Unemployment Soars up but Dismissal Cases Subside

Karel Dunnel, Statistics Chief at US Buerau Labour Statistics [BLS] Saturday [5/9] sent Business News information of the condition of manpower in the USA “Up till now unemployment level is still moving up to 9.7% level [table 2] but the level of dismissal cases continued to decline. The general picture shows a certain degree of recovery but the industrial sector is still unable to accommodate newcomer workers or long time workers who were dismissed”.

Tight efficiency program also accounted for the ever growing unemployment level in the USA “Before the terrible crisis at end of 2007, most of the industry treated efficiency as nothing but a discourse. Often expressed as a commitment, while the implementation is completely contradictory. The notion that ‘easy money’ was at green light in the USA as economic giant, had side kicked efficiency program as something unimportant. But now that every body is aware that even a Mr. Giant could be crisis-beaten, the efficiency was perceived as something to be exercised somehow. The efficiency program that seems to be so extreme, automatically closed the doors to employee recruitment”.

Business Rolls Positively

With the application of efficiency program and termination of employment occurring at unusually large scale in the USA, the public assumed that business would roll on, while some big corporations were already chalking up profits. However on the other hand, the position of manpower continued to be under pressure. “The 9.7% level is the top record of unemployment in the USA in the past 26 years. It is projected that the joblessness level would break through 10.0% level this year and may remain through 2010. Recovery has shown its clear sign, but the condition is still not conducive for labour increase”.

Through August of 2009, the average productivity level by per week man-hour was at level 33.1 which was the average work week. “There is a notable increase, i.e. around 10% against data of June 2009. Production level increases because the dividing figure [workers] plunge down while industry accelerates significantly. At least this is an indication that a recovery process is taking place. Global demand is not completely normalized, meaning, to jack up productivity is something not really ‘necessary’ because the macro economy being at the early stage of recovery”.