Unemployment Causes The Economy To Suffer
25 June 2012 14:00 - Phoebe Robinson

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Unemployment Causes The Economy To Suffer

After much discussion to find a solution to the European debt crisis, the leaders of the Eurozone agreed to provide up to $164 billion to try to improve the Spanish economy. At home, economic data continues to disappoint and any discussion of the economy improving seems to be a last ditch effort to avoid talk of a recession. The US Federal Open Market Committee announced it would “maintain a highly accommodative stance for monetary policy,” indicating it also sees signs of an ongoing economic weakness.

It is not looking positive as unemployment claims of 370,000 down only 2,000 from the week before are not a greater indication of recovery. Some forecasters have even gone as far to say that they think there is a recession coming that will be as bad as the Great Depression of the 1930s.

This prediction is set on the ongoing labour situation where the administration boasts of job creation of around 100,000 for a month while the jobs lost by virtue of the weekly first time unemployment figures amount to 350,000 jobs lost. A weekly job loss of over 370,000 translates to 1.5 million for the same month. For job creation to occur there needs to be an introduction of a new industry, without prospects are not bright for the economy!