There is an old saying that an economic downturn turns into a depression as soon as you lose your job. With the current unemployment rate now at 10% (and down a bit from October’s high of 10.2%), there are substantial numbers of people who are  unable to find work. A recent New York Times/CBS News poll documents some of the common issues faced by the unemployed ranging from the obvious financial hardships to mental health issues and family conflict. Consistent with other reports, a healthy number are considering job re-training or a return to school.

In terms of the future, Paul Krugman, a Nobel Prize winner for economics, is concerned that job creation efforts have not gone far enough.  (He also makes tthe interesting point out that the economy needs to add over 100,000 jobs a month simply to keep up with population growth.) While he believes that the government did the right thing in stabilizing the banks last year, efforts have not been sufficient on the job front. However, rather than viewing the cup as half-empty, others see some positive news on the horizon. For example, unemployment claims are edging downward, there are increases in productivity, and seasonal hiring is at its highest level since 2004. Regardless, it is clear that the current economic situation has created substantial difficulty for millions (as well as for the business who want to thrive). We can only hope that these early signs of improvement are a signal of things to come.

Reid Klion