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• The unemployment rate, a significant economic parameter in the United States, is calculated by dividing the number of unemployed workers by the total civilian labor force. Unemployment data is gathered by the Bureau of Labor Statistics. According to government figures, the U.S. economy lost nearly 2.6 million jobs in 2008—the most since 1945.CNN Money: Worst year for jobs since '45 (January 9, 2009)

  During the month of May, 2009, fewer jobs were cut in a single month since the previous fall. Although job losses during the month dropped to 345,000, the overall unemployment rate rose to 9.4%, a 25-year high. Economists estimate that job losses will likely continue to taper off, but those that have lost their jobs may continue to have difficulty finding more work.San Francisco Chronicle: US loses just 345,000 jobs in May, raising hopes

• Fast Facts

  1. Nearly 2.6 million U.S. jobs lost in 2008; 1.4 million of those jobs were lost in the final four months of the yearFOX Business: Economy Sheds 524,000 Jobs... (January 9, 2009)
  2. U.S. jobless rate reached 7.2% in December 2008; highest rate since January 1993CNN Money: Worst year for jobs since '45 (January 9, 2009)
  3. Some analysts believed the unemployment rate could eventually hit 10% or higher in the wake of an ongoing financial crisisCNN Money: Worst year for jobs since '45 (January 9, 2009)
  4. Highest period of unemployment since 1948 was 9.7% in 1982BLS: Annual average unemployment rate
  5. Lowest period of unemployment since 1948 was 2.9% in 1953BLS: Annual average unemployment rate
  6. U.S. city with the lowest unemployment rate in October 2008: Fargo, North DakotaAOL.com: U.S. Cities with the Highest and Lowest Unemployment Rates (January 1, 2008)
  7. 2007: U.S. city with the highest unemployment rate: McAllen-Edinburg-Mission, TexasAOL.com: U.S. Cities With the Highest and Lowest Unemployment Rates (January 1, 2008)
  8. Frictional unemployment is when a worker moves from one job to another
  9. Increases in frictional unemployment can be a good sign for the economy
  10. Classic unemployment occurs when the wages are set above the market
  11. Keynesian unemployment occurs when the economy experiences a business cycle recession and demand for labor decreases

• Unemployment Calculation

  • The Unemployment Rate = Unemployed Workers / Total Labor Force x 100%

• January 2009 and Beyond

  The number of people filing for unemployment rose by 54,000 new claims in the week ending January 10, 2009.Fox News: Weekly Jobless Claims Jump 54,000 to 524,000 (January 15, 2009) The Chicago Federal Reserve Bank chair Charles L. Evans commented that the unemployment rate would likely continue to rise into 2010.Forbes: US ECON: Evans Says Unemployment Rate To Rise Into 2010 (January 15, 2009)

  On February 5, 2009, the government said the number of first-time filings for unemployment in the U.S. increased to 626,000 for the week ending January 31, 2009—the highest level since October 1982.CNNMoney.com: Jobless claims highest in 26 years (February 5, 2009)

  On February 6, 2009, the Labor Department said the U.S. unemployment rate reached 7.6% in January 2009—the highest level since December 1974, with employers cutting nearly 600,000 jobs from their payrolls.CNN Money: Job loss: Worst in 34 years (February 6, 2009) Bloomberg.com: U.S. Jobless Rate Soars as Payrolls Plunge by 598,000 (February 6, 2009)

  On February 19, 2009, Labor Department officials announced that first-time applications for unemployment benefits remained at an all-time high for another week. Benefit rolls continued to expand, showing 4.99 million workers receiving benefits.Bloomberg.com: U.S. Jobless Benefit Rolls Reach Record 4.99 Million (February 19, 2009)

  On March 6, 2009, the Labor Department announced that the unemployment had reached 8.1%, the highest it has been since 1983.FOXNews.com: Jobless Rate Sours to 8.1%, Highest Since 1983 (March 4, 2009)

  On April 3, 2009, the unemployment rate in the U.S. reached 8.5%, the highest since late 1983The New York Times: Jobless Rate Hits 8.5% After 663,000 Jobs Lost in March (April 3, 2009)

  As the U.S. recovered from the economic downturn, the number of people filing for unemployment insurance rose for the week of May 16, 2009. A record number of citizens also filed for unemployment benefits topping a record at 6.66 million. The U.S. Labor Department underestimated the severity of the labor market and has predicted conditions to worsen as the auto makers file for bankruptcy and close dealerships.Bloomberg.com: Jobless Claims in U.S. Decreased 12,000 to 631,000 (May 21, 2009)

• November and December 2008

  On November 13, 2008, figures showed initial jobless claims reached 516,000 for the previous week—the highest level since September 2001. On November 7, 2008, figures showed the U.S. unemployment rate hit 6.5%— the highest rate in more than 14 years.Bloomberg.com: U.S. Jobless Claims Reach Seven-Year High of 516,000 (November 13, 2008)

  On December 5, 2008, the government said the U.S. unemployment rate had reached 6.7%— the highest level since 1993. The Labor Department said an estimated 533,000 jobs were lost in November 2008, bringing the yearly total to 1.9 million.CNN Money: November: Most jobs lost in 34 years (December 5, 2008)

  On December 11, 2008, the government said the number of Americans filing first-time unemployment benefits claims reached a 26-year high. The Labor Department said filings reached an estimated 573,000 for the week ending on December 6, 2008—the highest level since 1982.CNN Money: Jobless claims at 26-year high (December 11, 2008)

  On December 24, 2008, the government said the number of Americans filing first-time unemployment claims hit a 26-year high. The Labor Department said filings reached an estimated 586,000 for the week ending on December 20, 2008.Bloomberg.com: U.S. Initial Jobless Claims Rise to 26-Year High (December 24, 2008)

  In December 2008, the unemployment rate reached 7.2%, with employers cutting 524,000 jobs from payrolls. Some analysts predicted that the U.S. unemployment rate would continue to rise, and could hit double digits of 10% or higher in 2009.CNN Money: Worst year for jobs since '45 (January 9, 2009)

• Obama's Warning

  In January 2009, President-elect Barack Obama warned that the unemployment rate could reach double digits without a detailed plan on how to solve the current financial crisis. Obama made the warnings when promoting his economic plan, which includes a plan for a second stimulus package.LA Times: Obama to seek support for nearly $1-trillion recovery plan (January 8, 2009)

• Related Pages on Mahalo

  Unemployment Extension | 2008 Recession | Stagflation | Inflation | Stagnation | Interest Rates | Price of Oil | Food Stamps | Ben Bernanke | Stock Market | Subprime Mortgage Crisis | Recession | Paul Nawrocki | EDAR | Joshua Persky | NPR Cutbacks | How to Get a Job | How to Tell When the Economy Is Getting Better | How to File for Unemployment in Indiana | How to File for Unemployment in Georgia | How to File for Unemployment

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