Dec. Jobless Rate Jumped To 7.2%

Highest Unemployment Rate Since Early 1993, As Employers Slash More Than Half-Million Jobs

(CBS/AP)  The nation's unemployment rate bolted to 7.2 percent in December, the highest level in 16 years, as nervous employers slashed 524,000 jobs. The labor market is expected to remain weak as mass layoffs continue.

The Labor Department's report, released Friday, underscored the terrible toll the deepening recession is having on workers and companies, and highlights the hard task President-elect Barack Obama faces in resuscitating the flat-lined economy.

For all of 2008, the economy lost a net total of 2.6 million jobs. That was the most since 1945, when nearly 2.8 million jobs were lost. Although the number of jobs in the U.S. has more than tripled since then, losses of this magnitude are still being painfully felt.

Mr. Obama called latest report of U.S. job losses Friday "a stark reminder of how urgently action is needed" to revive the nation's staggering economy. Mr. Obama called 2008 "the single worst year of job losses since World War II."

"Today's jobs report only underscores the need to move with a sense of urgency and common purpose," said Mr. Obama.

With employers throttling back hiring, the nation's jobless rate averaged 5.8 percent last year. That was up sharply from 4.6 percent in 2007 and was the highest since 2003.

Although economists were forecasting even more payroll reductions in December - around 550,000 - job losses in both October and November turned out to be deeper than previously estimated. Revised figures showed that the employers slashed 584,000 positions in November and another 423,000 in October.

The unemployment rate, meanwhile, rose from 6.8 percent in November, to 7.2 percent last month, the highest since January 1993. Economists were expecting the jobless rate to rise to 7 percent.

Job losses were widespread in December. Construction companies slashed 101,000, and factories axed a whopping 149,000 jobs. Professional and business services got rid of 113,000 jobs. Retailers eliminated nearly 67,000 jobs, and leisure and hospitality reduced employment by 22,000. That more than swamped gains in education and health care, and the government.

Employers are chopping costs as they try to cope with dwindling appetite from customers in the U.S. as well as in other countries, which are struggling with their own economic problems.

Workers with jobs saw modest wage gains.



Average hourly earnings rose to $18.36 in December, up 0.3 percent from the previous month. Economists were expecting a 0.2 percent increase. Over the year, wages have increased 3.7 percent, although high prices for energy and food earlier this year made people feel like their paychecks weren't stretching that far.

Investors sent stocks sharply lower Friday, although the reported job losses were fewer than feared.

"If you look at the number objectively, it's a bearish number. It's going to elicit some selling," said Nick Kalivas, vice president of financial research at the brokerage MF Global. "The unemployment rate at 7.2 percent is pretty ugly."

In midmorning trading, the Dow Jones industrial average fell 113.81, or 1.30 percent, to 8,628.65.

Broader stock indicators also lost ground. The Standard & Poor's 500 index fell 14.20, or 1.56 percent, to 895.53, and the Nasdaq composite index fell 35.48, or 2.19 percent, to 1,581.53. The Russell 2000 index of smaller companies dropped 13.08, or 2.61 percent, to 488.93.

Following Friday's report, the White House acknowledged that the rise in unemployment over the last few months reflected the economic slowdown caused by problems in the housing and credit markets, and promoted President Bush's actions in response, reports CBS News White House correspondent Mark Knoller.

"Understanding how severe the problem was, the President worked aggressively to address the root causes of the current economic problems, and he signed an additional expansion of unemployment insurance benefits to help more Americans weather the downturn," said press secretary Dana Perino.

The U.S. recession, which just entered its second year, is already the longest in a quarter-century, and is likely to stretch well into this year. The fact that the country is battling a housing collapse, a lockup in lending and the worst financial crisis since the 1930s make the current downturn especially dangerous.

G&K Services Inc., which provides uniforms and facility services, on Friday said it is eliminating 460 jobs as it aims to trim costs amid weak demand. And late Thursday, Intermec Inc., which makes electronic devices for tracking inventory, said it plans to cut 150 jobs, or 7 percent of its work force.

Earlier this week, drugstore operator Walgreen Co., managed care provider Cigna Corp., aluminum producer Alcoa Inc., data-storage company EMC Corp. and computer products maker Logitech International all announced major layoffs to cope with the recession.

All the problems have forced consumers and companies alike to retrench, feeding into a vicious cycle that Washington policymakers are finding difficult to break.

Obama says a bold approach is needed to bust through this cycle and revive economy.

"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," he said Thursday.

"If nothing is done, this recession could linger," Obama warned. "The unemployment rate could reach double digits."

Obama, who takes over Jan. 20, is promoting a massive package of tax cuts and government spending that could total $775 billion over two years. With add-ons by lawmakers, the package could swell to $850 billion, his advisers say.

Even with a new government stimulus and the Federal Reserve's decision to ratchet down a key interest rate to an all-time low, the unemployment rate is expected to keep rising. Some economists think it could hit 9 or 10 percent at the end of this year.

