New data released Friday painted a sign of the deepening conditions of the recession here and abroad at the national unemployment rate soared to 8.1 percent. These numbers beat the project unemployment estimates which sat around 7.6 and 8.1 percent. This staggering unemployment rate marks the highest unemployment level since 1983 and could potentially worsen if stimulus measures fail to take hold.
Some experts are warning that the current stimulus will not be enough to counter current job loses. President Obama’s plan initially was designed to create and keep 3.5 million jobs, while over four million jobs have already been lost in the downturn. A few economists are wondering if the stimulus plan is bold enough to turn the tide against rising unemployment, meaning that new steps may have to be taken in the future, or the economic situation will deteriorate further.
Bloated unemployment rolls take resources that can be used for other programs, such as job creation, training and other infrastructure projects. As stimulus money begins to flow from the federal government and into state coffers, we will soon be able to tell the effects of this cash injection into the American economy.