As the U.S. continues in its longest depression since World War Two, the unemployment rate rose to a 26-year high of 9.5 percent in June with employers cutting over 467,000 jobs, reported the Associated Press.
The Associated Press reported that many economists believe the unemployment rate will rise to 10 percent before the year’s end and possibly continue to rise into next year. Several economists also believe that the rate of unemployed Americans will not fall to 5 percent until 2013.
If the unemployment rates were calculated with the addition of those who have stopped looking for work and those who have settled on part-time work, then the unemployment rate would be much closer to 16.5 percent, reported the Associated Press.
The only growing sectors are Education and Health Services, reported the Los Angeles Times.
The average workweek fell to 33 hours, reported the Los Angeles Times; leaving more Americans with smaller paychecks.
Bloomberg reported that Wachovia Corporation’s chief economist, John Silvia said, “This will be another jobless recovery.
“We may get positive economic growth driven largely by federal spending, but people on the street will say, ‘Where are the jobs?’”
Kimberly-Clark’s Chairman and Chief Executive Officer Tom Falk said, “These actions, while difficult, are necessary to help us emerge from this demanding economic environment,” reported Bloomberg.
Bloomberg also reported that Kimberly-Clark, the maker of Huggies diapers and Kleenex tissues, plans to cut 1,600 jobs by the end of the year.