[allulosers]

Remember, without the government enforcing laws of private property and monetary policy, Rush would not be able to maintain his "self sufficient" status.


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Posted by Fahren451

You''ll get no argument from me on that point. It''s not that we Conservatives are anti-government, it''s that are anti-govt running every aspect of your lives. Just like the lazy liberals want.....

See what I mean?

[fahren451]

Well, I must take my leave for now. It has been real. Dont cave into the liberal ideology....it will do you, personally, no good. But it will do everything, for the government.

Posted by ALLULOSERS at 11:37 AM : Jan 10, 2009

Remember, without the government enforcing laws of private property and monetary policy, Rush would not be able to maintain his "self sufficient" status.

[allulosers]

Well, I must take my leave for now. It has been real. Dont cave into the liberal ideology....it will do you, personally, no good. But it will do everything, for the government.

[fahren451]

That is fine. Like I said, to defend total government control is absurd. And yes, I am a Conservative.

What else would I be? To point out the fallicies of the liberal ideology would not make me a liberal....wouldnt you say?

Posted by ALLULOSERS at 11:26 AM : Jan 10, 2009

Absolutely, you are a conservative. I will give you that Neo-Liberals are as bad as Neo-Conservatives. They both want to tell you what to do, they both have their Dogma that can not be questioned. They represent stagnation and ultimately, paralysis.

Our nation is a child of the Enlightenment and to lesser extent the Renaissance. Both liberal movements, minus the dead end Dogma.

[allulosers]

Your "agenda" is eminently clear PRO REPUBLICAN...your so referenced ideology is copied from a book not original not you impress me give me one original idea that you can call your own and I shall marry you today ....




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Posted by ms1-1-1

Perhaps your perception that I do not have any original thoughts is the reason why you want to marry me. One liberal marrying another.....

[allulosers]

Your every word oozes conservative "Think Tank". History would indicate that the Mixed socialist/capitalist economy that we have been practicing since the 1930s worked. I will give you your "Free Market", but not without regulation. How is that for impartiality?


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Posted by Fahren451

That is fine. Like I said, to defend total government control is absurd. And yes, I am a Conservative.

What else would I be? To point out the fallicies of the liberal ideology would not make me a liberal....wouldnt you say?

[allulosers]

Why is it you are bothered by my opinion? Everyone has some sort of agenda, whether it is as basic as providing for ones self to an overarching socio-economic or political ideology.


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Posted by Fahren451

Earlier, you asked my how I knew you were a liberal, even though you didnt exactly come right out and state that you were.

To me, I really dont care. But your responses, if I may be so bold, leads me to believe that you are. By you defending against what I''ve laid out before you about the liberal mindset, is yet another clue as to the reason I think you are a liberal.

Does your opinion bother me? No. As stated earlier, I just point out where you are wrong in your thought processes.

[fahren451]

FAHREN451 -- For example, I have history on my side where destructive practices and policies damage the core fabric of free societies.

Although you may not agree, I merely point out the fact that the modern day liberal ideology, if enacted from the political and governmental perspective, leads to a nanny state which stifles intitiative and promotes a society of worthlessness.

Posted by ALLULOSERS at 11:19 AM : Jan 10, 2009

Your every word oozes conservative "Think Tank". History would indicate that the Mixed socialist/capitalist economy that we have been practicing since the 1930s worked. I will give you your "Free Market", but not without regulation. How is that for impartiality?

[fahren451]

I have lost nothing. I have no agenda on here other than to point out persons of the modern liberal mindsets supposed infallibility of how they percieve society should be governed.

Posted by ALLULOSERS at 11:12 AM : Jan 10, 2009

Pointing out my supposed liberal mindset would infer that you have agenda of your own. You play the part of impartial observer, but the impartial observer would have tired of this conversation long ago.

Why is it you are bothered by my opinion? Everyone has some sort of agenda, whether it is as basic as providing for ones self to an overarching socio-economic or political ideology.

[allulosers]

FAHREN451 -- For example, I have history on my side where destructive practices and policies damage the core fabric of free societies.

Although you may not agree, I merely point out the fact that the modern day liberal ideology, if enacted from the political and governmental perspective, leads to a nanny state which stifles intitiative and promotes a society of worthlessness.

[allulosers]

If I have an agenda, then so do you and it will ultimately come down to a battle of our supposed ideologies. You will lose in an economically hostile environment.

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Posted by Fahren451

I have lost nothing. I have no agenda on here other than to point out persons of the modern liberal mindsets supposed infallibility of how they percieve society should be governed.

[fahren451]

If it means that much to you, then yes, you are correct. No one is completely self sufficient. However, in the context of how I was using the term, I was describing his self sufficiency in the aspect of being able to take care of himself without the need for govt reliance.

Posted by ALLULOSERS at 10:56 AM : Jan 10, 2009

The government enforces the laws that keep our system of living intact. Rush is dependent on the government to keep the wealth that he has attained to maintain his "self sufficient" life style. Is this simple enough for you to understand or are you going to continue to distort the meaning of my word to suit your agenda?

