US jobless rate 'to hit double figures'

Fri Nov 6 2009 11:50:58

Analysts in the US are warning of another gloomy milestone, by suggesting the country's unemployment rate has hit double digits.

Economists expect statistics out later from the US Bureau of Labour Statistics' to show joblessness running at above 10 per cent for the first time in more than 25 years.

And experts believe the situation is likely to get worse before it gets better.

Last month the headline rate of unemployment was noted at 9.8 per cent. In all, 15.1 million Americans are currently classified as unemployed.

That is around double the figure recorded before the onset of the recession, with 7.6 million people being laid off since December 2007.

Dean Baker, co-director of the Centre for Economic and Policy Research in Washington, said: "It is likely that we will see it rise by 0.2 per cent, which will bring it up to 10 per cent."

The last time it was at that level was in the early 1980s. US unemployment hit a high of 10.8 per cent in November 1982 before dropping back into single figures in July of the following year.

The White House has long warned that unemployment would again hit double figures.

But the news will still come as a disappointment following recent more rosy indicators.

Last week it was announced that US gross domestic product (GDP) had returned to growth for the first time in over a year.

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