US Unemployment Rate at 9.5 Percent

Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy’s road to recovery will be bumpy.

The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.


16 Responses to “US Unemployment Rate at 9.5 Percent”

  1. 1 Joseph Garcia July 2, 2009 at 11:40 AM

    9.5 percent unemployment is ridiculously high, and yet they predict it will shoot up to 10 percent this year. Some even think it’ll be even high than that. I know my cousin lost his job at the company he worked for last month. He’s going back to school in the meantime because he can’t find a decent job. I know several people who are doing the same thing, and hopefully we come out of this recession better than ever.

  2. 2 Dave Crider July 2, 2009 at 12:40 PM

    As you mentioned Joseph, I too lost my job of 16 years in November of 2007 due to this economy and am now going back to school to finish my Business degree. Luckily years ago when my wife worked at the same company as I she talked about wanting to go to college to be a nurse, I said do it and fully supported her, I knew the company I worked for would not be there forever. That decision has paid off big time now. I still think things are going to get worse before they get better especially in the midwest where I am from in my opinion manufacturing will never be where it was say 5 years ago.

  3. 3 James Dugger July 2, 2009 at 4:08 PM

    The fact unemployement is still growing, I would think that would go to show that this recession isn’t easing. My wife used to be in Human Resources (she is one of the many unemployeed now and as the previous posters have mentioned, went back to school), she still get’s email updates to keep her up to date on what’s going on in the HR world. The last update she received warned about when the recession does end, the top talent at most companies will begin to jump ship to new companies. The reason is that due to the hard economic times, cut hours, no raise, etc… the top employees are going to want to cut off that psychological memory of the hardships, knowledge that the company was not “there for them,” and move on to green pastures. Obviously this is not word for word, just as I remember it.

    Personally, I’m a firm believer that we will not see a recovery until jobs are created. What’s worse is CA is in trouble and they’ll wind up cutting even more jobs before they get done. I think we’re far from recovery, and those numbers that speak of recovery are coincidental, the last few buys for a long time.

  4. 4 KENDALL HOXSEY July 2, 2009 at 9:13 PM

    I have to keep reminding myself that what goes down must also come up. During the Great Depression I believe that unemployment was about 25% which is incredible to say the least. People are scared silly that we are nearly to a double digit unemployment rate. Even though it is a different world than it was back in 1929,the whole concept of economics seems to have not changed from the simple fact. The company where I work just had an all employee meeting discussing the company’s performance over this year. The have put a complete cap on overtime and have made sure to cut down on a lot of costs. For the first time this year, already into the second half of the year they hired two new employees.
    I believe that it will take a while to recover from this but I’m not too sure whether to even hope that we’ll come out of this mess wiser than we were when we got into it.

  5. 5 Dale Tu July 5, 2009 at 10:53 AM

    In my opinion, I would think that the unemployment rate would keep going up because of the economy and whats happening. Over the past 50 years we seen that the unemployment rate would creep up pretty slow. As I seen in the economy majority of stores are laying a lot of people off and not even hiring. I think that companies are starting to realize the value of the dollar and consumers know that the value of the dollar has gone higher. This is concluding to people saving their money since they are either unemployed or supporting themselves. Sooner or later I think that the rate of unemployment will decrease once the economy gets better.

  6. 6 Jessica Tsai July 5, 2009 at 9:15 PM

    Despite these numbers, part of the problem lies within the attitude of Americans seeking jobs. We are in the mindset that during this recession we should still be able to find employment that offers the same benefits and same pay as when the economy is functioning normally. While it is harder for recent graduates to compete in this job market, it is still possible to find a decent job at a good company-I have a friend who recently graduated from UC Berkeley and is working at Goldman Sachs starting in the fall, along with several other graduates who are also going to big-name companies with only a Bachelor’s degree. Moreover, my mother also has a friend who was laid off a couple months ago and has already found employment at a respectable company, along with nearly the same upper middle class salary he made at his previous job. I am not undermining the effect of the economy on the job market now but simply pointing out that the media tends to shed light on how unemployment is rising exponentially and fails to keep hopes up for those that are still seeking jobs. Yes, the economy is not at its best right now and it might take longer than we expect to improve but there is a light at the end of the tunnel and with a little compromise and hard work, finding a decent job without having to get a higher degree or put in endless hours to gain additional skills is very possible.

  7. 7 Presley July 6, 2009 at 1:36 PM

    The unemployment rate is going up so fast, that even part time jobs are being taken away. Its forcing more foreclosures and people trying to sell there houses. On the way to my brother’s school there are six houses in a row in foreclosure; the only people with the money to buy them don’t need a place to live. It feels like we as a society are moving in reverse back to the depression.