If I have an agenda, then so do you and it will ultimately come down to a battle of our supposed ideologies. You will lose in an economically hostile environment.

[allulosers]

By the way, how does your quote counter the validity of mine? You are claiming mine is a distortion. It is up to you to prove that my quote is not genuine and you have not provided that proof.


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Posted by Fahren451

FAHREN -- Your response to this is classic liberal thinking. I ask you this: Why would be up to him, to prove it? Why not YOU prove that you are right? Is it because you are relying on someone else to do your thinking for you? A classic liberal thought process...


Look, I would love to know what it is that you think makes me a "liberal". Posted by Fahren451

Your own words give it away.

[allulosers]

Now, the mere fact that Oreilly "misspoke" about what prize he had won, sent the liberal Al Franken on almost a 6 year mission to discredit the man merely because of that issue.

In fact, Franken even wrote about it in his book (and I wont plug it here).

So, having said that FAHREN, this discribes an almost mental neurosis of a need of self gratification just to prove someone wrong.

This is exactly what you are doing with the term "Self-Sufficient" that I laid out earlier.

If it means that much to you, then yes, you are correct. No one is completely self sufficient. However, in the context of how I was using the term, I was describing his self sufficiency in the aspect of being able to take care of himself without the need for govt reliance.

[allulosers]

Please quote where I am looking to for or justifying "self gratification". This is just an outright distortion.


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Posted by Fahren451

Sure, I''ll lay out a perfect example for you that I think you might understand:

A few years ago, there were two individuals of different ideological philosophies, sharing a stage at a book signing event. Those two individuals were Bill O''Reilly, and Al Franken (keep in mind, this is just one example)...

Franken had mantled his show to a point of almost a fixated mission, to prove O''reilly had to be discredited for everything he says simply because he made a statement that he received a polk award, when actually he received a "Peabody" award.

Continued......

[fahren451]

JMAGAROTZ -- Without making is seem like I''''m "bagging" on FAHREN451, it is plainly simple to see, what this individuals thought processes are (ie, being a liberal).

In his mind, his ideology is what is deemed "Good" for his view of a country. However, history has already shown us time and time again, that modern day liberalism does more to destroy the fabric of a free nation, than does than does that same collective philosophy does to "Cure" a nation and keep it free.


Posted by ALLULOSERS at 10:44 AM : Jan 10, 2009

Look, I would love to know what it is that you think makes me a "liberal". And since you use this word again and again. Maybe you should define it. Because its original usage was defined as open to new views. Jesus was a "liberal" of his time, even Mohammad was a "liberal" of his time.

[fahren451]

I, sir or madam, have read more than a few of the "Founding Fathers" quotes, enough to know a selective hack job when I see one. As for the word "Ignorant", I will leave you with these words, "Ignorance can be cured but, Stupidity is Terminal". There is no kind description for those who would twist the words of others to suit their adjenda. For example: "THE Tree of Liberty is a fragile one. Its Roots must occasionally be watered by soaking the Rich." Is your fabrication, the quote reads as follows:
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure". Thomas Jefferson
Go fabricate loser.



Posted by jmagarotz at 10:28 AM : Jan 10, 2009

"THE Tree of Liberty is a fragile one. Its Roots must occasionally be watered by soaking the Rich."

-- Thomas Jefferson

By the way, how does your quote counter the validity of mine? You are claiming mine is a distortion. It is up to you to prove that my quote is not genuine and you have not provided that proof.

[allulosers]

JMAGAROTZ -- Without making is seem like I''m "bagging" on FAHREN451, it is plainly simple to see, what this individuals thought processes are (ie, being a liberal).

In his mind, his ideology is what is deemed "Good" for his view of a country. However, history has already shown us time and time again, that modern day liberalism does more to destroy the fabric of a free nation, than does than does that same collective philosophy does to "Cure" a nation and keep it free.

[fahren451]

Posted by jmagarotz

JMAGAROTZ -- FAHREN demostrates the fabric of what I''''ve been discussing this morning with his every post.

The typical liberal mindset, as you already know, will fabricate anything and everything to suit his/her need for self gratification.

Self gratification, by whatever mean achieved, is one of the most important character traits of a liberal.

Posted by ALLULOSERS at 10:31 AM : Jan 10, 2009

Utter rubbish.

Please quote where I am looking to for or justifying "self gratification". This is just an outright distortion.

[fahren451]

I, sir or madam, have read more than a few of the "Founding Fathers" quotes, enough to know a selective hack job when I see one. As for the word "Ignorant", I will leave you with these words, "Ignorance can be cured but, Stupidity is Terminal". There is no kind description for those who would twist the words of others to suit their adjenda. For example: "THE Tree of Liberty is a fragile one. Its Roots must occasionally be watered by soaking the Rich." Is your fabrication, the quote reads as follows:
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure". Thomas Jefferson
Go fabricate loser.



Posted by jmagarotz at 10:28 AM : Jan 10, 2009

Put the rest of my quote in context then.