Recent economic recession job casualties count to 7.9 millions and most likely to increase, and this loss jobs most likely will never be recover.
Lakshamn Achutan, managing director of Economic Cycle Institute said that the job losses during the Great Recession were off the chart, even though that the private sectors provide 600,00 jobs, but still 8 millions jobs needs to be created.
Economy added less than 100,000 a month for this year, a good fast recovery compared to the last recession of 2001 and 1991
But even if the rate of hiring double immediately, it would take until 2013 to fill up the void. And the labor market likely doesn’t have years before it gets hit with the shock of the inevitable next economic downturn.
Despite signs of slow economic growth, Achuthan predicted that there will no economic downturn later this year. But a combination of slow and un stable economic growth is a sure sign for as many as three more economic recession over the next decade, Achuthan added.
United State of America entered an era where everyone will see more frequent recession than anyone is used to, he said.
One big problem for millions of worker that lost there jobs in an industries that most likely will never recover their former strengths.
John Silva, chief economist of Well Fargo Securities said that laborers from California and Florida, Car maker in Michigan needs to be relocated and retrain to find new jobs, “We have wrong people, in the wrong place, with the wrong skills and with the wrong job”, he added.
“People lost their job must find something else to do” said Silvia
Home building and development lost less than a million of jobs since 2008, auto making industries loss 300,000 workers and finance and real estate industry shed more half a million jobs.
That industry flourishes during abundance and it is not surprising that it is hardest hit area during economic recession. Scott Melland, CEO of Dice Holdings that specialized career web site. “Those job losses may never come back.”
Recapturing the lost jobs is also part of the problem.
Working age population grows about 150,000 people in a month. The problem is greater than it looks.
10.6 millions jobs are immediately needed to be created to at least ease this problem. But it takes time to create jobs. It needs 3.5 millions jobs in three years to keep abreast to the continuing population growth.
Currently, the unemployment rate is 9.5%, compare to 4.4% rate last 2007 summer, it is when the recession started.
Federal Reserved predicted that unemployment rate will stay around 7% or higher until 2012.