The economy has cut over 1 million jobs so far this year, according to the Department of Labor, and first-time filings for unemployment insurance increased 542,000 in the past week - the highest since July 1992. The numerous reports of corporate job slashing in November are a sign that the labor market won't start to recover any time soon.
Unemployment forecasts have risen as the economic outlook for 2009 continues to worsen.
The Federal Reserve Tuesday said it predicts the unemployment rate will remain around 6.5% for the remainder of 2008, and will rise up to 7.6% in 2009. But that's a far cry from the jobless rate forecast of 9% for next year with further increases in 2010 that Goldman Sachs released Friday.
More job cut announcements are likely on the way.
But even if the economy begins to improve in the second half of 2009 as some economists predict, unemployment could still continue to rise. Typically job losses continue for many months after the economy begins to pull out of a recession, with unemployment rates peaking as much as a year after the recession hits its trough.
In an attempt to heal the ailing job market, President-elect Barack Obama has repeatedly stated his support for another economic stimulus package in the form of tax rebates to consumers, states and municipalities. The proposal has gained traction in Congress, with hopes that consumer spending and aid to governments will help boost the economy.
But Obama won't take office until January, and signed legislation could be a long way off. In the meantime, experts say the labor market will continue to struggle.
You need to be prepared for the possibility of a job loss no matter what industry you are in or what position you hold. Update your resume using numbers and percentages to quantify accomplishments, keep building your network, explore your options while still employed (you are more marketable), anf be willing to assist others in finding a job.
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