Recently, unemployment lines have been reflecting what those looking for work already know: finding a job has gotten much more difficult. According to the most recent data from the Bureau of Labor Statistics, unemployment has hit the highest its been in over 25 years. In February the jobless rate jumped from January’s 7.6 percent to 8.1 percent.
During the month, U.S. employers did away with a total of 651,000 jobs. This made February the third consecutive month that the country lost more than 650,000 positions, which is the first time this has occurred since 1939. According to Bloomberg News, around 80 percent of economist surveyed said they had predicted the job losses to be around this high, but had expected that unemployment would only be 7.9 percent.
BLS data shows that almost all of the major industries in the country experienced a decline in employment during the month. Health care was once again one of the few areas of the job market that added new positions, with 27,000 jobs being generated. The largest decrease in jobs was seen in professional and business services, manufacturing and the construction industries.
Professional and business services saw a decrease of 180,000 jobs during the course of the month. This was followed by the manufacturing sector, where 168,000 positions were cut. The largest part of these layoffs happened in part of the industry that deals with “durable goods”.
The construction industry came in third with 104,000 jobs lost. This sector has been struggling for some time due to the fact that fewer people can afford to purchase new properties. Because of this, the need for new homes has seriously declined. Since the industry saw its peak in January of 2007, approximately 104,000 jobs have been lost. According to the BLS’ most recent employment situation release, around two-fifths of these losses have happened over the course of the last 4 months. Both residential and nonresidential construction saw a drop.
The financial industry also continued its struggle during February. For the month this sector saw the loss of 44,000 jobs. Since it’s employment peak in December of 2006, employers in this sector has done away with 448,000 jobs. Officials from the Bureau say that half of these positions have been done away with in the last 6 months.
With so many people having trouble making ends meet, less money is being spent on unnecessary consumer goods. This in turn has severely injured the retail trade, which lost 40,000 jobs in February and only serves to continue the already existing economic problems.
Judging from current trends, many experts believe that things should begin to get better around by the end of 2010 at the latest. CNNMoney.com recently reported a study that found that around 85 percent of advisors agree on this fact. Despite this, it may take some time before people really recover and begin to have faith in the economy again. Another 15 percent said that they believed that it will take longer before we’re even on the right track.