The unemployment went up to 9.0% from 8.9 and we suspect then it may be higher after further analysis. The unemployment based upon our January 2008 baseline is 12.2% and there seems to be a decline there albeit slow and low!
The above shows the details but we see some slight improvement but frankly nothing to cheer about. Employment losses are themselves the main cause of a deficit, other than the usual factors of excess Government spending.
The key question is what will stimulate economic growth, the problem is that we have decreased demand, increased productivity and outsourcing of those elements which we can get results off shore. None of these will change short term. Thus deficit changes will be painful with Government expenditure cuts, DoD included.
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