The unemployment figures for December will be released this friday, I believe. Will those figures show an increase in the ranks of the nearly 15.5 million unemployed?
The answer is: yes. My question here is this: If there are 8 million unemployed, and that equals 10 percent, then 1 percent would be 800,000 and .1 percent would be 80,000. Since 85,000 jobs were lost, the unemployment rate should have risen by .1 percent. It didn’t. More spin?
The numbers for the year are even worse:
I am not sure if these numbers are representative of what is going on in the rest of the country, but I would imagine that they are. We are posting bankruptcy rates that are 4 times higher than what they were in 2006.
Every bankruptcy filing represents lenders and businesses that are not going to get paid at least a portion of the money that they thought they would. Until the unemployment and bankruptcy numbers start to fall, it is too premature to even think about a recovery.