Unemployment rate to rise, could hit 10 percent – AP

Economy

In this Sept. 25, 2009 photo, Khaliha Adger, from left, Gregory King, and Fred Jenkins fill out applications for positions at a new bar and restaurant in Detroit. he Labor Department said Thursday, Oct. 1, 2009, first-time claims for jobless benefits rose more than expected last week, a sign employers are reluctant to hire and the job market remains weak.(AP Photo/Paul Sancya

 

Oct 2, 1:28 AM EDT

Unemployment rate to rise, could hit 10 percent

By CHRISTOPHER S. RUGABER and MARTIN CRUTSINGER

WASHINGTON (AP) — The unemployment rate hasn’t topped 10 percent since June 1983, but it could return to that painful level soon – possibly as early as Friday, when the Labor Department issues its monthly jobs report.

Even as the economy shows signs of life, some employers are still cutting jobs, and many more are reluctant to hire after enduring the worst recession since the 1930s.

A return to 10 percent unemployment could pose political problems for President Barack Obama, who pushed through an ambitious $787 billion stimulus package in February intended to “save or create” 3.5 million jobs by the end of 2010. The administration said earlier this month about 1 million jobs have been saved so far.

via News from The Associated Press.