Economy is on the Brink: The unemployment rate surges to a 2024 high, a looming 50bps rate cut signaling desperation.

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The economy is on the brink, and it’s hard to ignore the signs. The unemployment rate has surged to a 2024 high. According to the U.S. Bureau of Labor Statistics, the unemployment rate for November 2024 was 6.8%, a significant increase from earlier in the year. This spike is alarming and signals a potential downturn in the job market.

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In response to this economic pressure, the Bank of Canada announced a looming 50 basis points rate cut in November 2024. This move is seen as a desperate attempt to stimulate the economy and encourage borrowing and spending. However, such a significant rate cut also highlights the severity of the economic challenges we’re facing.

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One of the most shocking details is the rise in long-term unemployment. The number of people unemployed for 27 weeks or more has increased from 1.3 million a year earlier to 1.6 million in November 2024. This indicates that many people are finding it difficult to re-enter the workforce, which can have long-term negative effects on their career prospects and financial stability.

Sources:

https://www.bls.gov/charts/employment-situation/civilian-unemployment-rate.htm

https://www.bls.gov/news.release/pdf/empsit.pdf

https://www.bankofcanada.ca/2024/10/fad-press-release-2024-10-23/