Jobless Rate Makes Biggest Jump in 22 Years
Posted on June 7, 2008
Filed Under Must read, Gen X, Gen Y
For some time now I’ve been advising you to utilize caution in today’s labor market. Many have disagreed with me saying we’re entering the best labor market since WWII, but more and more we’re seeing indications that companies are tightening up on hiring given the current rocky economic conditions. Today came more news that bolsters my side of this argument. The nation’s unemployment rate jumped to 5.5 percent in May — the biggest monthly rise since 1986 — as nervous employers cut 49,000 jobs. This is a .5 percent jump in May, the biggest in 22 years.
Folks, the reality is our economy is a house of cards at the moment. Rising fuel costs are effecting companies and individuals in ways we haven’t seen in decades. It may be some time before we see the full effects. Add to this the already shaky mortgage industry and you have an economic disaster waiting to happen. Believe me when I say I take no pride in being right on this one, but the facts are what they are. That said here’s where I see things going in the next 6-9 months.
Companies are concerned about the economy so they’re clamping down on hiring, look for this to continue. If at all possible sit tight in your current job, if you’re concerned about your job, get proactive and soon. The stock market will likely continue to rollercoaster, if you’re in the market, sit tight. Fuel costs are hovering around $4 a gallon, but global demand is at an all time high and not going to slow down, so look for gas to keep creeping up. I’d look for gas to hit at least $4.25 by Labor Day and go higher still as winter approaches. With the elections in November, don’t expect too many changes until the new year when our new President takes office. I know it’s a gloomy, but remember these things always run in cycles, this is just another storm we’ve got to ride out. Once this one passes, I do think we’ll see an strong hiring uptrend, but we’re not there yet.
Until next time…
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