The Rise in Unemployment Causes Unease for the Class of 2010

By: Sara Sindelar

As a senior in college my main concern is making it to the finish line in May, but more importantly, I hope to get there with a job offer in hand. Although the stock market is gradually making its way higher, the unemployment rate keeps increasing which makes all of us in the graduating class of 2010 more than a little uneasy. The Labor Department recently announced that the August unemployment rate reached 9.7% which was an increase from July’s 9.4% and a 26 year high. Compared to July, there were less job losses in August but the increase in the overall unemployment rate gives us cause for concern. Is there hope for the economy in the near future? “The data reinforced expectations that employers will begin adding jobs by early next year, though the pace of job creation remains uncertain.” (Wall Street Journal, September 4, 2009). Investors and consumers both need to gain confidence that the economy will turn around, it is a pure cycle. Jobs are created by increased demand by consumers for the goods and services offered so we need consumer confidence to grow before more jobs are created. An increase in consumer confidence will take a lot more time and action, only time will tell. Though, there may be some promising signs that the economy is making a positive turn I am still very uneasy about what the next months bring for all of us.


Reference:
http://thecaucus.blogs.nytimes.com/2009/09/04/the-early-word-unemployment-rate-goes-up/
http://money.cnn.com/2009/09/04/markets/markets_newyork/index.htm?postversion=2009090413
http://online.wsj.com/article/SB125206688861886325.html



By Sara Sindelar