Obama’s aggressive stimulus plan may be failing, or at the very least, hitting a stumbling block. 467,000 were shed from the U.S. economy, giving hints that the average American worker has not seen relief from the recession.
The current rate of unemployment is an at the highest rate seen in the last 26 years, sitting at an unpleasant 9.5. Thursday’s reports show an alarming trend that promises the end of the recession and the loss of jobs to come are not yet at an end.
Alan Ruskin, a strategist at RBS Greenwich Capital. “The employment report can largely be taken at face value, and the face value story is a labor market that is not improving nearly as rapidly as the May data suggested.”
Before depression sets in at the newest reports, it should be noted that June did show an improvement from the starting point of January as more than 600,000 jobs per month were being lost at that time. Also, the jobs lost according to the report are widespread among several industries and not limited to specific job markets. Some of this loss could be the simple fluctuation that occurs naturally within any one industry over a period of time.
In layman’s terms, this translates into the short term goal of Obama’s stimulus plan not being met. While there is still hope and a sense of promise from the data that the long term effect of the stimulus package will be reached, the immediate state of the economy is not showing it. The recession will end based on a simple physics concept: All things end. The ending of one process will spark the beginning of the next. The solution offered by Obama is not one that can be expected to have immediate results the population desires. Instead, it will have a slow but steady increase in success as the economy recovers with each new aspect of the package as it is introduced.
The bottom line: be patient. There will be a brighter economic future, but nothing gets fixed overnight.
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