  8. 8 Evangelina Alvarez July 7, 2009 at 11:06 AM

    I appreciated that positive note that what goes up must come down. Though we are losing jobs were also trying to strategize with pay cuts even at the Napa Valley JC, I’ve heard. I do agree we’ve got to create jobs to get ourselves out of the mess, but it is too risky for most businesses just barely struggling to get by.

  9. 9 Nathan Martin July 8, 2009 at 8:10 AM

    It seems unlikely to me that the unemployment rate will drop any significant amount in the near future. Personally I think that a lot of businesses were operating at much lower efficiency than they could have been, to include local and state governments. This economic disaster has opened the eyes of many employers and business owners, and I think that they are simply trimming the fat in a lot of cases. The company I work for has laid off almost 50% of its employees, please don’t get mad at me for saying this because I know that a lot of hard workers have been laid off simply because of the bad economy, but in my situation, every person laid off was a non-contributor to economic growth. I think that a lot of companies had employees on board that were not carrying thier wieght and this was the perfect opportunity for them to trim down to the hard workers.

    At the same time, I think this will be a long and difficult road to recovery based on the fact that our economic structure has largely changed from being one of production and manufacturing to one of services, especially in California. California has made it so hard for manufacturers to survive in our state that many have moved to new areas, because of this, jobs have left as well.

  10. 10 Dave Stevenson July 8, 2009 at 12:30 PM

    To Jessica’s point, yes there are jobs out there and you don’t necessarily have to have a PhD. However, as more and more of the “upper-middle class” jobs get cut, and those folks with families and major responsibilities are laid off, those folks come down the proverbial food chain and take the jobs for less pay, and these are the jobs that the fresh out of college work force are looking for. It’s a basic trickledown theory. Folks will do what they have to do to make sure their families/responsibilities are taken care of in these times (me being one of them). A perfect example of this to me is Starbucks. Anyone been to a local Starbucks lately – traditionally employees in there are younger, “hipper” type folks. Lately, I have seen 40+ year olds and grandmothers working there just for some income. Going to get worse before it gets better…

  11. 11 Tanisha/ Econ 100 July 9, 2009 at 11:06 AM

    In case no one has noticed, our road to recovery is bumpy and will continue to be bumpy unless we find a solution and work towards it as a whole. A 9.5% unemployment rate is out of control and there is nothing anybody can do about it. Companies are being very catious as to hiring because of the unstable economy. If companies hire employees in the state that this economy is in, we will be right back in spuare 1… Which is layoffs and an even higher unemployment rate.

  12. 12 Jennifer Meyers July 10, 2009 at 6:38 PM

    This is a very tragic time for our country. With companies filing for bankruptcy and people that have had their jobs for 20 plus years losing them at the drop of a hat, who knows what to excpect in the upcoming years. I used to have two jobs, now I only have one and have been looking for a second job ever since. It’s just not out there, our economy is at a halt and all we have to do is get through it together. I have noticed that people are going through a lot of stressful times but it seems like they all have a sense of understanding and awareness that “anything can happen” no matter how comfortable you may think you are. No matter what job you have, either it be a teacher or an owner of a multi million dollar conglomerate, you’re just not safe from the ever consuming capitalist country we live in.Cheers.

  13. 13 Dave Crider July 13, 2009 at 9:10 PM

    As I stated above I am from Michigan, I just recently caught an article where a Michigan congressman (Representative McCotter) had predicted the unemployment rate there could hit 20%.

  14. 14 Amanda Smith July 24, 2009 at 2:10 PM

    Well of course the road to recovery will be bumpy! Any recovery road is. That should be expected by now. But what the companies need to do is start hiring now, and not wait to see what the economy does. Because as soon as they start hiring and the unemployment rate goes down, people will feel better about spending and the whole ecomony will turn around.

  15. 15 Sanamjit Bains July 29, 2009 at 11:39 PM

    The road to employment recovery definitely seems to be bumpy when most companies have put a hold on new hire, and are managing running their activities with what they have. When these companies find new and efficient ways of working around with what is available and have the same output, they will be less inclined towards hiring more.

  16. 16 Jessica Schimke August 6, 2009 at 12:16 AM

    9.5% is definitely high, but it is not unprecedented. In bad times like this, it’s always good to put things in perspective and focus on the good things. We still have over 90% of our labor force employed, which is more than a lot of countries can say. At least there seems to be some signs pointing to the recession coming to an end fairly soon.

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