The following were the outcomes by year: In 2008, President Bush’s final year in office, the country lost 3.55 million people. President Barack Obama’s first year in office resulted in a loss of $5.05 million. 8.6 million dollars were lost in all.
During the Great Recession, which began in 2008, how many jobs were lost?
Employers did not start hiring until 2010. For a long period, progress on closing the employment gap was modest, but by mid-2014, the economy had regained the 8.7 million jobs lost between the onset of the crisis in December 2007 and early 2010, and had continued to add jobs after that.
How many individuals were laid off in 2008?
NEW YORK (AP) According to the government, employers in the United States lost 2.6 million employment in 2008, the worst year since 1945, and a fast deteriorating economy forecasts more severe job losses in the future.
According to the Labor Department, the jobless rate increased to 7.2 percent in December, the most since January 1993, up from 6.8 percent in November. More than 11 million people in the United States are currently unemployed.
Economists were at a loss for words when it came to characterizing the terrible nature of the jobs report, which they described as worrying confirmation that the economy was in the throes of a steep downturn.
The just-completed fourth quarter and the first quarter of this year will be the most difficult six months, according to Robert Barbera, chief economist of the Investment Technology Group, a research and trading organization. He believes that if a stimulus package is large enough, it will start to restore the economy in the second part of the year.
What was the unemployment rate following the 2008 financial crisis?
The national unemployment rate was 5.0 percent in December 2007, and had been at or below that level for the previous 30 months. It reached 9.5 percent at the end of the recession, in June 2009. The unemployment rate peaked at 10.0 percent in the months following the recession (in October 2009).
During the recession, how many people lost their jobs?
During the greatest recession in recent history, millions of Californians are struggling to pay for basic essentials like housing and food. Unemployment in California remains exceedingly high, especially among Black and Brown Californians. Furthermore, many people’s financial situations have worsened as Congress has failed to extend additional federal unemployment benefits or give any new economic relief that would help children, families, and adults who have lost income and are unable to return to work securely. This report examines how California’s workers are faring six months into the COVID-19 recession, highlighting the urgent need for federal and state policymakers to provide more assistance to people and do more to address the economic crisis that is exacerbating health and financial disparities for Californians, particularly Black and brown Californians.
California’s Unemployment Remains High, Know the numbers:
California continues to lose more employment than it did during the Great Recession. Because of the COVID-19 disaster, California had lost 1.7 million employment as of August. This is around 400,000 jobs more than the state lost during the Great Recession, which began in 2007. California shed 2.6 million jobs earlier this year, more than twice the number lost during the Great Recession.
What triggered the recession of 2008?
The housing bubble burst in 2007 and 2008, triggering a protracted recession that saw the jobless rate rise to 10.0 percent in October 2009, more than double its pre-crisis level.
Who is responsible for the 2008 Great Recession?
The Lenders are the main perpetrators. The mortgage originators and lenders bear the brunt of the blame. That’s because they’re the ones that started the difficulties in the first place. After all, it was the lenders who made loans to persons with bad credit and a high chance of default. 7 This is why it happened.
How many jobs did the Great Depression take away?
After the stock market crash in October 1929, the Great Depression began. The stock market in the United States soared in the late 1920s. Many people in the United States began to buy shares, and the value of equities skyrocketed. The New York Times index of the top twenty-five industrial stocks reached a high of one hundred points in 1924. These same equities had risen to 245 points by the start of 1928. Throughout 1928 and much of 1929, the stock market continued to rise. Early in September 1929, the twenty-five major industrial stocks achieved a high of 452 points. In less than two years, the stock’s selling price had nearly doubled.
Many people in the United States believed they might build a huge fortune as stock prices rose. Many investors took out loans to buy stock. These investors would earn as long as the stock market continued to rise in value. The stock market began to fall in value in September 1929, as larger investors realized that many stocks were overvalued. On October 23, the stock market dropped thirty-one points, or about 7% of its value. The next day, the situation deteriorated. The twenty-five leading industrial stocks had fallen to 224 points by mid-November, less than half their worth two months earlier. The stock market continued to fall in value, putting investors who had bought stock on credit in jeopardy. Some investors committed suicide because they believed they would never be able to escape their debts.
