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MADISON, Wis. (11/9/09)

  • The unemployment rate in the U.S. broke the 10% benchmark earlier than expected and soared to a 16-year high of 10.2% during October. Economists surveyed by Bloomberg News last month had projected the rate would exceed 10% by early next year and average 9.9% for all of 2010 with the economy expanding 2.4% next year. But employers cut more jobs in October than forecast. Payrolls dropped by 190,000 workers last month, reported the Labor Department Friday. That compares with 175,000 drop anticipated by the economists. The jobless rate grew from 9.8% in September. The last time the jobless rate exceeded 10% was in 1983. The underemployment rate--which includes part-time workers who would rather have full-time position and people who want to work but have given up the job search--hit a record 17.5%, up from 17% in September. According to Bloomberg.com (Nov. 6), the high unemployment rate underscores why the Federal Reserve policymakers last week kept interest rates near zero ...

  • The future inflation gauge for the U.S. increased to 91.7 in October, up from September's 91 reading, indicating little inflation pressure in the U.S., according to the ECRI Future Inflation Gauge (FIG) for North America (Moody's Economy.com Nov. 6). Although the reading has been increasing in recent months, it remains low by historical standards. The U.S. FIG remains well under its last high of 125.1, which occurred in October 2005. The gauge's smooth annualized growth rate increased to 17.3% for the month, from 12.9% in September. With the ongoing weak recovery of the U.S. economy and the hike in joblessness, there is little concern renewed wage gains nurturing price increases, said Moody's ...

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