There has been a consistent decline in the global economic market in the recent few months, raising fears of a global slowdown.
Global slowdown, which broadly turns into a global recession if not stabilized, is a tumble in the global economy. Trade deficit and a rise in the unemployment rate are some major indicators of a slowdown.
The FTSE 100, an Index to monitor the market capitalization of the companies that are part of the London Stock Exchange, indicates a sheer drop in trade, ending at 2% lower.
There is unrest among investors amid the Brexit uncertainty and the trade tensions between the U.S. and China, with an expected drop in economic growth compared to previous years. Companies that make more than half their sales outside the U.S. are expected to make little to no revenue in the following months – their earnings estimated to drop by a major 11.2%.
The U.S. Central Bank also indicated a drop in economic power. The interest rate is expected to remain either stagnant or drop through the course of the year.
Post The Great Recession (the most recent case of unemployment and economic downfall), the unemployment rate has seen a gradual decline over the years. According to The U.S. Bureau of Labor Statistics, the rate ranges from a staggeringly high 10% at the end of 2009 to 3.8% in the May of 2018. The number has remained steady from then to December, and has since risen to 4.1% in February, 2019, a little higher than the estimated 3.9% for the month.
Similar to The Great Recession from a little over a decade ago, unemployment rates are potentially on the rise as more and more workers are getting laid off by companies to reduce their economic burden. Looking back at the months prior to The Great Recession, the rate of unemployment always exceeded its estimated value for each month, and was coupled with a fall in the stock market.
This is quite alarming for the working class of the U.S. as the opportunities to find work grow thinner by the day. Firms highlight and halt their least benefitting activities, which effectively reduces the number of jobs and adds to the unemployed masses.
The unrest brings the need for employees to constantly be on the lookout for favorable working posts as a laborer can never be certain about his/her current appointment to remain in the longer run.
A useful tool to keep yourself updated with the situation in your whereabouts is our Labor Alerts Application. It provides you with data regarding job losses near you. Download our app here: