1999 vs. 2009 What a difference a decade makes

Okay, so I just read a report titled “Unemployment and Jobs In International Perspective” by two distinguished professors for the United States Congress and it read “The United States has low unemployment rates and substantial job creation, while much of the rest of the industrialized world has high unemployment and little or no expansion in employment. Why?“

The in-depth report went on to show many descriptive statistics and simple econometric evidence to underscore why the U.S. did it better than the rest of the industrialized world due to its untiring attention to controlling labor costs. The report was written 10 years ago when the US economy was labeled the "Goldilocks economy" because things were going just right… not too hot and not too cold. Unemployment and inflation were both lowest they had been in 30 years and the stock market was booming with blossoming day traders all over the place. According to Business Week, the U.S. economy had entered a "new era" in which rapid technological change (especially information technology) will make it possible for the U.S. economy to continue to achieve both low unemployment and low inflation for the foreseeable future.

Oh what a difference a decade makes. Let’s fast forward to 2009 with the highest unemployment rates since the 80’s. Since December 2007 more than 5 million people filed for unemployment according to a recent report from the Department of Labor. The national unemployment rate hit 10.2% not since the 1980’s have we seen such a high rate. The manufacturing sector accounted for 36 percent of all initial unemployment filings during October 2009 compared to 2008’s number of 45 percent, reflecting a slight decrease.

Industries Hardest Hit in 2009:
1. Temporary help services
2. Motion picture and video production
3. Professional employer organizations
4. Automobile manufacturing
5. Construction machinery manufacturing
6. Highway, street, and bridge construction
7. Farm labor contractors and crew leaders
8. Food service contractors
9. Discount department stores
10. Hotels and motels, except casino hotels

States with the highest recorded unemployment rates for Aug, Sep & Oct 2009
1. California
2. Illinois
3. Florida
4. Wisconsin
5. Pennsylvania
6. Ohio
7. Michigan
8. Texas
9. New York
10. Indiana