A 26-Year High Unemployment Undermines Recovery

The economy shed another 263,000 jobs in September and the unemployment rate rose to a 26-year high of 9.8% with 15.1 million people unemployed. The unemployment rate edged up from 9.7 percent in August, according to the Labor Department, and continued to inch toward double digits, a level last seen in June 1983.

Thought the rate of job loss has tapered off compared to the early months of the year, the persistently weak labor market could undermine a promising economic recovery from the worst U.S. recession since the Great Depression.

The bleak report emphasized the risk that without jobs, consumers won't have income to spend and that will restrain growth and give employers little reason to resume hiring after 21 consecutive months of job losses. Without consumers, the economy can’t experience a really strong recovery.