According to an article in the Star-Telegram, the government and many economists claim that the recession is in its waning days; but job losses tell a different story.
The article said:
“The government releases third-quarter Gross Domestic Product figures on Thursday. Many forecasters say they will show GDP growing at an annual rate of about 3 percent, validating a widely held belief among economists that the recession ended in June or July. But try telling that to the more than 15 million still unemployed, the small businesses and individuals who can’t get loans and the people whose homes are worth less than their mortgages.”
Since the recession began in December 2007, there have been 7.2 million job losses and many analysts still predict that the unemployment rate will surpass the 10 percent mark. Job losses have been one of the main contributing factors to foreclosures on prime-mortgage borrowers and continue to hammer the sales revenue of the retail industry. Many consumers have cut back on spending in preparation for possible job losses and the savings rate is higher than it has been in years. Until job losses slow, the unemployment rate decreases and the credit market recovers we can’t expect to have a real recovery anytime soon.