Saturday, January 09, 2010

Much of the recovery stems from temporary factors, such as government stimulus efforts and businesses rebuilding inventories

SHOOT: The real driver of unemployment and the financial crisis is energy that is no longer cheap. This underlies everything else.
clipped from

WASHINGTON – Lack of confidence in the economic recovery led employers to shed a more-than-expected 85,000 jobs in December even as the unemployment rate held at 10 percent. The rate would have been higher if more people had been looking for work instead of leaving the labor force because they can't find jobs.

The sharp drop in the work force — 661,000 fewer people — showed that more of the jobless are giving up on their search for work. Once people stop looking for jobs, they are no longer counted among the unemployed.

People attend seminars seeking jobs in San Francisco

Most economists worry that 2010 won't be much better. Federal Reserve officials, in a meeting last month, anticipated that unemployment will decline "only gradually," according to minutes of the meeting released earlier this week. The Fed and most private economists expect the unemployment rate will remain above 9 percent through the end of this year.

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