U.S. unemployment rate dropped to 25-year high

The U.S. economy lost in February more than 650,000 jobs. In addition, the Labor Department revised the figures for previous months sharply downwards. Accordingly, in December as many jobs since 1949 as no longer broken.
The unemployment rate in the United States in February reached its highest level in 25 years: it rose from 7.6 to 8.1 percent. Companies built in the last month from 651,000 jobs. Significantly revised upwards the figures for January and December. The Labor Ministry estimates the job cuts in these months, now on 681,000 and 655,000, previously, the figures were 598,000 and 577,000 referred to. The losses in December are so on a monthly view, the biggest negative since October 1949 dar.

The markets reacted still pleased: The Dax climbed by 25 meters to 3735 points. The Bund futures were slightly, the June contract quoted at 125.1 meters, 20 points below the daily high. Market participants said the reaction so that investors still with poorer labor market figures were calculated. Anders, however, the sentiment on the currency: The euro depreciated by 0.3 percent to $ 1.2708 and cost.

The downturn in the global economy leads companies such as the car manufacturer General Motors (GM), the retailer Sears and Wall-Street-house JP Morgan to dismantle thousands of posts. The United States since December 2007 in the recession. In the third quarter, GDP shrank for the year projected at 0.5 percent in the fourth quarter, even in the minus 6.2 percent.

Since the beginning of the recession were now 4.4 million jobs lost. “We are in panic mode at the moment,” said Ethan Harris, economist at Barclays Capital. “The company reduced its workforce to adapt to the staggering global economy.”

Pessimistic outlook for 2009
Most experts give a pessimistic outlook – and write the year 2009. The central bank’s Federal Reserve, for example, is in the middle of their expected ranges assume that the economy shrinks by 0.9 percent. For 2010 but she returned to a recovery. 2011 expected up to five percent. The unemployment rate in 2009, it provides up to 8.8 percent climb until 2011 and again fall.

Federal Reserve Chairman Ben Bernanke, the recovery in the coming year, but depending on the stabilization of the banking system and financial markets. Washington is currently undergoing the 19 largest banks in the country to a stress test, which the more capital is made subject. Before the Congress, Bernanke dismissed in relation to the growth forecasts indicate that the downside risks are greater than the upside opportunities.

Government and central bank lift itself against the downturn
The government of President Barack Obama with a lift-billion dollar economic program, help for homeowners and a new bank rescue plan against the dramatic economic downturn. On 17 February Obama the “Recovery Bill” in the amount of $ 787 billion. Obama has set itself the goal of 3.5 million new jobs to create or maintain existing ones.

Obama’s program costs: Overall planning of the new U.S. President for the current year, with record spending of nearly 4000 billion $. In addition to the initiatives already adopted the draft budget provides for Obama again a buffer of $ 250 billion for bank rescues possible before. The budget deficit is rising at 1750 billion dollars. This corresponds to approximately twelve percent of GDP.

Even the Fed is involved in the fight. On Tuesday launched the program “Term Asset-Backed Securities Loan Facility (Talf). Talf is a purchasing program with a volume of $ 200 billion for securities with auto loans, credit card debt and student loans are collateralized. The aim is to improve the liquidity in the trading of these securities to increase. Applications from banks, such securities intended to be on 17 March, the state funds on 25 March suffice. The program allows the allocation of new loans of $ 1000 billion, informed the Ministry of Finance and with the Fed.

 

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