Some experts are predicting that the unemployment rate will continue to rise and will probably hit double digits sometime in 2009. If this happens it will top the
90's recession. With more expected to lose their jobs, the economy will have a harder and longer recovery.
Everyone is eagerly awaiting Obama's stimulus package, however, experts agree that it will be later in the year before we begin to see any results. The remaining amount
of the original stimulus package is expected to go toward the housing market, which is where the economic downfall began. Initially the areas that were hit the
hardest by unemployment were the banks, real estate and mortgage firms, however, the economic blackhole has sucked in just about everyone, from people who
work in retail to factory workers.
Governor Schwarzenegger stated that California is in dire need of economic stimulus and that we must act quickly. Areas that are expected to receive stimulus will
be increases in revenue and programs that specialize in job creation.
In San Diego, we saw a little over a thousand people lose their jobs last month. This was San Diego's worst month since '94. Additionally, the unemployment rate went up to more than seven percent and almost 8500 people lost their jobs in retail alone, for the year. Hiring was even way down for the holidays, where retail only had an additional three hundred jobs available. In 2007, there were more than twenty-five hundred jobs available. Even in the early 90's recession, there were many more jobs available, but the consumer has spoken and they are cutting back on spending.
More layoffs in the retail sector are expected due to the fact that many were hanging on to see what would happen during the holidays. But now that the holidays are
over and were less than impressionable, stores will begin closing their doors, or trimming their workstaff.
Not all sectors showed a decrease, with the health care industry leading the way in San Diego, by adding more than fifteen hundred new jobs. Education was next on the
list and added just under the health care industry. Those who were hit the hardest in San Diego, after retail, were the construction industry, with more than
five thousand workers laid off, almost two thousand workers lost their job in the manufacturing industry, and the
San Diego real estate industry lost more than fifteen hundered workers.
San Diego continues to outperform the rest of California and many are expecting that San Diego will lead the way when it comes to its economic recovery.
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