Warning sounds on unemployment economy
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The unemployment rate has jumped from 5 percent in December, while the economy has a meagre 18,000 jobs, the smallest monthly increase in four years, the Department of Labor said Friday.
Economists consider the report as the strongest on this day the indication that the United States could, but certainly in a recession slowed. Evidence of the extension of unemployment increased the expectation that the Fed still lower, the interest rates in this month, possibly by an unusually high level of half a percentage point in an attempt to prevent the economy slipping into the black areas.
“This is clearly negative,” said Mark Zandi, chief economist of Moody’s Economy.com. “The economy is on the verge of recession, if we are not in an already devoured.”
A recession is usually defined as a prolonged period of at least several months, in which the lower economic activity and unemployment rising.
The rapid deterioration of the labour market has résonné like an emergency brake, which, if they only troubles of the real estate and construction versions, in the economy in general, respond to the ability of the US consumer, so that the expenditure customary law to leave .
On Wall Street, the report has led to a big sale, above the average of the Dow Jones industrial emerges from just under 2 percent.
Posted on: Saturday, January 5, 2008 at 2:24 pm 
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