As jobs in US decline fears over global economic recovery persist

 

Fears that the world recovery is running out of steam were heightened last week after the US jobs market stalled for a second month and the eurozone appeared to be slipping further into recession.Just 115,000 new jobs were created across the US in April, far fewer than the 163,000 in the previous month and well short of the 400,000 that have marked previous recoveries. The unemployment rate fell to 8.1%, but this came as the percentage of the population in the labour force declined, in part because people had stopped looking for work.Markets slumped on the news as traders prepared for a disappointing 2012. The FTSE fell 1.9% to 5655 and the Dow Jones had slipped 168 points to 13,038 by midday in New York.The report is expected to rattle nerves at the White House, which has enjoyed a run of positive economic news over the last six months. The US stock market has risen 12% since January.The Democratic administration will also be concerned at the prospect of a prolonged recession in Europe after most countries in the 17-member eurozone suffered a fall in economic activity in April.Italy led the downturn after its services sector shrank for the 11th consecutive month in April and at its sharpest rate for almost three years. It had already suffered the worst manufacturing numbers for three years.Several eurozone countries are in recession, including Italy, Spain, the Netherlands and Portugal. The UK has also spent the last six months in recession according to figures out last week. Brussels had expressed hope that the recessions would be shallow and shortlived, but recent data points to the eurozone facing deeper woes.

http://www.ft.com/global-economy

3 thoughts on “As jobs in US decline fears over global economic recovery persist

  1. The general economic situation not only in Europe but also on a global view is very concerning. The numbers of unemployment in nearly all countries keeps growing and no change is expected in the near future. The pressure on governments and institutions as the ECB or the FED to solve the world-wide crisis is becoming bigger and bigger. There have several steps been taken which were supposed to improve the situation and lead out of the crises. Non has lead to an end of global recession. Especially in Europe the situation got worse. After Greece being the first country of the Europe Zone becoming bankrupt more and more other EU-countries are struggling with their financial households. It was/is already a huge challenge for the EU member countries to provide financial help and support to Greece. Now, when even further countries like Portugal, Spain or Italy will need the same financial help, the EU will have to carry an enormous burden and face a very tough future.

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  2. It seems that although the unemployment rate is dropping things are not improving, the rate is only dropping due to people becoming economically inactive perhaps due to illness, other commitments retirement or most likely due to having lost moral and are demotivated and are no longer actively looking for work. Therefore the figures look positive but few people are actually finding work.

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