The US Economy was dealt another serious blow as job losses for the month of November reached 533k. The reported figure was almost 200k over the expected numbers. This along with a revision for October of 320k lost jobs brings (80k more than previously reported) the total of lost jobs very close to the 2 million mark in the whole year.
Layoffs have already started for December which does not bode well for the economy as more American companies start cutting jobs to survive in a recessionary environment.
Most of the losses (70%) came in the Service sector, a sector which so far had done fairly well under the current economic conditions. Payroll losses are expected to continue well into next year as the Financial Sector continues to look for a turnaround along with Manufacturing companies that will have to rethink they market strategies to survive.
This week AT&T, Viacom and Dupont announced 33k layoffs as the Auto Sector is expecting a government bailout to avoid further cutbacks.
The shrinking job market has increased the Unemployment rate to 6.7% as Americans look ahead to one of the most challenging winters in History. The Unemployment rate could end the year at 8% due to the announced layoffs across all industries and further revisions to current data. President Elect Barack Obama issued a statement that pledges to address the current employment issues with a stimulus package that is intended to stop the Economy from shedding jobs and create 2.5 million jobs.