| Despite talks about economic recovery, unemployment rate is still rising in the US. This trend can weaken the Democrats position.
Although economic decline seems to decompress, the unemplyment rate is anticipated to rise and exceed 10% within the year of 2009. Growth of poverty and weak economic growth might provide even more grounds for blaming the president and Parliament for abuse of public funds. If the situation remains unchanged, the government which has been justifying its spending by the attempts to make new working positions and treat the economic instability, will face difficult times, particularly during the midterm elections of November 2010.
The economic policy of The president entails the investment of 787 bln dollars in renewable energy, health care, education and vocational training. The government affirms that this step will help to make the saving stable and create working places. This optimistic vision, however, is not shared by economic professionals. By their estimates, the unemployment is going to exceed 10% in 2010, and its return to the pre-recession level (about 5%) can be expected not sooner than in a few years. The expected development of the employment situation is going to seriously affect children, low-skilled workers, immigrants, African and Latin Americans.
Lawrence Mishel, president of the Economic Policy Institute, is reported to allege that the rate of structural unemployment will produce unparallelled damage to many communities and verbalized his astonishment with the careless attitude of American citizens. According to statistics, since December 2007 the quantity of jobs in the U.S. Has reduced by well-nigh 5.7 million. Although recent months showed a slight improvement of the employment situation and rise in expenditure, the tendency goes on, and the number of jobs still is getting reduced.
Making things worse, American companies spare no efforts to re-employ workers and present modern technologies into production, thus making their employees redundant. Furthermore, the economic fall almost ruined the economic sector and the automotive industry. Even government interference fails to recreate nany of the jobs in these sectors.
"The rate of unemployment has not reached its critical point, it will last lots yearner," claims Mishel. The political debate seems to indicate that the deterioration is behind us, but we still need to discuss ways out of the actual crisis, i.e. to recreate jobs." |
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