Worried Americans cut spending as jobs disappear
CINCINNATI (Reuters) - Americans, already anxious about losing their jobs, faced Friday's news of deepening unemployment with grim resignation and vowed to cut their spending further, update their resumes and brace for survival in what many expect will be a long, painful recession.
A government report showing U.S. employers cut more than half a million jobs in December and the jobless rate climbed to its highest point in nearly 16 years seemed to surprise few Americans interviewed in cities across the country.
"I'm very worried about my job," said Ellen Whittington, 32, who works for a German automotive company in Cincinnati.
"I've gotten back on (online career site) Monster to update my resume and I'm trying to network with people I know," said Whittington, who hopes her 10 years in the fast deteriorating auto sector will translate to another field.
But, like many, she's preparing for a long recession.
"I think it's going to get a little bit worse before it gets better, maybe another two to four years," she guessed.
In Chicago, 29-year-old Matthew Lane was discouraged by a his futile six-month search for full-time work.
"I have two part-time jobs that I really enjoy that don't pay a whole lot but pay enough to keep me afloat," said Lane, who works at the Chicago Children's Museum and teaches music.
"Finding full-time employment would be ideal ... I'm certainly trying, but it's been unsuccessful for a while now."
The U.S. jobless rate rose to 7.2 percent in December as employers cut 524,000 jobs, the Labor Department said.
Economists said the unemployment rate -- the highest since 1993 -- would have been even worse if not for thousands of Americans who have simply given up looking for work. Nearly two million jobs have been lost in the last four months.
"We're seeing a complete unraveling of the labor market and are on track for getting beyond 10 percent unemployment," said Lawrence Mishel, president of the Washington-based Economic Policy Institute.
DIRE PREDICTIONS
Ordinary Americans are also offering dire predictions for the unemployment rate.
"I do think it will go over double digits," said 43-year-old Tracy Miller of Overland Park, Kansas, who lost her job nearly a year ago packaging home loans for a Kansas City mortgage company. Continued...
