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US – Huge job loses put recession in focus

January 25, 2012

This is certainly a bad news for the whole world as employers in the U.S cut the most workers in five years last months. According to the Labor department in U.S, employment fell by 80,000 jobs in March 2008. So it is the lay offs in five years. Some economists have now convinced that the economy is in recession, but some have admitted that U.S is in its early stage of recession period. Carl Lantz, U.S. interest rate strategist at Credit Suisse in New York, says, There doesn’t appear to be any silver lining. It shows that we’re right in the middle of a recession, our expectation is that it will be a longer recession than the last two, and we’re just in the beginning. The economy is suffering the effects of a housing collapse, a credit crunch and a financial system in turmoil. Due to this people and businesses are bound to hunker down, crimping spending, capital investment and hiring. Those things in turn further contribute to weaken the economy. The Workers from construction and manufacturing areas are largely hit due to slowdown. The interest rate by Federal did provide a short-term boost to financial markets. But these gains have been more than wiped out by the fall in markets throughout March. Certainly it is big problem for President Bush who has been criticized by opposition leaders on many external and internal matters of the country. There is need to address longer-term economic needs by developing alternative energy sources and boosting investment in education and worker retraining.