The Great Depression did not begin because of a drop in the stock market’s value. Only 2% of the population of the United States owned stock. The Stock Market Crash, on the other hand, was a harbinger of larger issues plaguing the American economy in the 1920s. Many employees’ incomes climbed during the 1920s, but the expense of living increased even more.
During the 1920s, some firms did not do as well as others. Trucks and oil posed a threat to railroads and the coal sector. As corporations struggled to stay competitive with burgeoning industries, workers in these more conventional industries saw their pay decline. As farmers adopted new technologies to improve yields, crop prices dropped. During the 1920s, almost 7,000 banks failed owing to unwise investments. Due to hefty taxes, other countries began to purchase fewer U.S. goods. Businesses in the United States started laying off workers until they could sell the merchandise they had piled up in warehouses. All of these causes contributed to the Great Depression’s onset. The October 1929 stock market crash was simply the final sign that a massive economic crisis was on the way.
Millions of Americans lost their employment during the Great Depression. In the United States, twelve million individuals were unemployed by 1932. Approximately one out of every four American households had lost their jobs. Renters in New York City alone were evicted almost 200,000 times in 1930 because they couldn’t pay their payments. Farmers across the United States have lost their farms to foreclosure due to low pricing for their products. While white people had troubles at this time, ethnic minorities had it considerably worse. For the most of the depression, African-American men’s unemployment rates hovered around 66%. Women of all races have also had difficulty finding work. As employers began to lay off employees, many of them targeted women first, believing that males needed the employment to support their wives and children.
Ohioans were particularly hard hit by the Great Depression. In Ohio, more over forty percent of industry workers and 67% of construction workers were unemployed by 1933. In Cleveland, fifty percent of industrial employees were unemployed, but in Toledo, eighty percent were. Ohio’s unemployment rate for all citizens was 37.3 percent in 1932. Industrial workers who kept their jobs frequently had to work fewer hours and earn less money. These people struggled to provide for their families. Many city dwellers in Ohio relocated to the countryside in the hopes of raising enough food to feed their families.
During the Great Depression, both Herbert Hoover and Franklin Delano Roosevelt served as President of the United States. Hoover, for the most part, felt that the economy would eventually fix itself. Roosevelt took a far more active part in the war. The New Deal was a series of government programs designed to assist Americans in coping with the Great Depression. The Great Depression lasted until the early 1940s, despite government efforts. Thousands of employment were created as a result of World War II, bringing the Great Depression to a conclusion.
Who was the hardest hit by the financial crisis of 2008?
The crisis had an impact on all countries in some form, but some countries were hit more than others. A picture of financial devastation emerges as currency depreciation, stock market declines, and government bond spreads rise. These three indicators, considered combined, convey the impact of the crisis since they show financial weakness. Ukraine, Argentina, and Jamaica are the countries most hit by the crisis, according to the Carnegie Endowment for International Peace’s International Economics Bulletin. Ireland, Russia, Mexico, Hungary, and the Baltic nations are among the other countries that have been severely affected. China, Japan, Brazil, India, Iran, Peru, and Australia, on the other hand, are “among the least affected.”
What was the economic loss in 2008?
The crisis caused the Great Recession, which was the worst worldwide downturn since the Great Depression at the time. It was followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 20082011 Icelandic financial crisis, which saw all three of Iceland’s major banks fail and was the country’s largest economic collapse in history, proportionate to its size of GDP. It was one of the world’s five worst financial crises, with the global economy losing more than $2 trillion as a result. The proportion of home mortgage debt to GDP in the United States climbed from 46 percent in the 1990s to 73 percent in 2008, hitting $10.5 trillion. As home values climbed, a surge in cash out refinancings supported an increase in consumption that could no longer be sustained when home prices fell. Many financial institutions had investments whose value was based on home mortgages, such as mortgage-backed securities or credit derivatives intended to protect them against failure, and these investments had lost a large amount of value. From January 2007 to September 2009, the International Monetary Fund calculated that large US and European banks lost more than $1 trillion in toxic assets and bad loans.
