Posts tagged with: Bloomberg

Waiting for unemployment to drop? Don’t hold your breath

The economy won’t truly recover from this recession until unemployment finally begins to fall. Unfortunately, it doesn’t look like that’s going to happen any time soon.

U.S. Treasury Secretary Timothy Geithner last week said that unemployment in the United States may not peak until the second half of 2010.

For those of you looking for jobs, that means that the competition for available positions will continue to be extremely tough for the foreseeable future.

There are some good signs about the economy right now: Housing sales are slowly, but steadily, increasing again. The stock market has been solid. New housing starts are up. The economy is no longer shrinking as rapidly as it was earlier this year.

Still, until the nation’s unemployment rate begins shrinking any economic recovery won’t feel much like one. It’s hard to feel good about the economy when you’re out of work, or if you fear that you’ll be out of work at any moment.

And that’s the kind of economy we have now.

The amazing shrinking economy

It’s official: We are suffering through the worst recession in at least 50 years.

Feel better? I don’t.

According to this story by Bloomberg, the U.S. Gross Domestic Product fell at a 6.1 percent annual rate in the first quarter. That was even worse than originally forecast, and it follows a 6.3 drop in the final three months of 2008.

To make things even gloomier, the Bloomberg story quotes Richard Berner, the chief economist at Morgan Stanley in New York City, as saying that the country will rebound from the recession very slowly, and that the recovery will be a weak one. Way to cheer everyone up, Berner!

Of course, most people don’t need the Commerce Department to tell them that this is one bad recession. They only have to look at their dwindling paychecks, their soon-to-end unemployment benefits or the bills they’re struggling to pay.