US employment figures

Confirmation that the American economy is slipping into a deep slump today with the news that 240,000 jobs vanished in October meaning unemployment is at a 14 year high across the Atlantic.

Unemployment now stands at 6.5% and has been rising now for 10 consecutive months.

It was hardly the best news for the President elect who was due to meet with his advisers and discuss the economic picture.The figures merely confirm the major problems that Obama will inherit come 20th January.

According to the Washington Post

Manufacturing lost 90,000 jobs, part of a steady decline in U.S. factory employment, while construction shed 49,000 jobs. The retail sector lost 38,000 jobs, with high gas prices, stagnant wages and general concern about the economy leading consumers to scale back spending. Professional and business service companies dropped 45,000 positions.

Thia from Richard Dekaser, chief economist at National City Corp

We have entered the phase of serious recession conditions. Unfortunately we will encounter more of this going forward. This is going to increase the urgency for another stimulus package to staunch the slide. Stimulus spending like (we had) early this year was not very effective. Infrastructure spending does not work quickly. Waiving the tax on jobless benefits is a fabulous idea because the money saved will be 100% spent.