In late 2008 and early 2009, stock and commodities prices plummeted due to a lack of investor trust in bank soundness and a reduction in credit availability. The crisis quickly grew into a global economic shock, resulting in the bankruptcy of major banks. Credit tightened and foreign trade fell during this time, causing economies around the world to stall. Evictions and foreclosures were common as housing markets weakened and unemployment rose. A number of businesses have failed. Household wealth in the United States decreased $11 trillion from its peak of $61.4 trillion in the second quarter of 2007, to $59.4 trillion by the end of the first quarter of 2009, leading in a drop in spending and ultimately a drop in corporate investment. In the fourth quarter of 2008, the United States’ real GDP fell by 8.4% from the previous quarter. In October 2009, the unemployment rate in the United States reached 11.0 percent, the highest since 1983 and about twice the pre-crisis rate. The average number of hours worked per week fell to 33, the lowest since the government began keeping track in 1964.
The economic crisis began in the United States and quickly extended throughout the world. Between 2000 and 2007, the United States accounted for more than a third of global consumption growth, and the rest of the world relied on the American consumer for demand. Corporate and institutional investors around the world owned toxic securities. Credit default swaps and other derivatives have also enhanced the interconnectedness of huge financial organizations. The de-leveraging of financial institutions, which occurred as assets were sold to pay back liabilities that could not be refinanced in frozen credit markets, intensified the solvency crisis and reduced foreign trade. Trade, commodity pricing, investment, and remittances sent by migrant workers all contributed to lower growth rates in emerging countries (example: Armenia). States with shaky political systems anticipated that, as a result of the crisis, investors from Western countries would withdraw their funds.
Governments and central banks, including the Federal Reserve, the European Central Bank, and the Bank of England, provided then-unprecedented trillions of dollars in bailouts and stimulus, including expansive fiscal and monetary policy, to offset the decline in consumption and lending capacity, avoid a further collapse, encourage lending, restore faith in the vital commercial paper markets, and avoid a repeat of the Great Recession. For a major sector of the economy, central banks shifted from being the “lender of last resort” to becoming the “lender of only resort.” The Fed was sometimes referred to as the “buyer of last resort.” These central banks bought government debt and distressed private assets from banks for $2.5 trillion in the fourth quarter of 2008. This was the world’s largest liquidity injection into the credit market, as well as the world’s largest monetary policy action. Following a strategy pioneered by the United Kingdom’s 2008 bank bailout package, governments across Europe and the United States guaranteed bank debt and generated capital for their national banking systems, ultimately purchasing $1.5 trillion in newly issued preferred stock in major banks. To combat the liquidity trap, the Federal Reserve produced large sums of new money at the time.
Trillions of dollars in loans, asset acquisitions, guarantees, and direct spending were used to bail out the financial system. The bailouts were accompanied by significant controversy, such as the AIG bonus payments scandal, which led to the development of a range of “decision making frameworks” to better balance opposing policy objectives during times of financial crisis. On the day that Royal Bank of Scotland was bailed out, Alistair Darling, the UK’s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of “a breakdown of law and order.”
Instead of funding more domestic loans, several banks diverted part of the stimulus funds to more profitable ventures such as developing markets and foreign currency investments.
The DoddFrank Wall Street Reform and Consumer Protection Act was passed in the United States in July 2010 with the goal of “promoting financial stability in the United States.” Globally, the Basel III capital and liquidity criteria have been adopted. Since the 2008 financial crisis, consumer authorities in the United States have increased their oversight of credit card and mortgage lenders in attempt to prevent the anticompetitive activities that contributed to the catastrophe.
What types of occupations did the recession eliminate?
The Bureau of Labor Statistics (BLS) declared in April 2014 that the number of private-sector jobs in the United States has finally recovered to its 2008 peak six long years and an agonizingly slow four-year recovery. According to a 2013 analysis from the Congressional Research Service (CRS), unemployment was only 4.4 percent in October 2006, but had risen to 10% by 2009. It has recently reduced to 6.7 percent, but openings can still be difficult to come by. Many groups have been heavily impacted, ranging from veterans to recent college grads, and job searches for the long-term unemployed can drag on indefinitely.
