Jun 8, 2008

Unemployment rate jumps - 5.5%

Jun 8, 2008

June 07, 2008

US already facing a crucial subprime mortgage crisis and increasing in oil prices, with soaring of inflation, now in addition to that another problem in vein as the weakening in job market.

A survey on household says that US last months unemployment is the biggest since last 22 years, it is a huge count in its 22 years history.

The unemployment rate, which is calculated using a separate survey of households, increases 0.5 percentage point to 5.5 per cent, its highest level since October 2004. The half-point rise was the biggest since February 1986. In the survey it is evident that the employment is fell to 285,000 and the unemployment has increased tremendously to 861,000.

Philip Rones, deputy commissioner of the Bureau of Labour Statistics said that the household survey tends to be volatile between April and July due to an inflow of young people into the workforce. the rise in unemployment was "disproportionately" concentrated among 16 to 24 year olds.

On an average the hourly earning is also increased to 3.5percent since last year, $US0.05 to $US17.94.

source: www.theaustralian.news.com .au
What is the cause for these changes? it might be Crude oil price hike due to speculators.
Above all US dollar depreciation is also a major cause. Government Policies should be corrected to face this kind of problem.

In US it is mostly declared that Obama is the next President and he might be cut most of the H1B visas which provided for skilled workers from outsider to invade US for professional Job.

If Obama do so, then plenty of changes will happen across the world, especially the Outsourcing mamooth India will suffer a lot.

Infosys an India based IT company alone applying more than 20,000 H1B visas for its workers to work in on site..

What is the remedy for these things.

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