Subscribe to the BlogThe US unemployment scenario is not looking good at over 8% as of now. Most of the top 100 companies have indicated further pruning of their work force due to reducing demand, and also the need to stay alive.
The government sources are expecting the unemployment rate to reach the 10% level in the coming months. And the stimulus spending by the government is only helping to delay the inevitable.
The analysts are also indicating that the unemployment decline could start only two or three quarters after US returns to growth path.
That is because companies would be reluctant to hire new people unless they see a convincing return to growth path, for which they would prefer to wait for two or three quarters. In the meanwhile they would hire temporary work force in order to keep their machines and factories running.