The US economy is predicted to add 200,000 jobs every year, but those added will not necessarily be the same as those lost six years ago. The labor market in the United States has been significantly recomposed as a result of ongoing technical and economic transformation, including computerization and outsourcing. According to a 2013 study by Duke University and the University of British Columbia, middle-income occupations are rapidly vanishing during recessions.
“The Low-Wage Recovery: Industry Employment and Wages Four Years into the Recovery,” a 2014 analysis of BLS data by the National Employment Law Project (NELP), looks at the types of employment that were lost during the recession and those that have been added since the recovery began. The BLS’s Current Employment Statistics (CES) and Occupational Employment Statistics (OES) surveys provided the source data. The OES provided pay data, which is based on median estimates rather than averages, which can be skewed by higher-paid employment within certain industries.
- While the US economy has recovered to the number of private-sector jobs it had in 2008, the gains and losses have not been evenly distributed: 1 million jobs were lost in high-wage industries, whereas 1.8 million were added in low-wage industries. The effects of the recession vary widely, as indicated in the graph below, but overall, losses were greater in high-wage jobs and growth was stronger in low-wage jobs.
- Lower-wage industries were responsible for 22% of job losses during the recession, but 44% of job gains since the recovery began. During the recession, the lower-wage sector lost 2 million jobs, but has subsequently added 3.8 million.
- Food-service work, which pays the least of the low-paid jobs with a median hourly wage of $9.48, grew the most: While the recession resulted in the loss of 367,000 jobs, 1.2 million have been gained since then. Overall, the sector now employs 9% more people than it did before the recession.
- Health and education are two other low-wage growth industries: “This was the only industry to add jobs during both the downturn and the recovery, bringing employment nearly 13 percent higher than it was at the beginning of the recession.”
- Mid-wage industries accounted for 37% of job losses during the recession, but just 26% of new jobs since then. There are roughly one million fewer such employment presently than there were in 2008. Services provided by local governments were particularly heavily hit, and they have yet to fully recover.
- Higher-wage industries lost 41% of jobs during the recession, but only 30% of new jobs were created. 3.6 million jobs in higher-wage industries including accounting, legal work, and construction were lost during the recession; just 2.6 million jobs have been added since then.
- The high-wage professional, scientific, and technical services industries saw significant job growth through March 2014, adding more than 800,000 jobs occupations like accountants, legal professionals, software developers, and engineers. “While significant job growth in this higher-wage industry is a welcome trend, employment growth is nearly six percentage points lower than it was at a similar stage following the 2001 recession,” says the report.
- While there has been some recovery in construction, manufacturing, transportation, and related occupations, the recession losses were so large that they are only now returning to pre-recession levels construction employment is still 20% below its 2008 peak, for example, and food and textile manufacturing employment is still 11% below its pre-recession peak.
- “Over the last four years, private-sector increases have been somewhat offset by job losses in the public sector as a result of federal, state, and local budget cuts. During the recovery era, net employment losses totaled 627,000 across all levels of government. Education absorbed over three-quarters of the 378,000 net job losses over the last four years, which was particularly severe at the municipal level.”
- The job losses and gains in the 2001 and 2008 recessions were quite different: After the 2001 recession, 39 percent of the gains were in lower-wage industries, 20 percent in mid-wage industries, and 40 percent in higher-wage industries. Growth has been concentrated in low-wage and some mid-wage industries since the 2008 recession, but higher-wage growth has been significantly weaker.
In an interview with the New York Times, the study’s author, Michael Evangelist, said: “Fast food is driving the bulk of the job growth at the bottom end – the job gains there are just phenomenal.” If this is the case if these occupations are here to stay and will account for a significant portion of the economy the issue becomes, “How can we make them better?”
Recession, unemployment, inequality, financial crisis, jobless recovery, outsourcing, and computerization are some of the terms used to describe the situation.