that what the unemployment numbers suggest. On Friday, there were shock waves from the Labor Department report that in August employers have stopped hiring. This news has caused Asian stock markets to take a steep retreat. The lack of hiring surprised investors as the economists were expecting ninety-three thousand jobs to be added and even the hiring figures for June and July had to be revised lower.
The jobs picture showed that the picture of nine point one percent unemployment rate may even be worse because the fourteen million unemployed Americans also have to compete with the eight point eight million Americans who are working part time and are looking for full time work. When the companies find that consumer demand is starting to pick up, instead of adding more jobs they will most likely just increase the hours of the part time workers instead.
Many feel that the economy in the United States is stuck in neutral or even worse. The markets are worried about slipping back into another recession because there has not been any significant job growth. If and when the economy does improve, the unemployed will face another source of competition from the approximately two point six million people who have not been counted as unemployed for the simple fact is that they have just quit looking for a job. When they start looking for work again, then they will be counted as unemployed and the unemployment rate is going to rise even more.
On Thursday President Obama is going to make a major speech to suggest steps to help stimulate hiring.