U.S. Economy Worsens

June 19, 2008

Dow Plummets, Gas Rises, Jobless Rate Spikes, Foreclosures Up,

Financial Turmoil: Not A Good Way To End A Presidency

President George W. Bush and Condoleezza Rice

The U.S. economy took another bad turn on Friday of last week, as the Dow Jones plummeted 400 points and gas went up to $139 per barrel.

The new national average for gas in America is $4 per gallon, which is a record high. Russia is predicting it will reach $250 per barrel.

Unemployment is also up in the U.S., as the economy lost 49,000 jobs last month. It is the biggest rise in job losses in almost 33 years. As I mentioned last week, foreclosures have hit a record high as well.

Clearly something needs to be done, but Congress is a house divided, and therein lies the problem.

Jobless rates jumps to 5.5 percent — biggest rise since `86

Friday June 6, 9:19 am ET – Unemployment rate jumps to 5.5 percent in May, biggest rise since 1986; payrolls cut again

WASHINGTON (AP) — The nation’s unemployment rate jumped to 5.5 percent in May — the biggest monthly rise since 1986 — as nervous employers cut 49,000 jobs.

The latest snapshot of business conditions showed a deeply troubled economy, with dwindling job opportunities in a time of continuing hardship in the housing, credit and financial sectors.

“It was ugly,” said Richard Yamarone, economist at Argus Research.


U.S. Jobs Fall For Fifth Consecutive Month

May’s U.S. unemployment rate rose to 5.5%, up from 5.0% in April–the largest jump in the jobless figure since October 2004 and the fifth straight month of job losses, according to the Labor Department’s monthly report Friday.

Job losses continued their downward trend in May, with 49,000 jobs cut from payrolls, up from April’s revised number of 28,000 job cuts.

The larger than expected jump in unemployment delivered a psychological blow to Wall Street, which has been hungry for signs that the economy is on the road to recovery. The Dow was down by 1.1%, or 140 points, Friday morning. May’s job losses were less severe than feared–economists had been expecting job cuts between 60,000 and 70,000–but the unemployment rate was moved up well beyond the consensus forecast for a rate of 5.2%.


Dow plunges 400 points on oil, jobs news

June 6, 2008 – The U.S. stock market took a major hit on Friday as the Dow Jones Industrial Average fell nearly 400 points on news of steep job losses and soaring oil prices.

Before the trading day started, the U.S. Labor Department reported that 49,000 jobs had been lost in May and the unemployment rate had jumped from 5 percent to 5.5 percent, the highest seasonally adjustment monthly increase in 33 years.



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