10% Unemployment Rate By Summer
Right now the unemployment rate is over 5%.
Recently we have seen company after company announce it will be laying off 10% or more of its workforce. Merrill Lynch, AMD, Dell, and the list goes on and on. Government deficits is forcing big budget cutbacks. Construction, Mortgage Finance, and Real Estate sales has lost 50% or more of its employees in many cases with further cutbacks coming. Other businesses are shutting down completely. Many more are scaling back such as retailers, airlines and pharma companies.
It is not just one industry, the cut backs cross many boundries. Health Care, Contruction, Technology, Government, Finance, ect....At this point, forecasting a 10% unemployment rate by summer seems pretty reasonable. The question now is how much over 10% will we go if current contraction trends continue?
What will happen to housing and other industries from the impact of rising unemployment?