US unemployment rate tips over 10%
Figures from the US Labor Department have revealed that the unemployment rate in the US reached 10.2% in October, up from 9.8% the previous month and represents the highest level since April 1983.
The US economy lost a worse-than-expected 190,000 jobs during the month with the majority of job losses in the construction, manufacturing and retail industries.
However, there was some positive news after September’s figure of a loss of 263,000 jobs was revised downwards to 219,000 jobs.
Meanwhile, it was recently revealed that the US economy expanded at an annualised rate of 3.5% between the July and September period, suggesting that the economy had exited its worst recession in 70 years.
The growth pace in GDP exceeded expectations, with many expecting growth of 3%. The US economy last experienced growth in the second quarter of 2008, when it grew 2.4%.
However, many experts say despite an economy emerging from recession, unemployment can still rise, and this is the case in the world’s largest economy.
President Barack Obama described the rise in unemployment as “sobering” adding: “I will not rest until all Americans who want work can find work.”
Richard Franulovich at Westpac described the figures as “disappointing overall” and said: “Job losses are not moderating as quickly as I had hoped despite those earlier indicators on jobs.”
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